Wednesday, 16 October 2024

US$20 MILLION FOR WHITE FARMERS

Zimbabwe’s Finance Minister, Professor Mthuli Ncube, has announced that the government will disburse US$20 million to former farm owners affected by the Land Reform Programme before the end of the year.

This payment is part of a multi-year compensation plan, focusing on claims protected under the Bilateral Investment Promotion and Protection Agreement (BIPPA).

Speaking to journalists after a dialogue meeting with development partners in Harare, Prof Ncube confirmed that the US$20 million will be paid out before year-end, with subsequent payments to follow annually.

“Specifically on the matter of compensation for former farmers,” he said, “as you know, we set aside in the budget US$20 million equivalent for that compensation, which is set to begin in earnest in this last quarter.”

Despite this initial payment, a substantial debt remains. Zimbabwe still owes US$176 million to former farm owners under BIPPA, covering 94 claims. The largest claims come from the Netherlands, followed by Switzerland and Germany.

“We have been going through a verification process, and that process has produced credible results,” Ncube explained. “We know who they are. This is a multi-year program, not a one-off. Next year, we will continue with the compensation process until all liabilities are settled.”

In addition to BIPPA claims, the government has received 441 claims totalling US$351.6 million under the Global Compensation Deed. Professor Ncube noted that US$3.5 million of this will be paid by the end of the year, representing just one percent of the total claims under the deed.

The European Union Ambassador to Zimbabwe, Jobst von Kirchmann, highlighted the need for a robust legal framework. “For now, it is a policy and not yet a law,” he said. “I think it requires further discussion. It’s important to have a law that meets the needs of both the government and farmers, providing a clear and effective solution.”

Ayodele Odusola, a United Nations representative, praised the government’s commitment to compensation, noting that it would support Zimbabwe’s reintegration into the global economy and attract foreign investment. CITE

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