GROUP 6

LAND TENURE
INVESTMENT
WILLARD MASEKO
LOVEMORE MATAPURA
POLITE MUZAMANI
JANET L MLAMBO
NOREST MANGOI
TUTSIRAI MAKUVATSINE
AUXILLIA ZISHIRI
OUTLINE OF THE PRESENTANTION

 LEGAL DOCUMENTS
 OFFICES THAT ISSUE LEGAL DOCUMENTS
 DURATION
 TRANSFERABILITY
 SECURITY OF TENURE
LEGAL DOCUMENTS

 OFFER LETTERS
 A1 TEMPORARY PERMIT
 A2 SETTLEMENT PERMIT
 TITLE DEED
 99-YEAR LEASE
OFFER LETTER

 Post independence, different land tenure systems were created, an offer letter being one of
them.
 This is issued to A1 farmers by the District Administrator in confirmation with the
Ministry of Lands
 These A1 farms are small scale farmers living in a villagised manner with the capacity to
produce self-sufficient products with a possibility of producing more for market.
 Offer letters do not give ownership rights to the holder thus ownership still vests in the
state in terms of the Constitution of Zimbabwe. Holders therefore enjoy usurfuctory rights
to use, occupy and enjoy fruits.
CONTINUATION

 Offer letters do not provide for duration of the letter implying that it is indefinite. Holders
live in fear of withdrawal or expropriation.
 Holders of offer letters are not immune from compulsory acquisition as the offer letter can
be “withdrawn” by the Minister any time with no compensation for both loss of land and
developments being paid by the government. This consequently hinders any investments
in the land.
 Offers letters do not allow transfer of rights to a third party except to family in inheritance
issues. Holders of offer letters cannot cede, lease, hypothecate their land rights. The net
effect is that a holder can use such a document as a collateral to secure loans with
financial institution hence land is a dead capital and no investment can be made.
A2 SETTLEMENT PERMIT

 These permits are offered to A2 Farmers which are medium or large scale farmers or investors with the sizes
ranging from 10 hectares and above depending in the region in which the farm is situated as provided for in the
S1 40/20 New Farm Sizes Natural Regions .
 These permits are issued by Ministry of Lands, Agriculture, Fisheries, Water and Rural Development in terms of
section 21 (2) of the Land Commission Act of Zimbabwe.
 These permits replaced offer letters in November 2021.
 They are durable for 99 years though not 99 year leases- this is an initial land tenure title given to an A2 farm
holder in terms of the Land Commission Act.
 Holders of permits have rights to use, occupy and enjoy fruits, however in terms of section 7 (1) of the
Agricultural Land Settlement Permits Regulations they do not have rights to cede, assign, lease without the
consent of the Minister of Lands. Thus they are non bankable with financial institutions as collateral and they are
not salable. It can only be transferred to families through inheritance subject to the consent of the Minister
 This therefore impedes investments as land is dead capital.
CONTINUATION

 The permit can be withdrawn by the Minister anytime, this implies that they are not
secure. Where a permit is cancelled or terminated the holder is entitled to compensation
for developments made unlike with offer letters.
 These holders are also not immune from expropriation as provided for by Sect 72 … of
the Constitution of Zimbabwe although the requirements of expropriation must be met.
 The mere fact that it can be withdrawn, cancelled or compulsorily acquired makes the
legal document insecure and does not attract investors.
 The A2 land permit has many restrictions. If Zimbabwe is to attract foreign direct
investment, foreigners must be confident that they will have sure title to any property
,including land and buildings ,which they may acquire here
TITLE DEED

 A Title deed is a registered legal document which evidences ownership in respect of a defined piece
of land or building (immovable property)
 Types of title deeds are outlined below:

i. deed to transfer
ii. deed of grant;
iii. certificate of registered title.
 Title deeds offer absolute ownership of immovable property which can be enforced against anyone,
this is known as a real right.
 The duration of a title deed is indefinite unless the holder decides to sell or encumber the property
or it is compulsorily acquired.
CONTIUATION

 Land held under freehold title falls under section 71 of the Constitution hence
upon expropriation holders are entitled to compensation for loss of land and
developments made.
 A title deed entitles the holder a right to use, possess, alienate, hypothecate or
destroy the property owned. It gives the owner exclusive rights over the property.
Title deed entitles the holder to mortgage the registered property and get a loan
from a Bank or a Finance Lender, therefore it promotes investments.
 Land held under a title deed can be transferred on open market.
LEASES

 a lease is a contractual agreement calling for the user to pay rental to the owner for the
use of an asset for a period of time.
 it outlines the terms under which one party agrees to rent an asset.
 it creates personal right, however long leases are registrable in terms of 65 of the Deeds
Registry Act which provides that ‘…..any lease or sub-lease intended or required to be
registered in a deeds office shall be executed by notarial deed by the lessor and the lessee
…..” this therefore creates a real right which is enforceable against the whole world.
 under agricultural land in Zimbabwe there are three types of leases which are short term,
middle term and long term leases depending on the type of investment to be ventured into.
CONTINUATION

 The Agricultural Land Settlement Act [Chapter 20:01] Rural Land Act [Chapter 20:18]
are the 2 pieces of Legislation that deal with leases with the former being for large-
commercial farms and the later for A1 Resettlement schemes.
99 year lease

 This document is an aftermath of the fast track land redistribution.

 It is entered into between the farmer and the Minister of Lands. With the lease holder enjoying the rights to
use, occupy and enjoy fruits.
 It is issued to A2 land farmers who benefited from the land redistribution programme.
 It is meant to be the main land tenure document.
 The lease provides that it is a registration clause and require that the land be surveyed.
 The lessee is not allowed to hypothecate or transfer the lease without the Minister’s approval. The Minister
has the discretion to approve or not. This reduces the lease and makes it non-transferable.
 In terms of the lease one can use improvements on the land as collateral with financial institutions and
cannot use the land as collateral this is impractical as the improvements made on the land are for the land.
The improvements made on the land are of zero market value in the event of default by the lessee the
financial institution cannot take the land..
CONTINUATION

 To that extent financial institutions are now offering loans based on business viability.
This therefore impedes investments as farmers require capital for them to operate.
 The Minister can terminate the lease upon giving ninety days notice to the lessee at the
same time it is silent on the compensation on the developments. This makes the 99 year
period meaningless and affects security of tenure. This therefore impedes long term
investment as investors will be living at the mercy of the executive who at any given time
revoke the lease.
 Holders of 99-year leases are not exempted from compulsory acquisition although they
must be compensated for developments made on the property although it is silent on the
compensation regime and it is also silent on the procedure to be adopted by the holder if
they are not satisfied with the compensation offered.