Correspondent|Former white commercial farmers who had their land expropriated under the fast track land reform programme in the early 2000’s have accepted government’s offer of an interim payment of RTGS$53m.
In a statement the Commercial Farmers Union said they had to accept the advanced interim payment as some farmers were in financial distress.
“As this is a limited fund, it is hoped that those who are not in financial distress do not take it up so as to maximise the effect on others not so fortunate.”
Finance Minister Mthuli Ncube budgeted RTGS$53m in his 2019 national budget as compensation to the former farmers, and the offer has now been accepted by a union representing the farmers.
Zimbabwe introduced a new currency called the RTGS$, or real-time gross settlement dollar, in February.
In 2000 Zimbabwe expropriated land from white commercial farmers without compensation and distributed it to landless black people and the connected elite, who now own multiple farms.
The total bill could run into billions and the Zimbabwean government is working with international financial institutions on how best to fund the compensation.
In its own statement on the issue, which was released over the weekend, the Zimbabwean government said by end of April 2019 the registration papers for beneficiary farmers would be complete and disbursements will commence.
President Emmerson Mnangagwa’s government sees the paying of compensation to white farmers as key to mend ties with the West, and set aside $17.5 million in this year’s budget to that end. The initial payments will target those in financial distress, while full compensation will be paid later.
“The registration process and list of farmers should be completed by the end of April 2019, after which the interim advance payments will be paid directly to former farm owners,” Zimbabwe’s ministries of finance and agriculture said in a joint statement on Monday.
They said the process to identify and register farmers for compensation was being undertaken the Commercial Farmers Union (CFU) and a committee representing the farmers.
A committee comprising government officials and former farm owners is currently valuing improvements made on the farms. That process should end next month and will determine the full amount due to the farmers.
The government, which maintains it will only pay compensation for infrastructure and improvements on farms and not for the land, is talking to international financial institutions on options to raise the full amount to pay farmers.
Colonialists seized some of the best agricultural land and much of it remained in the hands of white farmers after independence in 1980, while many blacks were landless.
Valuations for farm improvements are also expected to be completed by end of May 2019, reads the statement.