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 Reuters.
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:
The dialogue process is working and will help us in clearing our arrears eventually.
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.
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