Zimbabwe plans to start compensating mainly white farmers who lost their land and livelihoods during state-backed farm invasions that began in 2000 and triggered a near decade-long recession, the Finance Ministry said in a circular distributed to lawmakers.
Farmers may be compensated for “both land and improvements,” as well as for equipment acquired by the state during the often violent seizure of properties, according to the document that was submitted to parliament on Tuesday. If approved by the government, it would mark a major shift in policy.
President Robert Mugabe previously said payments would be made only for investments in infrastructure such as dams, roads and buildings on seized farms.
The ministry’s plan to set up a Lands Compensation Fund comes as the government is seeking to restore relations with the International Monetary Fund and Western donors, and kickstart growth in an economy that’s half the size it was in 2000.
Finance Minister Patrick Chinamasa has said Zimbabwe is ready to pay lenders such as the IMF, World Bank and African Development Bank about $1.8bn in debt and hopes the Washington-based fund will resume lending to the southern African nation this year. Chinamasa declined on Wednesday to comment on the circular.
