Zimbabwe Commits $331 Million to Compensate White Farmers in Debt Relief Effort

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Zimbabwe has pledged $331 million in compensation to white farmers whose land was repossessed during the controversial land reform program in 2000. The move is part of the government’s strategy to address a crippling debt crisis that has left the country excluded from international financial markets for over two decades.

The land redistribution initiative, led by then-President Robert Mugabe, aimed to correct historical inequalities by redistributing land to Black Zimbabweans. However, the policy displaced numerous white farmers, many of whom lost their homes and livelihoods. The new compensation plan seeks to mend relations with international creditors and pave the way for economic recovery.

African Development Bank (AfDB) President Akinwumi Adesina revealed at a debt conference in Harare that 439 former landowners have been identified as beneficiaries of the compensation. While a clear timeline for the payments remains undisclosed, Zimbabwe has earmarked $35 million from its 2024 budget to begin the process, with payouts to be made through bonds.

President Emmerson Mnangagwa has enlisted high-profile assistance for debt restructuring talks, including AfDB President Adesina and former Mozambican leader Joaquim Chissano. The negotiations involve key creditors such as the World Bank, the Paris Club, and the European Investment Bank.Zimbabwe Commits $331 Million to Compensate White Farmers in Debt Relief Effort

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Zimbabwe’s total debt stands at a staggering $21 billion, with the bulk in arrears. This financial burden has effectively barred the nation from accessing multilateral funding sources like the International Monetary Fund (IMF), leaving it heavily reliant on its central bank for financing.

In addition to the compensation plan, Zimbabwe recently hired Global Sovereign Advisory and Kepler-Karst to guide its debt restructuring efforts. The government is also exploring innovative solutions, such as a Debt-for-Climate swap, to address creditor demands.

Adesina emphasized the urgency of the debt crisis during the conference:

“No one, no matter how strong, can run up a hill with a backpack of sand on their back. Zimbabwe is too critical for the world to ignore.”

The compensation plan represents a critical step toward rebuilding trust with the international community. By addressing longstanding disputes over land reform, Zimbabwe hopes to unlock much-needed financial support and provide its economy with a fresh start.

“We must all play our part to correct this anomaly by giving a new lease of life to this nation and its people,” Adesina added, signaling optimism for Zimbabwe’s economic future.

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