Govt disburses US$10.2m to ex-farmers

LIVINGSTONE MARUFU

The Government of Zimbabwe (GoZ) has disbursed US$10.2m to white former commercial farmers whose properties were acquired under the country’s fast-track land reform programme, Business Times can report.

The move is a step towards honouring commitments under the US$3.5bn Global Compensation Deed (GCD).

Signed in 2020, the GCD provides a framework for compensating former farm owners for improvements made on farms compulsorily acquired during the land reform programme of the early 2000s.

The latest payments cover 378 of the 750 farms whose claims have so far been processed. While the amount paid represents less than 3% of the US$311m value of the first batch of approved claims, it signals tangible progress in the government’s efforts to address one of Zimbabwe’s most enduring economic and diplomatic issues.

The development was confirmed by Andrew Pascoe, chairperson of the Compensation Steering Committee of the Commercial Farmers Union (CFU), who welcomed the disbursements.

“Over the last few months, the GoZ has paid US$10.2m towards compensation for improvements,” Pascoe said.

He added:”We are happy that whilst some of the payments have been a little late, the Government has paid in line with the commitments it made in the Farm Compensation Agreement signed by the Honourable Minister of Finance in December 2023,” Pascoe said.

Although the disbursed amount remains modest relative to the total compensation obligation, the payments are likely to be viewed positively by international stakeholders monitoring Zimbabwe’s reform agenda.

Resolving compensation claims has long been regarded as a critical component of the country’s debt resolution strategy, economic reform programme and broader efforts to re-engage with international creditors and investors.

The payments also underscore the government’s stated commitment to honouring agreements reached with former farm owners, a process widely seen as essential to strengthening investor confidence and restoring confidence in property rights.