The Zimbabwean government is set to disburse an initial payment of US$20 million this month to compensate both foreign white and local Black farmers who lost land due to farm invasions during former President Robert Mugabe’s administration, according to Finance Minister Mthuli Ncube, as reported by Reuters.
This compensation is part of the government’s 2024 budget initiative aimed at revitalizing the nation’s agricultural sector and supporting overall economic recovery.
The decline of Zimbabwe’s agriculture began in 2000 when Mugabe initiated land seizures targeting productive farms, which primarily affected white commercial farmers but also impacted some Black Zimbabweans. Most of the farms seized were previously owned by white commercial farmers, following the colonial era when land was forcibly taken from Black Zimbabweans in the early 20th century.
The upcoming compensation package will include payments to foreign farmers from countries like Belgium and Germany, as well as 400 local Black farmers.
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In 2020, a much larger compensation scheme worth $3.5 billion was announced for 4,000 white Zimbabwean farmers, but funds for this initiative have yet to be released due to the country’s ongoing financial challenges.
President Emmerson Mnangagwa is actively seeking to improve relations with Western governments to resolve issues related to foreign debt and stimulate economic growth, although concerns regarding donor confidence were heightened following last year’s elections.
Minister Ncube highlighted that the dialogue process with international stakeholders is crucial for addressing Zimbabwe’s debt arrears, stating:
“The dialogue process is working and will help us in clearing our arrears eventually.”
Zimbabwe is pursuing a staff-monitored program with the International Monetary Fund (IMF) as a preliminary step toward securing debt relief, with an IMF team scheduled to visit Harare in the coming weeks.
Currently, Zimbabwe’s total foreign debt is approximately $12 billion, owed to various international financial institutions and private creditors.
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