Parliamentarians call for communal leaseholds to qualify for bank loans

Some National Assembly members want leaseholds in communal areas to be bankable, as the current law only permits it in commercial areas.

This comes after former finance minister Iipumbu Shiimi said one of the flagged issues in the long-awaited land bill at the 2018 land conference was the bankability of leaseholds in communal areas.

Shiimi was addressing the land bill in parliament on Wednesday, which also seeks to prohibit the acquisition of land by foreigners.

“People felt that if I have a property here, even if I have a leasehold, I can go to the bank, get money, and develop the land or the property. But our colleagues in the communal areas do not have that right. One of the resolutions of the land conference is to make leaseholds in communal areas bankable,” he said.

Shiimi said development at Aussenkehr, where grapes are now produced, would not have been possible many years ago as the land was barren.

He said if communal lands can be given secure tenure, leaseholds in communal areas can be made bankable.

Although the land bill tabled on Tuesday addresses some of these aspects, Shiimi proposed an amendment to section 40 to explicitly make leaseholds in communal areas bankable.

According to him, this would enable communal areas to attract more economic activities, create jobs, and provide tenure security in terms of leaseholds.

“These are not customary land rights, but leaseholds that are approved by the traditional authorities, the land boards, and the ministry,” Shiimi said.

Swapo parliamentarian Modestus Amutse backed the move, saying bankable leaseholds would allow communal landowners to use a portion of their land as collateral.

He said he believes this will end a system that perpetuates generational poverty for generations.

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