Zimbabwe begins land reform payouts – Farmers get first cut of $311m

Harare – The Government of Zimbabwe has commenced compensation payments to 740 white commercial farmers who were displaced during the controversial 2000 land reform programme.

Under the terms of the Global Compensation Deed, a total of US$311 million has been set aside to compensate the farmers for the loss of their land.

As of now, US$3.1 million, representing 1% of the total compensation package, has been paid to 378 processed claims.

The compensation initiative marks a significant step in the country’s efforts to resolve the long-standing issue of land redistribution, which has been a major point of contention in Zimbabwe’s post-independence history.

Giving an update on the progress, the Minister of Finance, Economic Development and Investment Promotion, Mthuli Ncube, reaffirmed the government’s commitment to continue implementing reforms that are key to clearing the country arrears and resolving the debt burden, a statement said.

“The payments will continue. We are very serious about this,” the minister said.

The Government of Zimbabwe, under the Global Compensation Deed, has begun compensating 740 white commercial farmers who lost their land during the 2000 land reform programme. So far, US$3.1 million, representing 1% of the total US$311 million, has been paid out to 378 processed… pic.twitter.com/lSoB4gWxGN

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He added, “By settling our arrears, we can tap into the long-term capital, which is essential for infrastructure development and other significant investments. This is not just crucial for the Zimbabwean government; it also impacts our private sector, which faces restrictions from creditors due to these arrears. Lifting these caps will facilitate access to foreign capital, making it easier to obtain financing to support our industries and create meaningful jobs for our citizens.”

The land reform programme, which began in 2000, saw the government seize land from white commercial farmers and redistribute it to Black Zimbabweans.

While the move was seen as a necessary correction of historical land imbalances, it led to economic turmoil, including a sharp decline in agricultural production and international sanctions.

The Global Compensation Deed, signed in 2020, was designed to address the grievances of the farmers who lost their land. The government’s commitment to compensating the farmers is seen as an attempt to restore property rights while balancing the need for land reform.

The initial payout is being made to farmers whose claims have been processed, and the government has assured that the full compensation will be paid over time.

This development has garnered mixed reactions, with some hailing it as an important step towards reconciliation, while others argue that the process is long overdue and insufficient in addressing the broader socio-economic disparities created by the land reform programme.

The compensation initiative is expected to continue over the coming months as Zimbabwe works to implement the terms of the agreement.