daniel chigunwe
Oliver Kazunga
A TOTAL of 444 former farm owners have been cleared for payment under the Global Compensation Deed and US$35 million has been allocated in the 2024 national budget to compensate the farmers.
Through the Global Compensation Deed (GCD) signed in 2020, the Government made a commitment to clear the US$3,5 billion debt owed to farmers for improvements on the farmlands acquired just over two decades ago.
In a statement released today, the Ministry of Finance, Economic Development and Investment Promotion said: “Regarding the compensation of former farm owners, so far, 444 farms have been cleared for payment.
“The Government allocated US$35 million in the 2024 budget for compensating former farm owners, who are part of the GCD signed in 2020.
“The farmers will be paid for improvements made on the farms.”
During a technical meeting held on Monday, he said, the Sector Working Group (SWG) co-chairs of the Structured Dialogue Platform on Arrears Clearance and Debt Resolution Process, has highlighted several milestones achieved by the Government in the implementation of reforms under the Arrears Clearance and Debt Resolution process.
“During the meeting, the Government was encouraged to maintain the ongoing dialogue and to accelerate efforts to achieve the set goals and targets outlined in the three matrices of the SWGs as this will ensure that the objectives of the debt resolution process are achieved.
“The SWGs are tasked with focusing discussions on the Government’s implementation of reforms under the three key strategic pillars guiding the process.
“These include economic growth and stability reforms; governance reforms; and land tenure reforms, compensation for former farm owners, and the resolution of Bilateral Investment Protection and Promotion Agreements (BIPPAs),” it said.
And as for the resolution of BIPPAs, a total of 92 farms have been approved for payment.
“The Government set aside US$20 million for compensation of BIPPA farmers in the 2024 Budget. “The BIPPA farmers will be compensated for land and improvements on the farms.
“Only farmers from countries that had signed and ratified BIPPAs by the time of the Land Reform Programme in 2000, are eligible for payment. These countries include Denmark, Switzerland, Germany, Netherlands and Yugoslavia,” it said.
Meanwhile, Zimbabwe’s total public debt is estimated at US$21 billion as at the end of June this year while external debt stood at US$12,3 billion, and domestic debt (US$8,7 billion).
External debt is owed to bilateral and multilateral creditors, with the latter accounting for US$3,1 billion.
“Out of this multilateral debt, US$681 million is owed to the African Development Bank (AfDB), US$1,5 billion to the World Bank, and US$427 million to the European Investment Bank,” said the Ministry of Finance, Economic Development and Investment Promotion.
In December 2022, the Government established a Structured Dialogue Platform with all creditors and development partners, to institutionalise structured dialogue on economic and governance reforms to underpin the Arrears Clearance and Debt Resolution process.
The process is being championed by AfDB president Dr Akinwumi Adesina and supported by the high-level facilitator, Mozambique former President Joachim Chissano.
Bongani Ndlovu