Zimbabwe Steps Up Compensation Of Former White Farmers With US$508 Million In Treasury Bonds
More than 600 former commercial farmers have received compensation from the Zimbabwean Government as the country continues efforts to settle outstanding obligations arising from the land reform programme.
Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe Mnangagwa told Parliament that Treasury bonds worth US$508.8 million had already been issued, alongside millions of dollars in cash payments.
The disclosure was made after Manicaland Senator Brian James asked for details of farmers who had been compensated and the amounts they had received.
Also Read: US$40 Million Paid To Foreign Farmers As Zimbabwe Accelerates BIPPA Compensation Drive
Compensation Covers Thousands Of Former Farm Owners
According to The Herald, Zimbabwe agreed to compensate about 3,500 former commercial farmers under the Global Compensation Deed signed in 2020.
The agreement provides for US$3.5 billion to be paid for improvements made on farms compulsorily acquired during the fast-track land reform programme.
The arrangement distinguishes between compensation for improvements and compensation for the land itself. Farmers affected by the fast-track programme are being compensated for improvements, while those whose properties were protected under qualifying BIPPAs are entitled to compensation for both the land and improvements.
How The Payments Have Been Distributed
According to Mnangagwa, the first two batches account for the US$508.8 million in Treasury bonds already issued.
The first group consisted of 378 claimants, who received cash upfront payments of US$3.19 million and bonds valued at US$305.47 million.
Another 245 claimants in the second batch received US$2.09 million in cash and Treasury bonds worth US$203.29 million.
A third batch, comprising 258 claimants, has so far received US$2.15 million in cash. Its Treasury bonds are yet to be issued and will be processed in line with the agreed framework.
Overall, the three batches account for cash upfront payments of about US$7.4 million.
Farmers Could Trade Bonds Before Maturity
The compensation is not being delivered solely through immediate cash payments. The Treasury bonds carry a fixed 2 percent annual coupon and have a 10-year maturity period.
The Government has also indicated that it intends to work with the Victoria Falls Stock Exchange to list the bonds, potentially allowing beneficiaries to sell them if they need access to funds before maturity.
The bonds are also classified as liquid assets and have prescribed asset status, which allows them to potentially be held by institutional investors such as pension funds.
Payments Part Of Wider Debt Resolution Efforts
The compensation programme comes as the Government continues efforts to address historical financial obligations and strengthen its arrears clearance and debt-resolution strategy.
The Government began compensating BIPPA-protected farm investors in February, extending the process to investors whose properties had been protected under investment agreements ratified before the 2000 land reform.