No capacity to compensate displaced white farmers, says Zim | Fin24
In partnership with
  • Ace vs. SA Reserve Bank

    The ANC secretary general has again weighed in on the central bank's mandate.

  • Mandela Day

    Nationalisation, privatisation and land: What Mandela told business in 1990 still resonates today.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.


No capacity to compensate displaced white farmers, says Zim

Nov 27 2018 06:01
Crecey Kuyedzwa

The Zimbabwean government is engaging international financial institutions and other stakeholders, hoping to mobilise resources to compensate displaced white farmers, Finance Minister Mthuli Ncube has said.

Ncube said the Southern African country’s government had decided to improve on compensation to all former farmers affected by the Land Reform Programme, in accordance with the country’s laws and commitments under the various bilateral agreements.

However, he said government did not have capacity to finance the former farm owners.

"Whilst work on the extent of government’s obligations is still to be finalised, the resources required to compensate and put closure to this important issue is obviously beyond the capacity of the budget to finance," said Minister Ncube.

The former farmers are reportedly owed some US$9bn in compensation for improvements made on the farms before the land reform exercise.

In this regard, said Minister Ncube, government is engaging international financial institutions and other stakeholders, exploring various sustainable options for gathering the required resources.

In a demonstration of government’s limited capacity, Minister Ncube said Treasury had put aside US$53m for the exercise.

"Given the limited fiscal space, the 2019 Budget makes provision of US$53m for payment of compensation to former farmers, to show commitment to this obligation," he said.

Another option which has been put on the table is to have beneficiaries of the controversial land reform programme to pay compensation to the displaced white farmers.

According to Lands and Agriculture Minister Perrance Shiri, the state would not be burdened with paying compensation, as it was individual resettled farmers that benefited.

"It makes common sense that instead of labouring the tax payer, the person who is directly benefiting from those improvements contributes towards the compensation of the former farmers," he said.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

zimbabwe  |  africa economy  |  land expropriation


Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

FaceApp has been at the centre of a debate on data security. What is your view?

Previous results · Suggest a vote