Political Correspondent
The Zimbabwean government has made significant progress in compensating former farm owners, with 444 cleared for payment under the Global Compensation Deed.
This initiative aims to settle the $3.5 billion debt owed to farmers for improvements made on acquired farmlands over two decades ago.
Compensation Breakdown
- $35 million allocated in the 2024 national budget for compensating former farm owners.
- 92 farms approved for payment under the Bilateral Investment Protection and Promotion Agreements (BIPPAs).
- $20 million set aside for BIPPA farmers in the 2024 budget.
Eligibility for Compensation
Farmers from countries that signed and ratified BIPPAs by 2000 are eligible for payment, including Denmark, Switzerland, Germany, Netherlands, and Yugoslavia.
Zimbabwe’s Debt Situation
The country’s total public debt stands at $21 billion, with external debt at $12.3 billion and domestic debt at $8.7 billion. Multilateral creditors are owed $3.1 billion, with significant amounts due to the African Development Bank ($681 million), World Bank ($1.5 billion), and European Investment Bank ($427 million).
Progress and Future Directions
The government has established a Structured Dialogue Platform to facilitate dialogue on economic and governance reforms, championed by AfDB president Dr. Akinwumi Adesina and supported by Mozambique’s former President Joachim Chissano. This initiative aims to accelerate efforts to achieve debt resolution goals and promote economic growth and stability.
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