Overview

• Zimbabwe has issued its first compensation payments, totaling $3.1 million, to 378 white farmers displaced during the 2000-2001 land reform program under Robert Mugabe.
• The payments are part of a 2020 agreement to compensate farmers $3.5 billion for infrastructure and improvements, not the land itself, which the government argues was seized during colonial rule.
• Remaining compensation for this group will be provided through US dollar-denominated treasury bonds with maturities of two to 10 years and a 2% interest rate.
• The initiative is critical for meeting international lender requirements to begin a debt restructuring process and reestablish relations with the IMF and World Bank.
• Critics argue the payments are symbolic and insufficient, while some economists warn the program could deepen Zimbabwe’s debt challenges given its existing $21 billion national debt.