Zimbabwe’s government has made an initial payment of $3 million to white farmers whose farms were seized over two decades ago. This payment is part of a 2020 compensation agreement, where Zimbabwe committed to paying $3.5 billion for seized farmland.
The farm seizures, which took place between 2000 and 2001, were aimed at redressing colonial-era land grabs but led to economic decline and strained relations with Western countries.
The seizures were supported by then-President Robert Mugabe, sparking international condemnation. President Emmerson Mnangagwa, who replaced Mugabe in a 2017 coup, has sought to engage Western governments to restore ties.
The initial payment covers 378 farms, with a total allocation of $311 million. The remaining amount will be paid through US-dollar-denominated Treasury bonds. Compensation only includes “improvements” made on the land, excluding the land itself, which the government claims was unfairly seized by colonialists.
Foreign-owned farms were prioritized under separate negotiations, with payments beginning in January for those protected under bilateral investment agreements.
This move marks a significant step in Zimbabwe’s efforts to restructure its $21 billion debt after defaulting in 1999.
The government has hired advisors to assist with debt restructuring and aims to clear its arrears to improve its global financial reputation. By compensating former farm owners, Zimbabwe seeks to address its long-standing debt challenges and boost economic development.
Source: BBC Africa
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