The government says converting agricultural land rights into secure, bankable, and transferable title deeds has the potential to unlock up to $20 billion in hidden economic value that is currently uncounted in Zimbabwe’s GDP.

Speaking at a high-level engagement on land tenure, Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube said agricultural farmland in Zimbabwe carries an average value of US6 cents per square meter, representing vast uncapitalised wealth.

He added that moving from administrative allocations, such as 99-year leases, offer letters, and permits, to legally registrable titles is designed to transform farmland from mere land-use access into a fully commercialised asset.

“At an average price of US6 cents per square meter, agricultural farm land in Zimbabwe has a hidden value, and titling land has the potential to unlock as much as US$20 billion, presently not accounted for in the current GDP accounting in Zimbabwe,” Prof Ncube said.

“The fundamental economic change is from administrative evidence of allocation to a legally recognisable asset around which farmers, financiers and investors can plan investment with greater certainty.”

To ensure lenders accept the new titles, he said the government is establishing five core pillars of bankability.

The pillars require legally enforceable rights, accurate digital surveys, credible valuation standards, cash-flow-based lending, and critical supporting infrastructure like insurance and irrigation.

Simultaneously, the government is building an integrated digital land-information system to eliminate double allocations and resolve boundary disputes.

Ncube cautioned financial institutions that title deeds must complement, rather than replace, sound credit evaluation, emphasising that default procedures must remain predictable and legally enforceable.

“A title deed is a necessary enabler of finance, but it is not, by itself, a loan,” Prof Ncube noted.

“Banks lend primarily against the capacity of an enterprise to generate cash flows and repay. Collateral strengthens that proposition by reducing loss in the event of default. Our task is therefore to make the deed legally dependable and the underlying farm enterprise financially viable.”

Drawing on international precedents, the Minister cited China’s certified long-term household contract rights and Mozambique’s Direito de Uso e Aproveitamento da Terra system as evidence that clear, durable, and transferable usage rights can mobilise investment without compromising underlying constitutional land ownership.