Interfresh Set for Compensation Windfall Over Gazetted Mazowe Dam Ownership
Former Zimbabwe Stock Exchange-listed horticultural company, INTERFRESH stands poised for a significant windfall following the recent gazetting of Mazowe Dam in Mashonaland Central province as a state asset, according to sources revealed to the Zimbabwe Independent.
The company initially acquired 60% control of Mazowe Dam years ago from Anglo American Corporation, which originally constructed the vital infrastructure in 1918. The remaining ownership stake was held by the Government of Zimbabwe.
However, in 2018, the government gazetted the facility as a state dam, thereby asserting its rights to assume full control over the 39.35-million cubic meter water reservoir.
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Sources close to the matter informed the Zimbabwe Independent this week that Interfresh is entitled to compensation in light of the government’s move.
According to AMH, under the US$3.5 billion Global Compensation Agreement (GCA) framework signed between the government and former commercial white farmers in 2020, compensation will be forthcoming. This agreement was established following the acquisition of land from white farmers during the tumultuous land redistribution exercise starting in 2000.
Notably, Interfresh itself suffered significant losses during the land redistribution process, with prime land holdings being acquired by top government officials.
Marjorie Munyonga, spokesperson for the Zimbabwe National Water Authority (Zinwa), affirmed that following the gazetting of Mazowe Dam, Interfresh is eligible to receive compensation under the established framework.
“The legal effect of this development was for any use of the water in the dam to be subject to approval by Zinwa,” Munyonga said.
“The gazetting of the dam in itself is meant to ensure the fair and equitable utilisation of water from Mazowe Dam.
“The water agreement system is designed to ensure equity in the allocation and utilisation of the country’s water resources as with all other dams managed by Zinwa.”
Munyonga stressed that as of 2018, the government became the rightful owner of Mazowe Dam, with its previous beneficiary, Interfresh, set to receive compensation in accordance with the GCA (Global Compensation Agreement).
“All gazetted dams are owned by the government and managed by Zinwa in terms of the law and the provisions of the Global Compensation Agreement,” the Zinwa spokesperson said.
Munyonga refrained from disclosing the exact compensation amount entitled to Interfresh.
According to Interfresh’s board chairperson, Mahomed Jassat, the authorities have not yet revealed the comprehensive figures regarding the compensation.
