October 18, 2024 | 05:50 PM ET |
Harare: Zimbabwe has announced intentions to pay local and foreign white farmers who lost land and property during the contentious land grabs that started more than 20 years ago, marking a significant change in policy. This program is a component of larger attempts to stabilize the agriculture industry and attempts to rectify past injustices resulting from colonization.
The land redistribution program, initiated by former President Robert Mugabe in 2000, aimed to rectify colonial-era land inequities but led to violent upheaval and the displacement of around 4,000 white farmers. The chaotic program significantly impacted Zimbabwe’s agricultural productivity, transforming the once-thriving nation into one reliant on foreign aid for food.
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Finance Minister Mthuli Ncube announced that the government approved compensation applications totaling $351.6 million for local farmers and $196.6 million for foreign claimants. However, only 1% of this amount, approximately $3.5 million, will be paid in cash to local farmers; the remainder will be compensated through treasury bonds. Foreign farmers will receive an initial $20 million to be distributed among 94 claimants from various European countries.
The compensation for local farmers focuses on infrastructure improvements, including buildings and irrigation systems, rather than the land itself, which the government maintains was justly seized. In contrast, foreign farmers will be compensated for both land and infrastructure, reflecting international agreements protecting foreign investments.
These compensation plans come at a critical time for Zimbabwe, which is restructuring its $21 billion debt while also striving to revive its agricultural sector. Recent droughts have posed significant challenges, even as the country attempts to rebuild its agricultural capacity.
The announcement follows a 2020 compensation agreement signed by President Emmerson Mnangagwa’s government, which has sought to engage with white farmers and encourage agricultural investment. However, recent policy changes allowing beneficiaries of the land reform program to sell land exclusively to “Indigenous Zimbabweans” have drawn criticism, particularly due to the emergence of politically connected individuals amassing multiple farms.
As Zimbabwe navigates these complex issues, the forthcoming compensation payments, expected in late 2024, will be closely monitored for their impact on national reconciliation and economic stability.