Zimbabwe Reaches New Compensation Agreement with Over 1,300 Former White Farmers
Business Politics Zimbabwe

Zimbabwe Reaches New Compensation Agreement with Over 1,300 Former White Farmers

In a significant development addressing long-standing land disputes, Zimbabwe’s government has secured agreement from more than 1,300 former white commercial farmers on a revised compensation plan, as announced by Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube.

Key Points of the Agreement

  • The deal compensates farmers for improvements made on properties acquired during the early 2000s land reform program.
  • Over 1,300 former commercial farmers have signed the revised agreement.
  • Administrative payment processes have begun.
  • The government has initiated a verification process for farms protected by Bilateral Investment Protection and Promotion Agreements (BIPPAs).

Background and Context

  • The land reform program, beginning in the early 2000s, saw about 5,000 white farmers lose their land.
  • An initial agreement, the Global Compensation Deed, was reached in April 2021, promising US$3.5 billion in compensation.
  • 95% of 2,896 farmers supported the initial deal.
  • Funding challenges led to delays in meeting compensation commitments.
  • A revised plan introduced in 2023 faced some opposition, with critics arguing it didn’t represent all affected farmers.

Constitutional and International Implications

  • Zimbabwe’s Constitution mandates compensation for both “indigenous” Zimbabweans and white farmers with BIPPA-protected land.
  • The compensation is a crucial element of Zimbabwe’s debt clearance strategy, supported by the African Development Bank (AfDB).
  • The government has established a Structured Dialogue Platform (SDP) to discuss economic and governance reforms with creditors and development partners.

Ongoing Negotiations and Future Plans

  • Negotiations for a Staff Monitored Programme (SMP) with the International Monetary Fund (IMF) are ongoing, expected to conclude by year-end.
  • The government is seeking a ‘wet’ SMP to support vulnerable groups, focusing on social protection, education, health, agriculture, food security, and climate change.

Minister Ncube reported progress under the SDP, highlighting the transfer of all Reserve Bank of Zimbabwe liabilities to the Treasury. This agreement marks a crucial step in Zimbabwe’s efforts to address historical land disputes and improve its international economic standing.

The success of this compensation plan could play a significant role in Zimbabwe’s economic recovery and its relationships with international financial institutions and Western nations, potentially paving the way for the lifting of economic sanctions.

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