Zimbabwe has announced plans to compensate White former farmers $331 million for land seized during the controversial land reform program initiated in 2000.
The move, seen as part of broader efforts to restructure the nation’s $21 billion debt, was disclosed during a debt conference held in Harare, the capital.
African Development Bank (AfDB) President Akinwumi Adesina revealed that the government has identified 439 former landowners as eligible for the financial settlement.
To kickstart the payments, $35 million has been allocated in Zimbabwe’s 2024 budget. Adesina explained that the compensation would be delivered through bonds, with initial payments expected to commence soon.
The land reform program under former President Robert Mugabe involved the redistribution of land from White farmers to Black Zimbabweans, aiming to address colonial-era land ownership imbalances.
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However, the program was widely criticized for being chaotic, violent, and economically disruptive, leading to a significant decline in agricultural productivity.
The compensation plan is part of Zimbabwe’s commitment to addressing outstanding grievances while restoring international confidence. In 2022, President Emmerson Mnangagwa enlisted Adesina and former Mozambican President Joaquim Chissano to lead negotiations with creditors, including the World Bank and the Paris Club.
Zimbabwe’s $21 billion debt burden, much of which is in arrears, has severely limited the country’s access to international financial support. Institutions like the International Monetary Fund (IMF) have withheld funding, citing Zimbabwe’s failure to service its debt and implement meaningful economic reforms.
Speaking at the conference, Adesina emphasized Zimbabwe’s potential and the global importance of addressing its challenges:
“We can all agree that we must play our part to correct this anomaly by giving a new lease of life to this nation and its people. Zimbabwe is too critical for the world to ignore.”
The $331 million compensation plan is seen as a critical step in reestablishing Zimbabwe’s credibility with international creditors and stakeholders. The plan aligns with the government’s broader strategy to rebuild relationships with global lenders, normalize debt repayments, and attract foreign investment.
By compensating the displaced farmers, the government also aims to resolve lingering disputes over property rights, which have deterred investment in the agricultural sector.
Despite these steps, significant challenges remain. Zimbabwe’s economy continues to struggle with high inflation, currency instability, and limited fiscal space. Critics argue that the compensation process may strain the national budget further unless accompanied by robust economic reforms.
Nevertheless, the decision to settle with the former farmers signals a potential turning point for Zimbabwe. It demonstrates a willingness to reconcile with the past and chart a path toward economic recovery while addressing the grievances of both domestic and international stakeholders.
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