US$3.1mln disbursed, Government delivers on commitment to compensate former farm owners

Prosper Ndlovu

A TOTAL of 740 farms have been approved for compensation by the Land Compensation Committee as Government fulfils its commitment to compensate Former Farm Owners (FF0s) claims under the Global Compensation Deed (GCD) signed in 2020.

“In this regard, Government disbursed US$3.1 million for the first batch of 378 processed farms. This amount is one per cent of the total compensation claim value of US$311 million,” Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said in a statement issued Wednesday morning.

“Last week, the Government also issued Treasury bonds related to the first batch of farmers to their custodian bank.

“In line with the GCD agreement, the FFOs receive one per cent of their claim in cash, with the balance being paid through US$ denominated Treasury bonds with a two per cent coupon and maturities of two to 10 years,” he said.

“These bonds have the following features: liquid asset status, prescribed asset status, tax exemption, tradable and transferable.”

Government allocated US$10 million in the 2025 National Budget for the compensation of FFOs under the GCD and compensation payments are being made to interested individual farmers.

Prof Ncube has reaffirmed Government’s commitment to continue with the payments while implementing reforms that are key to clearing the country’s arrears and resolving the debt burden.

“We are very serious about this. By settling our arrears, we can tap into the long-term capital, which is essential for infrastructure development and other significant investments,” he said.

“This is not just crucial for the Zimbabwean government, it also impacts our private sector, which faces restrictions from creditors due to these arrears. “Lifting these caps will facilitate access to foreign capital, making it easier to obtain financing to support our industries and create meaningful jobs for our citizens.”

Chairperson of the Compensation Steering Committee and past president of the Commercial Farmers Union, Mr Andrew Pascoe, has confirmed receipt of payments, describing the development as “another momentous event”.