US$3.1 Million Disbursed to Former Commercial Fa...

US$3.1 Million Disbursed to Former Commercial Farmers

Zim Now Writer

Government has disbursed an initial US$3.1 million to a group of 378 former white commercial farmers whose land was acquired during the early 2000s land reform program. This payment is the first step in addressing longstanding disputes over land seizures.

The compensation is part of a broader agreement made in 2020, under which the government committed to compensating farmers for improvements made to the land, excluding the land's intrinsic value. The initial cash payment represents 1% of the total US$311 million allocated for this batch of farmers. The remaining 99% will be issued through USD-denominated Treasury bonds, with maturities ranging from 2 to 10 years and a 2% annual coupon rate.

Finance Minister Mthuli Ncube highlighted that this initiative demonstrates the government's commitment to its reform agenda and aims to rebuild trust with international creditors. By addressing these compensation obligations, Zimbabwe hopes to clear its arrears and unlock long-term funding from institutions like the World Bank and the African Development Bank.

Deputy Chief Secretary in the Office of the President and Cabinet, Willard L. Manungo, described the milestone as a strong signal of Zimbabwe’s commitment to economic reforms.

“This development is a clear demonstration of the Government’s commitment to its reform agenda and enhances Zimbabwe’s position for engaging with the international community,” he said.

Andrew J. Pascoe, Chairperson of the Compensation Steering Committee, said the compensation marked the end of a long journey.

“This is a historic moment. These cash payments are the result of nearly two decades of negotiations. We have worked hard to reach a fair agreement for former farm owners,”said Pascoe.

The compensation initiative is a key part of Zimbabwe’s broader Arrears Clearance and Debt Resolution Process, which seeks to restore financial stability and unlock international funding for development.

Additionally, the government has begun compensating foreign farmers protected under Bilateral Investment Promotion and Protection Agreements. These agreements require compensation for both land and improvements. An initial allocation of US$20 million has been set aside for this purpose, targeting farmers from countries such as Denmark, Germany, the Netherlands, Switzerland, and the former Yugoslavia.