Zimbabwe’s government has taken a significant step towards addressing its land reform program by paying $3.1 million to former white farmers as compensation for land improvements. This payment is part of the Global Compensation Deed (GCD) signed in 2020, which aims to compensate 740 farms approved by the Land Compensation Committee.
The compensation details are as follows: the $3.1 million payment represents 1% of the total $3.1 million claim value for this batch of farms. The remaining compensation will be paid through US dollar-denominated Treasury bonds with a 2% interest rate and maturity periods of 2-10 years. These bonds are tax-exempt, tradable, transferable, and have liquid and prescribed asset status.
This effort is linked to Zimbabwe’s wider reform and re-engagement agenda, aimed at addressing longstanding debt and arrears issues. By settling these arrears, the government hopes to access long-term capital for infrastructure development and significant investments. The government has allocated $10 million in the 2025 National Budget for GCD-related compensation, demonstrating its commitment to the reform agenda.
The compensation process has received international backing, with organizations like the United Nations Development Programme (UNDP) and the Swiss Government expressing support. The UNDP has welcomed the progress made, stating that these steps are vital for restoring trust, advancing reconciliation, and rebuilding Zimbabwe’s agricultural sector.
In a broader context, Zimbabwe’s compensation plan is part of a larger effort to address past grievances and unlock access to international capital markets. The African Development Bank (AfDB) President Akinwumi Adesina announced a $331 million compensation plan for white former farmers whose land was seized during the 2000 land reforms.
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