Treasury pledges US$900m to ex-farmers

LIVINGSTONE MARUFU

Treasury has committed US$900m towards long-delayed compensation payments to white former commercial farmers,  a major breakthrough in efforts to restore investor confidence and accelerate the country’s arrears clearance and debt resolution programme.

The pledge, agreed between the Ministry of Finance, Economic Development and Investment Promotion and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, represents the most decisive move yet toward fulfilling the US$3.5 bn  Global Compensation Deed (GCD) signed in 2020.

The GCD aims to settle obligations to farmers whose land was compulsorily acquired during Zimbabwe’s early 2000s fast-track land reform programme.

The latest development was confirmed by  Andrew Pascoe, Chairperson of the Compensation Steering Committee of the Commercial Farmers Union (CFU), who told Business Times that discussions with the government had reached an advanced stage, with the Treasury agreeing to a near-term payment of US$900m.

“We have made significant progress in our discussions with the government as the Treasury and Lands Ministry agreed to make a commitment of US$900 million in the near future, with 1% of that coming as cash and the remainder paid through US dollar-denominated Treasury bonds listed on the **Victoria Falls Stock Exchange (VFEX),” Pascoe said.

He added that initial US dollar cash payments had already been made to signed-up Former Farm Owners (FFOs), describing the development as “a turning point” in restoring trust between the government and dispossessed farmers.

Pascoe said the government’s follow-through on this latest pledge would strengthen goodwill under the Structured Dialogue Platform (SDP) — a key mechanism driving Zimbabwe’s Arrears Clearance and Debt Resolution Process with international creditors and development partners.

Efforts to obtain comment from Finance Minister Professor Mthuli Ncube and permanent secretary George Guvamatanga were unsuccessful.

Under the GCD framework, each Former Farm Owner will receive 1% of their compensation in cash, with the remainder to be settled via US dollar Treasury bonds listed on the VFEX.

The government has already allocated US$10 million for compensation in the 2025 National Budget, with further funding expected once the US$900m tranche is formalised.

Multiple analysts  have described Treasury’s US$900m  pledge as a potential turning point in Zimbabwe’s re-engagement efforts. They argue that credible implementation could help rebuild confidence among international creditors, investors, and the farming community, long seen as the benchmark for property rights restoration and policy credibility.

If fully implemented, the payment would represent the largest single compensation tranche since the GCD was signed and a critical milestone for Zimbabwe’s economic reform and re-engagement agenda.