The international community has described Zimbabwe's payment of compensation to white farmers as a new chapter in national healing. The payment is part of the Zimbabwe Arrears Clearance and Debt Resolution Process.

The mood in a fully packed room on the sidelines of the African Development Bank Group's Annual Meetings in Abidjan, turned emotional as a tearful former white farmer expressed gratitude after being amongst the first to receive the historic compensation.

"What a momentous day today is for me, a rollercoaster of emotions. Twenty-three years ago on this day, I drove off the farm, with only a bunch of keys, having not been allowed back in the house to collect anything." Lisa Nislev, a former farm owner and investor, shared her deep personal journey. "Today, the buckets in my house are not collecting rain but tears of gratitude."

"Thank you, Government of Zimbabwe, for the hand of reconciliation extended, and those around this table working tirelessly to achieve that. When the first payment came through, it was an emotional moment."

In the first quarter of this year, the Zimbabwean government started compensating former farm owners. The compensation for farmers under Bilateral Investment Protection and Promotion Agreements began in January, while the compensation under the Global Compensation Deed started in March.

The facilitator of Zimbabwe's Arrears Clearance and Debt Resolution Process, former Mozambican President Dr Joaquim Chissano, assessed the country's transformation, declaring that: "Overall, tremendous progress has been achieved in the dialogue. This makes me say, with great confidence, that there is light at the end of the tunnel."

The Structured Dialogue Platform was launched in December 2022 to bring together Zimbabwe and its creditors to find ways of addressing the country's substantial debt and arrears, which have accumulated over the past 20 years.

Chissano explained that the issue of land has been the genesis and nerve centre of all that has happened in Zimbabwe, noting that "Politically, this has been the crux of the matter, and was viewed as the most difficult, if not impossible, to address. However, Zimbabwe has proved all of us wrong."

Adesina, who is the Champion of the Zimbabwe Arrears Clearance and Debt Resolution process, called for continuous support for the process: "I urge everyone, development partners, governments, and the private sector, to continue supporting Zimbabwe and Africa at large. Together, we can create a future where Africa stands tall, debt-free, competitive, and thriving on the global stage."

The Bank President recalled when the Zimbabwe President, Emmerson Mnangagwa, requested him to champion the Process, emphasizing that compensation for the white farmers who had been displaced from their land was a top priority for him.

"I told him I would because I lived in and worked in Zimbabwe. I know Zimbabwe, and I know exactly what happens there, the Bank president said. "Sometimes, teeth and tongue bite each other. It doesn't mean I should get rid of my teeth or tongue. It is all about how we work together."

Tears of Gratitude: Former Farm Owners Receive Historic Compensation

Andrew Pascoe, Chairman of the Compensation Steering Committee and a Former Farm Owner, provided the backstory of this historic achievement.

"After almost twenty years, we as Zimbabweans had been able to put aside our differences and in an atmosphere of mutual respect and trust, negotiate an agreement that laid the foundation for the payment of Compensation," Pascoe explained.

Pascoe further explained that the compensation process demonstrates Zimbabwe's innovative approach. To date, 906 applications have been received. Of these, 740 have been approved by the Government's Land Compensation Committee, while the remainder are still at various processing stages. In April this year, the Government of Zimbabwe commenced the payment of the first batch of 378 farmers.

He highlighted the technological breakthrough: "We now have an electronic portal that allows farmers, wherever they are in the world, to register and upload all the required documentation to validate their compensation claims."

Strong Economic Foundation Supports Recovery

Finance Minister Professor Mthuli Ncube told the meeting that significant progress had been made towards reaching a Staff Level Agreement on a Staff Monitored Programme (SMP) with the IMF. Securing an SMP is crucial to the government's roadmap for clearing arrears and resolving debt.

The minister presented economic indicators demonstrating Zimbabwe's commitment to fiscal discipline, including:

- Projected economic growth of 6% in 2025, recovering from the impact of the 2024 drought.

- An improved revenue-to-GDP ratio of 17% in 2024, reflecting enhanced efficiency.

International community rallies behind Zimbabwe farmers' compensation program

European Union Ambassador Jobst von Kirchmann emphasized the need for accelerated governance reforms. "Despite navigating unprecedented challenges, foreign exchange controls, global impatience, and the harshest drought in years, Zimbabwe has demonstrated true leadership," he said. "We recognize that progress on the indicators may take time. We are supportive to envisage an intermediate solution, geared towards resolving the debt issue of the multilateral banks."

World Bank Country Manager Eneida Fernandes spoke about the notable progress made on farmers' land compensation.

"We remain engaged in partnering with the Government, the International Monetary Fund (IMF), the governance and land pillars co-chairs, the European Union, Switzerland, and all other bilateral partners. "

Swiss Ambassador Stéphane Rey highlighted the success of the Bilateral Investment Protection and Promotion Agreements (BIPPA) compensation scheme: "The BIPPA scheme is proof: with ownership, trust, and determination, complex issues can be addressed constructively. It's a big step forward for justice, confidence, and Zimbabwe's future."

He noted, however, that the Global Compensation Deed has not yet been fully implemented.

President Chissano appealed to the international community for continuous support, adding, "Zimbabwe does not have the capacity to implement the reforms agreed upon alone. It needs international support for that. Your support would be critical in mobilizing bridge financing, setting aside funds for arrears clearance at multilateral financial institutions."

Andrew Pascoe echoed this call, specifically requesting international guarantees for Treasury Bonds: "If a mechanism could be negotiated between the Zimbabwe Government and our development partners that would put in place an international guarantee of the Compensation Treasury Bonds, there would be an immediate and massive change to their value, tradability, and appeal."

President Chissano affirmed that Zimbabwe's Arrears Clearance and Debt Resolution Process represents not just economic reform, but a profound journey of national reconciliation and international reintegration. With tears of gratitude replacing tears of despair, Zimbabwe stands poised to reclaim its place in the global community.

Adesina explained metaphorically, "Zimbabwe's economy is like a baobab tree. With our hands together, we can unlock it."