Zimbabwean farmers who cannot afford to pay their children’s school fees will be able to offer goats as collateral for loans instead of paying directly in cash if a draft law is passed by parliament.
A former deputy finance minister David Chapfika, told DPA on Thursday: “We are saying, you can go to the bank while waiting for your crop to mature and get fees while using your domestic animals as collateral.
“When the crop matures, you sell it and pay up the loan,” Chapfika, who belongs to the ruling party Zimbabwe African National Union – Patriotic Front (ZANU–PF).
The possibility of paying in goats or cattle is part of draft legislation on using the movable property as collateral for loans that is being considered by parliament.
The bill would not, however, compel any bank or another lender to accept these assets, constitutional law professor Fadzayi Mahere said.
Primary and Secondary Education Minister Lazarus Dokora earlier told the newspaper Sunday Mail that parents could also work for schools instead of paying tuition fees.