HARARE, – The Zimbabwean government will begin disbursing $20 million this month as initial compensation to foreign white and local Black farmers whose land was seized during the land invasions of the early 2000s.
The compensation plan is part of the government’s effort to revitalize the country’s once-thriving agricultural sector and set the foundation for a long-promised economic recovery, Finance Minister Mthuli Ncube announced on Friday.
The payout, which was allocated in Zimbabwe’s 2024 national budget, is a significant step toward reconciling the losses incurred during the often-chaotic farm seizures initiated by former president Robert Mugabe. At the time, the Zimbabwean government appropriated thousands of highly productive farms, most of which were owned by white commercial farmers whose ancestors had forcibly taken the land from Black Zimbabweans during the colonial period. The controversial land reform program, which began in 2000, led to a collapse in agricultural output and economic decline, and many of the seized farms were handed to those with connections to the ruling Zanu-PF party.
The initial compensation will be directed toward a group of foreign white farmers from countries including Belgium and Germany, as well as 400 Black Zimbabweans who also lost their land during the invasions. This group’s compensation is separate from a much larger $3.5 billion settlement announced in 2020 for 4,000 white Zimbabwean farmers, a deal that has been delayed due to the country’s financial difficulties.
Minister Ncube stated that this compensation scheme is a key element of the government’s broader strategy to re-engage with Western governments and international financial institutions. President Emmerson Mnangagwa, who took power after Mugabe’s ouster in a 2017 coup, has sought to repair Zimbabwe’s strained relations with the West, resolve the country’s foreign debt issues, and reignite economic growth. However, Zimbabwe’s recent elections, which were widely regarded by observers as neither free nor fair, have hindered efforts to gain donor support.
“The dialogue process is progressing well and will help us eventually clear our arrears,” Ncube said, referring to the ongoing efforts to secure international assistance.
Zimbabwe has been excluded from the global financial system for over two decades after defaulting on its international loans, which has limited its access to much-needed development funding. The country is now pursuing a staff-monitored program with the International Monetary Fund (IMF) as the first step towards debt relief. Ncube revealed that an IMF delegation is expected to visit Harare within the next two weeks to advance discussions.
“A staff-monitored IMF program is essential to assist us in clearing our debt arrears, which have been a major burden on our economy,” Ncube added.
Zimbabwe’s external debt currently stands at $12 billion, with outstanding payments owed to the World Bank, African Development Bank (AfDB), the Paris Club, and other private creditors.
The compensation payments are seen as a positive move in addressing historical grievances, but restoring Zimbabwe’s economic stability will require further comprehensive reforms and successful debt negotiations with international lenders.
Source: Reuters
