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Zimbabwe plans to pay $331 million to White former farmers whose land was seized in 2000 as part of efforts to restructure its $21 billion debt, reported <a href="https://www.bnnbloomberg.ca/investing/2024/11/25/zimbabwe-to-pay-ex-farmers-331-million-in-move-to-rework-debt/">Bloomberg</a>.
Speaking at a debt conference with the nation’s creditors in the capital, Harare, African Development Bank President Akinwumi Adesina said that Zimbabwe has identified at least 439 former landowners as beneficiaries for the financial settlement, with $35 million allocated in this year’s budget to begin payments.
He said the debt will be settled through bonds, with the first step of payments set to begin soon.
In 2022, President Emmerson Mnangagwa enlisted the help of Adesina and former Mozambican President Joaquim Chissano to lead talks with creditors, including the World Bank and the Paris Club.
Zimbabwe has struggled with a $21 billion debt, much of which is in arrears, preventing the country from accessing financing from international lenders like the IMF. Said Adesina:
<blockquote>
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.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Zimbabwe owes a lot of money and wants to pay back some of it to White farmers they took land from. They will pay $331 million through bonds. This will help restructure their $21 billion debt. The first payments will start soon. The president asked for help from the African Development Bank to negotiate with creditors. Zimbabwe's debt has caused problems getting loans from international lenders. Everyone wants to help Zimbabwe become better for its people.

Zimbabwe Set To Begin US$331 Million Payment To White Former Farmers

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>

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

Zimbabwean white former farmers have rejected the Government’s new compensation proposal of paying in government securities over a 10–year period.
When the agreement was signed in 2020, the government initially wanted to offer payment terms of 20 years but has since decided to expedite the process.
A source privy to the information told <a href="https://businesstimes.co.zw/ex-farmers-reject-govt-deal/">Business Times</a> that the former farm owners want urgent cash payment as most of them are now in their 80s. Said the source:
<blockquote>
Ex-farmers have rejected the Treasury Bonds as they need cash payments with much shorter periods which allow them time to plan with their money due to their age profiles which are between the 80s and 90s.
For that reason, they are not taking any deal which does not include cash in the shortest possible time.
</blockquote>
In February this year, Finance and Economic Development Minister Mthuli Ncube, said the compensation will be financed through a Treasury bond, which will have prescribed-asset status and not be liable to any form of taxation as a way to entice investors.
He said farmers will hold a referendum on the matter soon and the bond will be issued once outstanding details are finalised.
Finance and Economic Development deputy minister Clemence Chiduwa told <a href="https://businesstimes.co.zw/ex-farmers-reject-govt-deal/">Business Times</a> that engagements between the parties are continuing. He said:
<blockquote>
At the moment, I am not aware of this position but what I know is that there were some engagements this week and an agreed position will be reached soon as both parties continue to engage to find common ground for compensation to take place.
</blockquote>
Business Times said they could not get a comment from Commercial Farmers Union president Andrew Pascoe as his mobile number went unanswered.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Former Commercial Farmers Reject Revised Govt Deal

White former commercial farmers, whose land was compulsorily acquired during the fast-track resettlement programme, have expressed worry about the new payment terms offered by the government.
Last month, the Government proposed new payment terms to compensate the farmers for improvements made on the farms before they were seized at the turn of the Millenium for re-distribution.
Commercial Farmers Union (CFU) president Andrew Pascoe last week said the proposed new payment terms are “completely” different from schedules outlined in the initial deal, also known as the Global Compensation Deed signed in 2020.
Under the original agreement, the farmers were to receive a total of US$3.5 billion between 2020 and 2024.
Half the money had to be paid during the first year, followed by four US$437.5 million annual instalments.
The Government, however, failed to fulfil its obligation. Said Pascoe:
<blockquote>
We have engaged our financial and legal advisors and our biggest worry is that the compensation was going to be much faster than the new terms.
We have proposed some safeguards, which we want to be included in new payment terms; we are waiting for a response from the Government so that discussions can start.
But the major issue is that we want to see if the Government can provide additional safeguards.
</blockquote>
Pascoe did not disclose the finer details citing confidentiality and protocol issues.
Finance and Economic Development Minister Mthuli Ncube said in the 2023 Budget Statement in November last year the Government was still on course to raise the funds.
He said US dollar Treasury bonds would be issued this year to raise US$3.15 billion. | <a href="https://www.businessweekly.co.zw/govt-white-farmers-head-for-showdown/">Business Weekly</a>

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