Zimbabwe Government’s Progress on Compensation of Former Farm Owners.

Thursday 10th April 2025

Zimbabwe President H.E Emmerson D Mnangagwa flanked by Zimbabwe’s Finance Minister Hon.Mthuli Ncube Afdb President Dr. A.A. Adesina Ambassador Nuno.

Par inAfrika Reporter

The Government of Zimbabwe has begun fulfilling its commitment to compensate Former Farm Owners (FFOs) under the Global Compensation Deed (GCD) signed in 2020. To date, 740 farms have been approved for compensation by the Land Compensation Committee, with the Government disbursing US$3.1 million for the first batch of 378 farms. This amount represents 1% of the total compensation claim value of US$311 million. In addition, Treasury bonds have been issued for the first batch of farmers, with these bonds offering a 2% coupon and maturities ranging from 2 to 10 years.

The compensation plan, which follows the GCD agreement, involves FFOs receiving 1% of their claim in cash, with the remaining compensation paid through US-dollar-denominated Treasury bonds. This scheme provides farmers with liquid, tradable, tax-exempt assets that are beneficial in the long term.

Zimbabwe’s Finance Minister, Professor Mthuli Ncube, reaffirmed the government’s commitment to paying the compensation and emphasized the importance of this initiative in clearing the country’s debt arrears. He stated that by resolving the arrears, the government could access long-term capital, enabling infrastructure development and creating jobs. Additionally, he highlighted the positive effects this would have on the private sector, which currently faces financing challenges due to these outstanding arrears.

Mr. Willard L. Manungo, the Deputy Chief Secretary in the Office of the President and Cabinet, emphasized that the compensation initiative is a significant step towards Zimbabwe’s reform agenda and debt resolution process. The payment of compensation to FFOs marks a historic moment and contributes to the broader effort to clear Zimbabwe’s arrears and restore economic stability.

Mr. Andrew J. Pascoe, Chairperson of the Compensation Steering Committee, expressed his gratitude to the government, acknowledging that the payments represent a significant step forward for Zimbabwe’s agricultural sector. The compensation process is being implemented under the broader framework of Zimbabwe’s Arrears Clearance and Debt Resolution Process, which is aimed at unlocking external financing to support the country’s development goals.