Zimbabwe signed a $ 3.5 billion deal to compensate white farmers

“This momentous occasion is historic in many ways, both closed and marks a new beginning in the history of discourse in our country Zimbabwe,” current President Emerson Mnangagwa said after signing the agreement at the State House with the Speaker of Andrewsco. Commercial Farmers Association of Zimbabwe.

“After nearly 20 years of struggle over the land issue, representatives of farmers who lost their land through a rapid reform program and representatives of the government have been able to come together to see a resolution of this struggle. For me it is nothing less. a miracle. It has been a dream for me that I will see this day.

According to the agreement, 50 percent of the $ 3.5 billion will be paid for 12 months from the day of signing, while the remaining amount will be paid within five years.

Economists agree that the Zimbabwean government, after years of hyper-inflation, cannot pay compensation after allegations of cash shortages and mismanagement.

The Finance Ministry said in a statement that they will issue long-term bonds and will try to get the parties to contact international donors to raise and raise funds.

The agreement does not compensate the farmers for the value of the land, but the infrastructure is lost.

“The government of Zimbabwe has no obligation for compensation of the acquired land. Our entry into the agreement does not create any obligation in this regard,” said Mangangwa.

John Robertson, an independent economist, says the Zimbabwean land issue is far from over because the cash-strapped government still has a source of funding for compensation.

“Are our priorities skewed? In hospitals in the midst of an epidemic with no doctors or nurses. Now we go to the farmers? Yes, there is an obligation to pay. Where is the money? We can sign many agreements, but For now one? Looks like an entry with just the intention of paying, ”said Robertson, a noted critic of the Zimbabwean government.

Health workers in Zimbabwean hospitals are in loggerheads with the government over salaries. The nurses union staged a protest last month and asked the government to increase their wages.

Wednesday’s agreement with the farmers marks another symbolic departure from his predecessor Mugabe to Mnangagwa, who helped him out in 2017.

Since taking office, Mnangagwa has taken several steps towards reconciling with white commercial farmers.


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