(HERALD ZW) President seals historic land deal
COMMENT - So the new government compromised on landreform. The fact is that improvements to land were to be paid by the Zimbabwean government, while the British government was to finance the purchase of the land itself. So ironically, it is the ZANU-PF government that held up it's end of the bargain, while the British government of course reneged on it's obligations - see the Claire Short letter from November 1997, in which she stated:I should make it clear that we do not accept that Britain has a special responsibility to meet the costs of land purchase in Zimbabwe. We are a new Government from diverse backgrounds without links to former colonial interests. My own origins are Irish and as you know we were colonised not colonisers.
It is still immoral and unethical for the Zimbabwean people to foot the bill to in effect buy their own independence. Therefore, I still say that the British government must compensate the Zimbabwean people, not only for this $3.5 billion, but for the $42 billion plus and counting that their economic sanctions stole from the Zimbabwean people. When will the Zimbabwean people be compensated for economic sanctions?
Comments: Rutendo Matinyarare Speaks out, ZIMBABWE is PAYING COLONIAL TAX, impact of Zimbabwe's compensation.
02:40 Rutendo Matinyarare: "This is actually an illegal and voidable agreement."
UPDATE August 8th 2020
Interview of Takura Zhangazha about the Glocal Compensation Deed.
- MrK
(HERALD ZW) President seals historic land deal
President Mnangagwa witnesses the signing ceremony between Finance and Economic Development Minister Professor Mthuli Ncube (right) and Commercial Farmers’ Union president Andrew Pascoe at State House yesterday
Fungi Kwaramba Political Editor
The 4 000 white commercial farmers who lost their farms during land reform will now be getting US$3.5 billion compensation for improvements after Government and the farmers’ representatives yesterday signed a series of agreements in a ceremony presided over by President Mnangagwa at State House.
The President described the agreements, bundled as the Global Compensation Deed (GCD), as a “milestone” that demonstrates the Second Republic’s commitment to re-engagement and constitutionalism.
Presiding over the signing ceremony of the GCD at State House, President Mnangagwa described the event as “historic” inasmuch as it closed the land reform chapter and sealed its irreversibility, sentiments echoed by the representative of the farmers who said the agreement sent a clear message to investors that Zimbabweans could work together and that the country was truly open for business.
The funding for the GCD will be mobilised by a team headed by Finance and Economic Development Minister Professor Mthuli Ncube, which includes representatives of the former farmers.
The compensation is for infrastructural improvements that the farmers did on farms, which were repossessed at the turn of the millennium to redress colonial imbalances. These improvements include land clearance, drainage, irrigation trenching, fencing, dams and boreholes, as well as buildings.
The agreements were signed by acting Agriculture, Lands and Resettlement Acting Minister Oppah Muchinguri-Kashiri for the Government and by the Commercial Farmers Union, which represents the farmers affected, plus the Southern African Commercial Farmers Alliance, Valuation Consortium (Pvt) Ltd and the Compensation Steering Committee.
The President said land was at the heart of the country’s liberation struggle of the 1960s and 1970s, but the Lancaster House constitution “entailed that land could not be compulsorily acquired during the first 10 years of independence”.
With hands tied by constitutional requirements contained in the Lancaster House constitution, the Government adopted a willing buyer willing seller principle after independence in 1980, but because few wished to sell, success was limited.
The legality of the major land reform thrust of the early 2000s was confirmed in 2013 when an overwhelming majority of Zimbabweans approved in a referendum the present Constitution which incorporates the irreversibility of the land reform but makes it clear that the holders of the appropriated land were entitled to full compensation for their improvements.
Land was not included, and has not been included, in the constitutional provisions or yesterday’s agreements. The land had been seized by the British South Africa Company with backing from the British Colonial Office in the early 1890s through fraudulent land concessions in the east of the country and open war in the west.
Through the Land Apportionment and Land Tenure Acts the settler governments physically removed the original inhabitants. This was the injustice that land reform addressed, along with practical requirements of breaking up large estates.
While land was expropriated in the First Republic, the promised compensation for improvements was never paid. But upon achieving the presidency in 2017, President Mnangagwa pledged that the Second Republic would entrench constitutionalism, the rule of law and respect for property rights, and has since made it clear that this included compensating the white farmers for improvements on the land expropriated, a commitment which culminated yesterday in the signing of the historic GCD.
“The signing of these agreements is merely a building block to what lies ahead. More work must be done. As Zimbabweans, we must all work together for increased productivity, to achieve food self-sufficiency and nutrition; raw materials for our industries and exports for the international market. All of us have a role to play to ensure that our Agriculture Recovery Plan is a success.
“We cannot change the past; we can only learn from it. I therefore, exhort you to build on the goodwill and trust we have developed from experience of negotiating for these agreements, to move forward with the national interest as the overriding principle,” he said.
The President made it clear that the signing of the agreement does not mean that the Government will compensate for the land and that the contract does not create any liability to the country.
On his part Prof Ncube said the compensation will involve mobilising resources within the country and globally using different platforms.
“The agreement is that we create a resource mobilisation committee that I chair and we will travel around seeking funding to finance the compensation needs but of course the compensation is also a way of financing agriculture. We have a strategy and we will unveil it as we go on. We will start (working) this week and the work starts now to make sure that Zimbabwe moves forward,” said the minister.
An emotional president of the Commercial Farmers Union, Mr Andrew Pascoe, said the unity of purpose that Zimbabweans exhibited in coming up with the agreement will make it easier for the country to mobilise resources and catch the attention of international investors.
“Today marks a huge milestone in that today we are coming together and that as Zimbabweans we have decided to put aside our differences and have resolved to work together to resolve this outstanding issue. I am convinced that we as Zimbabweans, if we continue working together in the spirit of unity as we have demonstrated so far, we will succeed and the recovery of our economy will become a reality, and it will bring to an end conflicts that have impacted all our lives. This agreement will send a clear and unambiguous message to both local and international investors that Zimbabwe is really and truly Open for Business,” he said.
After Zimbabwe resolved outstanding issues of the land reform through the signing of the GCD, what remains now is for the farm right-sizing exercise to begin so as to ensure that Zimbabweans benefit from the land.
Vice Presidents Dr Constantino Chiwenga and Cde Kembo Mohadi, Cde Muchinguri-Kashiri, Foreign Affairs and International Trade Minister Dr Sibusiso Moyo and Local Government and Public Works Minister July Moyo witnessed the signing ceremony.
Labels: CFU (ZW), EMMERSON MNANGAGWA, LAND REFORM
posted by MrK @ 2:16 PM
18 Comments:
Zim's Land Compensation Deal: Ahistorical
Sanctification of Private Property and Inequality
By Takura Zhangazha*
Monday, 3 August 2020
"The Zimbabwean government in July 2020 signed what it referred to as a Global Compensation Deed (GCD) with ‘former farmers’. The latter being mainly former white commercial farmers as represented by, in the agreement, the Commercial Farmers Union (CFU), Southern African Commercial Farmers Alliance (SACFA-Zimbabwe) and Valuation Consortium (Private) Limited (Valcon). The GCD was signed after what can be considered an exclusive 24 July 2020 referendum where members of the above cited organizations with a whopping 94% vote count (2801 voters) accepted the Zimbabwe government’s offer."
"This agreement, it turns out, has been long in the making including previous negotiations that involved the late Robert Mugabe’s administration. All as a result of the international political and private capital outcry over the Fast Track Land Reform Programme (FTLRP) at the turn of the century."
"Without a doubt, at some point within the proposed first payment period of twelve months the public debate on the GCD will become a bit more apparent. It will however be couched in the neo-liberal discourse that the ruling Zanu Pf party now prefers. With an assumption of inevitability about it based on wanting Zimbabwe to be perceived as a ‘normal’ private property respecting country by global superpowers and hegemonic private capital."
More...
(Newzwire) Zimbabwe has signed a US$3.5bn compensation deal with white farmers. Here’s what you need to know
By newZWire -July 29, 2020
Zimbabwe has signed an agreement with white former farmers for US$3.5 billion in compensation for improvements on farms taken over for resettlement under the land reform exercise.
But, why are farmers being compensated? What are they being compensated for exactly? Who is paying?
Here is what you need to know.
Why the compensation?
The question of whether or not farmers must be compensated – whether for land or improvements on it – has been controversial for years. Western governments have previously made it a key precondition for mending relations.
Legally, under Chapter 16 of the Constitution, white farmers are entitled to compensation for improvements on acquired land.
However, opponents of compensation say it is unnecessary, and that Zimbabwe is better off spending that money on funding land reform beneficiaries to grow output.
According to President Emmerson Mnangagwa, this step was legally necessary.
“It brings both closure and a new beginning in the history of the land discourse in Zimbabwe. The process which has brought us to this event is equally historic as it is a reaffirmation of the irreversibility of land as well as a symbol of our commitment to constitutionalism, the respect for rule of law and property rights,” Mnangagwa said at the signing ceremony on Wednesday.
Andrew Pascoe, head of the Commercial Farmers Union, described the deal as “nothing short of a miracle. I firmly believe that the way of conflict, doesn’t help any of us”. The compensation was necessary, he argues, to bring closure to an old conflict that has “had a tremendous impact on us all”.
Rather optimistically, Pascoe said: “The payment of this compensation will send a clear and unambiguous message to both the local and foreign investors that Zimbabwe is really open for business.”
Compensation for ‘improvements’, not the land
Under the country’s law, Zimbabwe does not have any obligation to compensate for land.
Zimbabwe’s Constitution, under Chapter 16 (Section 295), only allows compensation to “indigenous Zimbabweans” and those under Bilateral Investment Promotion and Protection Agreements (BIPPAs). White farmers are only “entitled to compensation from the State only for improvements that were on the land when it was acquired”.
Mnangagwa pointed this out at the event, saying “our entering into the agreement does not create any liability whatsoever”.
According to the agreement: “The draft agreement re-affirms that the Republic of Zimbabwe does not have any obligation for compensation for land and its entering into the agreement does not create any liability whatsoever in this regard.”
ED at the Agrishow, a farmers’ exhibition, 2018
How much will farmers get?
Compensation has been set at US$3.5 billion. The figure was arrived at after valuations by a World Bank team, led by lands and valuations expert Maxwell Mutema. The process was funded by the European Union (EU) and the United Nations Development Programme (UNDP).
How will this money be paid?
According to the agreement, half of the money will be paid in 12 months. A quarter of the balance will be paid in each subsequent year so that full payment is made over five years.
Who is paying?
Zimbabwe obviously does not have this kind of money. The two parties have agreed to jointly seek international support for the money. However, the taxpayer will ultimately pay, as one of the main methods of raising money will be a long term-bond. In other words, Zimbabwe will borrow money to pay the farmers.
Says the agreement: “Republic of Zimbabwe is expected to borrow by issuing a long term debt instrument of 30 years maturity in international capital markets in compliance with the country’s debt management strategy and consistent with its key debt sustainability indicators.”
Finance Minister Mthuli Ncube says he will chair a joint fund-raising committee, together with farmers, to raise the money.
“The compensation will involve raising resources both within the government, within the country, using different structures as well as globally,” Ncube says. “We will travel the world seeking to raise funding to finance the compensation needs.”
According to Ncube, this is “in a way financing agriculture, so I think it’s a win-win”.
However, the World Bank has already said it will not put money into compensating the white farmers. The Bank was only willing to fund the valuation exercise.
Who gets the money?
The agreement says “the CFU shall confirm and advise the Republic of Zimbabwe of each claimant’s entitlement out of the agreed USD3.5 billion global compensation figure.”
CFU president Andrew Pascoe (left) and Finance Minister Mthuli Ncube (right) sign the agreement on compensation as President Mnangagwa watches
How did they get here?
A timeline
2016 – Talks towards this deal start, under a programme sponsored by the EU and the UNDP. This leads to a working group formed on compensation. It is made up of government officials and representatives of white farmers.
March 2018 – an inter-ministerial compensation committee is set up, targeting to conclude talks on compensation by September that year.
2019 – the two sides reach a deadlock; government offers US$1.2 billion for while the farmers’ representatives want US$5.4 billion. Ncube engages independent assessors to conduct a valuation review.
The assessors recommend a figure of US$2.7 billion, subject to further talks on the value of biological assets and land clearing costs. Farmers feel these are undervalued.
13 January 2020 – VP Constantino Chiwenga chairs a meeting of the Inter-Ministerial Compensation Committee and sets US$3.2 billion for negotiations.
January 29 – further meeting on compensation for BIPPA protected farms. A Technical Compensation Committee, chaired by Godfrey Chanakira, Secretary in Chiwenga’s office, is announced.
27 February 2020 – A joint Technical Compensation Negotiation Committee, comprising government officials and representatives of farmers is constituted. The committee is given a 31 March 2020 deadline to agree on a compensation figure.
2 April 2020 – The technical compensation committee reaches a figure in the range of US$3 – 3.5 billion.
20 May 2020 – The joint committee meets the World Bank to explore the prospects for the Bank’s assistance in mobilising funds for compensation. The World Bank’s country manager says the Bank would only offer technical assistance in developing a compensation roadmap and financial structuring for borrowing for compensation.
12 June 2020 – The joint committee drafts the Global Compensation Deed and its complementary agreement on compensation for land commences.
24 July 2020 – At midnight, farmers vote in a “referendum” on the government’s offer of US$3.5 billion compensation for improvements. Out of the 2 963 responses received in the referendum, 2 801 (94.5%) accept the Government’s offer.
Does this change anything with the West?
While farmer compensation – couched often as “property rights” – has always been a key demand of Western governments on reengaging with Zimbabwe, this deal is unlikely to shift their position on the country.
Firstly, Western governments, and the USA especially, have taken an increasingly tough position against Zimbabwe over the country’s worsening human rights violations.
On May 31, the US described Zimbabwe as “a foreign adversary”, at par with Russia, Iran and China. This saw Zimbabwe summoning the US ambassador in Harare to protest.
Relations have hit rock bottom over recent weeks, with ZANU PF calling the US ambassador Brian Nichols a “thug”. The US responded by calling the comments “deeply offensive” and summoning Zimbabwe’s ambassador in Washington to explain.
Secondly, a central demand of the United States’ Zimbabwe Democracy and Economic Recovery Act (ZIDERA) is that Zimbabwe must enforce the rulings of the SADC tribunal on land reform. The effect of these rulings is full compensation for the land, and actually giving back the farms taken over for resettlement.
Zimbabwe is also unlikely to receive any major financial bailout, as long as it still owes multilateral institutions such as the World Bank, the African Development Bank and members of the Paris Club group of lenders.
That the World Bank has turned down requests to pay compensation shows that compensating the farmers will not be an easy task for Zimbabwe.
COMMENT - EFF opposes the sellout deal - MrK
(HERALD ZW) Zim’s SA Embassy raps EFF
Zim’s SA Embassy raps EFF
Julius Malema
Herald Reporter
THE Zimbabwean Embassy in South Africa has expressed its displeasure with the utterances made by South African opposition party Economic Freedom Fighters (EFF) leader Julius Malema, which sought to cast aspersions at the recently signed US$3,5 billion Global Compensation Deed (GCD) deal between Government and white former farmers.
In a statement, the Embassy said the country will not be lectured by misinformed and misguided regional parties such as the EFF.
It said that the agreement was a fulfilment of the country’s constitutional provisions.
“The Embassy of the Republic of Zimbabwe in South Africa read with contestation and utter disbelief the EFF statement on the announcement by the President of Zimbabwe on compensating white farmers issued on July 31, 2020,” said the embassy.
“The Embassy has, in the past, restrained itself from responding to the many provocative statements issued by the EFF about Zimbabwe. On this occasion, we cannot remain silent in the face of the EFF’s pretentiousness to know more about the history and politics of Zimbabwe than the Zimbabweans themselves.
“Even more, the EFF has the audacity to dare teach Zimbabweans, even our Head of State, about the land question in our country.”
The embassy said not only did thousands of compatriots pay the supreme sacrifice for the return of the land to its rightful owners, but many people were shouldering the burden of sanctions imposed by those opposed to the land reform programme.
Provisions of the Global Compensation Deed Agreement signed on July 29, 2020 between the Government of Zimbabwe and representatives of the former commercial farmers fully adhered to the Constitution of Zimbabwe, in particular Section 72, which dealt with Rights to Agricultural Land.
“That section stipulates in paragraph 3 (a) that where agricultural land is compulsorily acquired for public purpose, no compensation is payable in respect of its acquisition, except for improvements effected on it before its acquisition,” said the embassy.
“This is what the signed compensation agreement of July 29, 2020 provides for. The Government of Zimbabwe will compensate the former farmers for the improvements on the acquired land only. No more. There is nothing treasonous in upholding one’s own national constitution.
“It will be recalled that the Constitution of Zimbabwe was approved by 95 percent of votes in a referendum held in 2013 and was assented to and signed into law by the then Head of State, the (then) President Robert Mugabe on May 22, 2013.”
Malema’s EFF, which has offered a political home to members of the G40 faction, who are running away from the long arm of the law, in its statement wrongly claimed that the Government would pay for the land with money that has since been secured, but this is far from the truth.
So what is the gratitude the coup government is getting for this $3.5 billion sellout?
- An end to ZDERA and other economic sanctions? No.
- A guarantee that the Zimbabwean people's money will not be used by these rhodies to 'buy back' estates in Zimbabwe? No.
- An end to the regime change agenda against Zimbabwe? No.
Peter Hain calls for more economic sanctions against Zimbabwe, because of... human rights?
(IOL SA) Peter Hain calls for new sanctions on Zimbabwe
COMMENT - The SACP opposed the sellout deal. - MrK
(IOL SA) Zimbabwean Communist Party lashes Mnangangwa over R61bn deal to compensate white farmers
By Samkelo Mtshali
Johannesburg – The Zimbabwean Communist Party (ZCP) has lashed out at President Emmerson Mnangangwa's administration after it signed a R61 billion agreement to compensate white farmers for what the government termed as ‘improvements on the land’.
The ZCP’s view comes as the government has cracked down on protesters who have been angered by alleged corruption in the government and the Zimbabwean's weakened economy.
Over the last few days, the police have arrested political activists, journalists and trade union leaders.
Ngqabutho Mabhena, the ZCP general secretary, said that these “improvements on the land“ had been paid for by underpaid and abused farmworkers.
“The ZCP will do its utmost to prevent this from happening. The signing of this agreement is a betrayal of the many sons and daughters of the soil who paid the ultimate price for our independence," Mabhena said.
“The dubious former liberation movement has now become the stooge of imperialist forces. Our struggle is against both imperialism and looters.
“It seems that Zanu-(PF) is now competing with MDC Alliance as to which organisation can grovel most to imperialism, while the MDC Alliance is now competing with Zanu-(PF), at least at local authority level, as to which party is better at looting."
According to Mabhena, there is little ideological or practical policy difference between the two parties and that this has been demonstrated by “the amazingly similar neo-liberal election manifestos presented to the public at the time of the 2018 elections”.
“Victims of the Gukurahundi genocide have not been compensated. Victims of Murabatsvina in 2005, the destruction of the houses of the poor, have not been compensated, but this regime wants to compensate former white farmers, most of whom are no longer in Zimbabwe.
“We would understand if money was allocated to support local farmers, both black and white, who are resident in Zimbabwe as we approach the farming season,” Mabhena said.
The EFF also questioned the Zimbabwean government for compensating white former landowners.
“Instead of providing logic for this regression on land reform, Zanu-PF party leaders have gone on a tirade that simply confirms their decision comes as a result of succumbing to political pressure and a lack of understanding of the revolutionary history of Zimbabwe.
“The Zimbabwean government, which is currently engaged in the torturing, incarceration, sexual assault and victimisation of protesters, has no moral authority or standing to claim to speak on behalf of the people of Zimbabwe,” said EFF spokesperson Vuyani Pambo.
He said that the Zimbabwean government, which was “compensating land thieves” for land which had been acquired through a revolutionary process, has declared Zimbabweans enemies through the deployment of the military to suppress genuine protests.
Political Bureau
Correction, the ZCP or Zimbabwean Communist Party, not the SACP.
US shows it's gratitude, sanctions Zimbabwe's biggest oil supplier. I think they are seeing this deal as a sign of weakness, to which their response is to push harder.
https://twitter.com/SecPompeo/status/1291029363639693312
US Secretary of State, former CIA Director and Bilderberg Group Meeting of 2019 attendee, Mike Pompeo:
"We support a stable and democratic Zimbabwe. Our new sanctions against Kudakwashe Tagwirei and Sakunda Holdings today demonstrate to the government and people of Zimbabwe that the U.S. will not tolerate public corruption or hesitate to take action to promote accountability."
I guess this is how they say 'thank you'.
REACTIONS:
Rutendo Matinyarare Speak out, ZIMBABWE is PAYING COLONIAL TAX, impact of Zimbabwe's compensation
02:40 Rutendo Matinyarare: "This is actually an illegal and voidable agreement."
https://youtube.com/watch?v=D2XLDVgXx2s
REACTIONS: From Kenya, No to this deal.
SHAME!! ZIMBABWE TO PAY WHITE FARMERS $3.5BN IN LAND COMPENSATION
https://www.youtube.com/watch?v=fIzfRoE3koU
African Tigress is also on Facebook.
https://www.facebook.com/officialafricantigress/
Ambassador dr. Arikana Chihombori Quao
Twitter: @HEDrArikana
'The truth' about Compensating White Farmers in Zimbabwe - Dr Arikana Chihombori
https://www.youtube.com/watch?v=l4sP_3p1ZBg
Dr. Arikana Chihombori, former Zimbabwean ambassador to South Africa, tries to defend this neoliberal deal:
"Now one might argue, that why are they being compensated, while the Blacks when the land was taken, they were not compensated. I tell you what, we've gotta move forward."
So you are justifying this theft by pulling an Obama? That's your answer?
Comments added.
COMMENT - At least the Venezuelan government stands with the Zimbabwean people. - MrK
(PRENSA LATINA) Venezuela condemns US punitive actions against Zimbabwe
Caracas, Aug 6 (Prensa Latina)
Venezuela's Foreign Minister Jorge Arreaza condemned on Thursday the US punitive actions against Zimbabwe.
On Twitter, the head of Venezuelan diplomacy also expressed his solidarity with that nation victim of the tightening of Washington's coercive measures.
'From Venezuela we reject, as illegal, arbitrary and inhumane, the US unilateral coercive measures against the people of Zimbabwe in the midst of the Covid-19 pandemic. We express our solidarity with its people and government, confident that their dignity will not be defeated,' Arreaza tweeted.
In March 2020, the US government extended for 12 months the measures against that country, imposed since 2003 because allegedly 'it is an extraordinary threat to the US foreign policy.'
On March 12, the US State Department announced the inclusion of the Security Minister Owen Ncube and another diplomat on its list of those sanctioned for 'eroding confidence in bilateral relations,' statements described as absurd and interfering by Zimbabwe's government.
The US government has adopted those kinds of measures against countries and leaders of Cuba, Venezuela and Iran, among others.
COMMENT - From The Patriot, about the continued hostilities towards Zimbabwe from the United States. Also see here (THE PATRIOT ZW) US must recognise our sovereignty- MrK
(THE PATRIOT ZW) US: Hands off Zim
By Golden Guvamatanga
-August 6, 2020
"Equally pervasive is the fact that Zimbabwe now needs to seriously reconsider the reengagement drive, which has disappointingly been a one-sided affair.
Zimbabwe should cease to reengage countries that have openly shown that they are not willing to work with it and are in fact sponsoring anarchy as is the case with their support for violent demonstrations in the country."
More...
Comment - Gvt to use sell of state assets to raise $3.5 billion. Time to take off those silly scarfs. And can we stop calling those rhodesians 'farmers'? - MrK
(HERALD ZW) Land to securitise farmers’ compensation bond
Minister Ncube
Ishemunyoro Chingwere Business Writer
Agriculture and commercial land could be used as security for the US$3,5 billion sovereign bond the Government plans to issue to raise funds meant to compensate former white commercial farmers who lost land under the land reform programme.
Last month Government signed the Global Compensation Deed Agreement at a ceremony presided over by President Mnangagwa that will benefit about 4 000 white commercial farmers for improvements, biological assets, and land clearing costs on the farms they used to occupy.
The decision to use the land as part of the capital raise strategy comes at a time when Government plans to issue a 30-year sovereign bond.
A sovereign bond or Government bond is one that is issued by a national Government, with a promise to pay periodic interest payments called coupon payments and to repay the face value on the maturity date.
Continued 1...
In an interview with Zimpapers Television Network (ZTN) Finance and Economic Development Minister Professor Mthuli Ncube said land will come in handy in the quest to raise capital.
“We are looking at other structures, that may be linked to land itself not necessarily farming land it could be commercial land that Government owns.
“We are looking at all those strategies, especially land that is around urban areas,” said Minister Ncube.
“We are also looking at other Government assets which could be offloaded to support the liability attainment,” he said.
Land and other assets will, however, only be used if the Government fails to find guarantors for the bond from other governments and partners.
“Once we have external guarantee we may not necessarily then need to have some securitisation of other available assets, but if there is no guarantee then we will have to securitise some assets,” said Minister Ncube.
He said Government “will use every means just to make sure we can raise the money”.
Finding guarantors or using land as security will help the bond be attractive both in terms of the level of the yield and also in terms of its credit quality.
Continued 2...
“We are looking at issuing a 30-year bond or debt instrument. We will try to talk to a few institutions or indeed Governments and partners to see if they could guarantee this debt instrument so that we can enhance its credit standing in the market,” said Minister Ncube.
“We are going to hire financial institutions to also help us place this bond in the market in the usual way in the capital markets.”
A Resource Mobilisation Committee chaired by Minister Ncube and includes members of the former farmers have since been put in place.
The Minister said the target market is international although there is room for a portion being placed on the Victoria Falls Securities Exchange (VFEX) for the benefit of local investors with free funds or other resources.
The payment of former white commercial farmers is set to bring closure and finality to the land reform programme which has widened citizen participation in agriculture, itself the anchor sector of Zimbabwe’s economy.
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