Zimbabwe pays $508m to white farmers

Zimbabwe has paid $508 million in compensation to former white commercial farmers whose land was seized during the country's land-reform programme. The payment includes $12.6 million in cash and the remainder in dollar-denominated Treasury bonds.

Deputy Finance Minister Kudakwashe Mnangagwa said farmers had accepted the bonds as part of the revised compensation arrangements. The government changed the structure of the deal to include dollar-denominated bonds after initially struggling to meet payment commitments.

The dispute dates back to 2000, when the government accelerated its land-reform programme, seizing thousands of predominantly white-owned commercial farms and redistributing them to black Zimbabweans. The programme was accompanied by a sharp decline in agricultural production.

The International Monetary Fund has identified land-tenure reform and compensation for former farmers as one of the areas linked to Zimbabwe's efforts to clear arrears and normalise relations with international creditors. The country's economic dependence on agriculture has changed considerably since the land seizures.

Agriculture was once one of Zimbabwe's principal sources of foreign currency, with tobacco, cotton, sugar, and horticultural products contributing significantly to exports. The government has sought to resolve the long-running dispute and rebuild relations with international investors.

In 2020, Zimbabwe agreed to compensate about 4,000 white farmers for improvements and investments made on farms seized during the land reform programme. The compensation package was initially valued at $3.5 billion to be paid over 10 years.

The government has also begun resolving claims involving foreign-owned properties seized during the land reform programme, with recent compensation deals involving $146 million and the return of several seized farms.