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The Zimbabwean government says it will compensate local and foreign white farmers who lost land and property during the farm seizures around the year 2000.
Approximately 4,000 white farmers were affected by the land redistribution programme launched by then-president Robert Mugabe in 2000, which turned violent at times.
Finance Minister Mthuli Ncube announced on Wednesday at a meeting with diplomats that the government approved $351.6 million for local white farmers and $196.6 million for foreign claimants, but only 1% of the compensation will be paid in cash.
The remaining compensation will be issued through treasury bonds.
The government has approved payments for 444 former commercial farm owners, compensating them for improvements made to the land before their eviction.
Foreign claimants from countries including Denmark, Germany, Netherlands, Switzerland, and Eastern Europe will share an initial $20 million. Said Ncube:
<blockquote>
The government allocated $35 million in the 2024 budget for compensating former farm owners who are part of the Global Compensation Deed signed in 2020.
</blockquote>
The compensation for local farmers covers infrastructure such as buildings and irrigation equipment, not the land itself.
Foreigners covered under investment agreements will be compensated for both land and infrastructure.
The payments are expected in the last quarter of 2024.
The payments are vital in the southern African nation’s bid to win over creditors for the restructure of the $21 billion debt it owes, after defaulting in 1999.
The nation confirmed that it had hired advisers to help with the restructure, including Global Sovereign Advisory and Kelper-Karst, with support from the African Legal Support Facility.
In 2020, President Emmerson Mnangagwa’s government signed a compensation deal with white farmers, encouraging them to apply for new land.
All farmland is now government-owned and leased to occupants.
The government plans to allow beneficiaries of the reform to sell land only to “Indigenous Zimbabweans,” sparking criticism.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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The government of Zimbabwe is going to pay over 400 white farmers for improvements they made on their land before being evicted. The compensation includes cash and treasury bonds. These farmers lost their land during a violent redistribution program in 2000. Foreign farmers from countries like Denmark and Germany will also be compensated. This is part of Zimbabwe's plan to restructure its debt. All farmland is now owned by the government, and they will only allow Indigenous Zimbabweans to buy land in the future. Payments are expected in late 2024.

Zimbabwe To Compensate Over 400 Evicted White Farmers For Land Improvements

The Zimbabwean government will pay an initial US$20 million this month to foreign white and local Black farmers who lost land due to farm invasions under former leader Robert Mugabe, Finance Minister Mthuli Ncube said on Friday, reported <a href="https://www.reuters.com/world/africa/zimbabwe-compensates-foreign-local-farmers-over-land-invasions-2024-10-04/">Reuters</a>.
This payment is part of the 2024 budget and aims to restore the country’s agricultural sector and support economic revival.
The collapse of agriculture began when Mugabe initiated the seizure of productive farms in 2000, impacting many white commercial farmers and some Black Zimbabweans.
Most of the farms were owned by Zimbabwean white commercial farmers after colonialists forcibly took them from Blacks early in the 20th century.
The compensation will include foreign farmers from Belgium, Germany, and other countries, as well as 400 Black Zimbabweans.
A separate much larger $3.5 billion compensation scheme for 4,000 white Zimbabwean farmers was announced in 2020, but funds have not been released due to Zimbabwe’s financial struggles.
President Emmerson Mnangagwa is working to engage Western governments to restore relations, resolve foreign debt, and revive the economy, though last year’s elections raised concerns about donor confidence.
Finance Minister Mthuli Ncube indicated that the dialogue process is ongoing and essential for clearing Zimbabwe’s debt arrears. He said:
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The dialogue process is working and will help us in clearing our arrears eventually.
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Zimbabwe is seeking an International Monetary Fund (IMF) staff-monitored program as a first step towards debt relief, with an IMF team scheduled to visit Harare in the next two weeks.
Zimbabwe’s total foreign debt stands at $12 billion, owed to various international financial institutions and private funders.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The government of Zimbabwe will pay $20 million to farmers who lost land because of Robert Mugabe. This money is to help the agricultural sector and the economy. The farm seizures by Mugabe in 2000 affected white and Black farmers. The compensation includes foreign farmers and Black Zimbabweans. President Mnangagwa is working to improve international relations. Zimbabwe is trying to clear its $12 billion debt with help from the IMF. The dialogue process is ongoing to help with clearing the debt. This is good news for farmers who lost their land.

Government To Pay US$20 Million To Farmers Affected By Land Seizures

A federal judge in the United States has rejected Zimbabwe’s bid to avoid paying around $440.3 million in compensation to a European family due to the country’s controversial land reforms. The compensation was awarded by the International Centre for Settlement of Investment Disputes (ICSID) in response to Zimbabwe’s land seizures, which aimed to address colonial-era land grabs.
The court ruling allows two separate lawsuits to proceed. In one case, a German and Swiss family is seeking to enforce a $276.1 million award, while in the other case, two corporations previously controlled by the same family are seeking to realise a $164.2 million compensation award.
Zimbabwe argued that U.S. courts lacked jurisdiction and that the cases should be heard within its own borders based on bilateral investment treaties. However, Zimbabwe’s arguments were unsuccessful as US District Judge, Amit P. Mehta, criticised their misinterpretation of bilateral treaties and confusing positions. Mehta said the Foreign Sovereign Immunities Act (FSIA) doesn’t protect countries from enforcement lawsuits over arbitral awards.
The judge added that the fact that the arbitration took place under Zimbabwe’s treaties with Germany and Switzerland doesn’t require enforcement within the country. The ICSID ruled in favour of the von Pezold family, finding illegal expropriation of their estates and two Zimbabwe-based companies. The von Pezold family owned extensive land holdings, including a tobacco operation and other agricultural ventures, before the Zimbabwe government seized their properties.
<a href="https://www.pindula.co.zw/Fast_Track_Land_Reform_Programme/">The land seizures, which occurred from 2000 to 2001</a>, led to the displacement of more than 4,000 white farmers and have been widely criticised for causing Zimbabwe’s economic decline and strained relations with Western countries. Critics attribute Zimbabwe’s economic troubles and strained relations to the land seizures during the Mugabe era. Under President Emmerson Mnangagwa, a separate compensation scheme has been introduced for the affected white farmers. However, the scheme does not involve returning their farms but offers approximately $3.5 billion for what is described as improvements on the land.
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US Judge Denies Zimbabwe's Bid To Avoid $440.3 Million Compensation For Land Reforms

Zimbabwe has made quarterly token payments exceeding US$100 million to external creditors. The Arrears Clearance Debt Relief and Restructuring Strategy, involving creditors, development partners, and stakeholders, is being led by Dr. Akinwumi Adesina, the President of the African Development Bank, and His Excellency Joachim Chissano, former President of Mozambique.
Zimbabwe has made substantial token payments to various institutions, including over US$60 million to the World Bank, US$36 million to the African Development Bank, over US$5 million to the European Investment Bank, and US$9.6 million to the 16 Paris Club bilateral creditors. Economists view these payments as a demonstration of the government’s commitment to the engagement and re-engagement process, facilitating a reduction in the country’s high country risk.
Commenting on the situation, Development Economist Prosper Chitambara stated that the payments showcase Zimbabwe’s determination to clear arrears and engage with creditors and the international community. ZBC cites him as saying:
<blockquote>
It is a demonstration of Zimbabwe’s commitment to clear arrears, it’s also obviously an important of our reengagement with creditors and the international community, it also helps to reduce the high country risk that has been associated with Zimbabwe.
</blockquote>
Professor Albert Makochekanwa, Director of the Business School at the University of Zimbabwe, emphasised that while the arrears clearance task is formidable, the government’s commitment to making payments sends positive signals about its intentions and fosters a favourable relationship with external financiers. Makochekanwa said:
<blockquote>
The agenda is towards ensuring that the debts are cleared while it may be a mammoth task the fact that there is commitment to pay further sends positive signals about the Government intentions and how they can related with the external financiers and find each other.
</blockquote>
Since the establishment of the Structured Dialogue Platform, five meetings have taken place, including a High-Level Debt Resolution Forum. These gatherings serve as forums for Zimbabwe to implement necessary reforms and engage with relevant parties to address the significant debt overhang effectively.
Zimbabwe currently faces a significant debt burden, with debts and arrears amounting to nearly $8.3 billion. These financial obligations are owed to both financial institutions and individuals. The debt is inclusive of approximately $3.5 billion to farmers who were displaced during the land reform program.
In 2018, Zimbabwe intensified its efforts to address the debt situation when Professor Mthuli Ncube assumed the position of Finance Minister. The country cleared its debts and arrears with the International Monetary Fund (IMF) to establish new credit line facilities. However, the IMF stated that Zimbabwe remained ineligible for financial assistance as it had outstanding obligations to various other financial institutions.
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Zimbabwe Pays US$100 Million To External Creditors

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