While the payment is a fraction of that agreed to, resolving the dispute is key to the country pulling out of the economic stagnation that the seizures, ordered by then President Robert Mugabe triggered. Exports plunged, relations with multilateral lenders were severed, the U.S and the European Union imposed sanctions and Zimbabwe experienced a bout of hyperinflation.
“Government asked that the payments be spread out,” Andrew Pascoe, president of the Commercial Farmers’ Union of Zimbabwe, said in an interview in the capital, Harare, Wednesday. “This represents the first money we have received.”
Read More: Zimbabwe’s economic crisis and hyperinflation
The farmers were originally to be paid half of the damages agreed to by next month, but the government requested that be put off for 12 months, Pascoe said.
Zimbabwe’s government controls 65% of Kuvimba through a 21.5% direct stake and other shareholding via state entities, including a sovereign wealth fund, pension funds and a special purpose vehicle created for farmers whose land was seized, Finance Minister Mthuli Ncube said Wednesday. However, there have been contradictory claims about the ownership of Kuvimba’s assets.
The payment was part of $5.2 million given to shareholders.
Under the agreement with farmers, the government proposed selling a 30-year bond on global markets to raise the money, but this has been delayed because of the effect of the coronavirus pandemic.
The state’s decision to make farmers shareholders in Kuvimba and to give others 99-year leases signaled a commitment to settle its obligations, Pascoe said.
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Too little too late. The former breadbasket of Africa a ruin. I hope the powers south of that border take note.
Agreed. Malema should take note as he can’t see the wood for the trees. Except there are no trees.
This minuscule payment is intended as partial compensation for improvements made on the land not for the land itself. It seems the United Kingdom is still considered to have sold stolen goods, the land, to the Rhodesians and so remains liable for compensating the white farmers for the land only.
Any such agreement will only last while the Government of Zimbabwe sees it as the only way to start resurrecting their economy. They have lied before and are desperately looking for ways to increase their income through misappropriation of Aid funding.
Farmers – dont hold your breath?!!!!!