Zimbabwe's land reform compensation deal faces significant challenges as displaced white farmers reject the government's latest payment scheme. The government claims to have disbursed US$308 million under the Farmers Compensation Agreement (FCA), but former farmers argue the offer falls far short of the original 2020 Global Compensation Deed.
Finance Minister Mthuli Ncube announced the payments, which cover 378 farms. However, Deon Theron, acting chairman of the Compensation Steering Committee, criticized the plan. He noted that only 740 farmers out of 4,500 have been approved for compensation.
The revised compensation plan offers Treasury Bills over a decade with a low 2% interest rate, compared to regional averages of 10-20%. Farmers overwhelmingly rejected the new terms, with only 782 supporting the 2023 proposal compared to 3,100 who backed the original 2020 agreement.
Theron accused the government of misleading the public by rebranding the interim relief payments as a comprehensive compensation solution. The original $3.5 billion compensation package represents a substantial discount on the actual property values, and current payments reach fewer than 10% of affected farmers.
Finance Minister Mthuli Ncube announced the payments, which cover 378 farms. However, Deon Theron, acting chairman of the Compensation Steering Committee, criticized the plan. He noted that only 740 farmers out of 4,500 have been approved for compensation.
The revised compensation plan offers Treasury Bills over a decade with a low 2% interest rate, compared to regional averages of 10-20%. Farmers overwhelmingly rejected the new terms, with only 782 supporting the 2023 proposal compared to 3,100 who backed the original 2020 agreement.
Theron accused the government of misleading the public by rebranding the interim relief payments as a comprehensive compensation solution. The original $3.5 billion compensation package represents a substantial discount on the actual property values, and current payments reach fewer than 10% of affected farmers.
