Zimbabwe is set to pay $331 million in compensation to former white farmers whose land was seized by the government in 2000, as a crucial step towards restructuring its crippling $21 billion debt, Bloomberg reports.
The move, announced Monday at a debt conference in Harare, is aimed at unlocking access to international capital markets, from which the nation has been locked out for over two decades.
African Development Bank (AfDB) President Akinwumi Adesina revealed that at least 439 former landowners have been identified as beneficiaries of the settlement. He confirmed that $35 million has been allocated in this year’s budget to initiate payments, which will be made via bonds. The timeframe for the full payout was not specified.
The compensation plan forms a central part of Zimbabwe’s strategy to resolve its debt crisis. President Emmerson Mnangagwa, in 2022, enlisted the help of Adesina and former Mozambican President Joaquim Chissano to mediate negotiations with creditors, including the World Bank, Paris Club, European Investment Bank, and the AfDB. Last month, the government further engaged Global Sovereign Advisory and Kepler-Karst to assist in the complex debt restructuring process.
Zimbabwe’s inability to service its arrears has severely hampered its economic development, preventing access to vital financing from institutions like the International Monetary Fund (IMF). The government has been forced to rely on the central bank for funding, a practice that has contributed to the country’s ongoing economic struggles.
The land seizures, a controversial policy implemented under former President Robert Mugabe, have long been a major obstacle to international engagement with Zimbabwe.
