THE African Development Bank’s (AfDB’s) outgoing president Akinwumi Adesina says Zimbabwe could unlock up to US$9 billion from land seized during the 2001 land reform programme — if it had title deeds.
The Zimbabwean government undertook the controversial fast-track land reform programme at the turn of the millennium to displace white farmers from their land and redistribute it to black farmers as a move to address colonial imbalances.
However, most of these black farmers have failed to make meaningful use of the land since they got the farms on the basis of them either being ruling Zanu PF party activists, government employees or officials, despite that they knew nothing much about farming.
Another major reason for failing to use the land is that these beneficiaries were given the property under 99-year leases, offer letters and permits, making it unusable collateral.
This is because the land was not in their names, something which financial institutions typically require before disbursing loans.
After years of being unable to access loans using this land as collateral, the government decided that the land will now be held under bankable, registrable and transferable tenure documents.
Consequently, in December 2024, the government launched the Farm Title Deed Programme for A2 and A1 for beneficiary farmers in line with sections 289, 293 and 295 of the Constitution of Zimbabwe.
“I am actually very, very delighted that the titles were actually 99-year leases. Now, they are turning them into full title deeds,” Adesina said during the ongoing AfDB weeklong annual meetings that began on Monday in the Ivory Coast.
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He said before making the land have full title, the land was essentially useless.
“So today, because we have title, it means the value of the land is so high and that is why they (Zimbabwe) are going to be able to raise maybe US$8 or US$9 billion as a country,” Adesina added.
“So, it has taken a lot of courage, a lot of work.”
The annual meetings are the 60th Annual Meeting of the Board of Governors of the AfDB and the 51st Meeting of the Board of Governors of the African Development Fund.
“It is my last time as the president of the African Development Bank to which I will be speaking on this issue,” Adesina said, “but I would like to end with three things. First, let us make sure that we appropriately support Zimbabwe to clear the arrears.”
According to the Treasury, as of December 2024, Zimbabwe’s total public and publicly guaranteed debt stock stood at US$21 billion, comprising external debt of US$12,2 billion and domestic debt of US$8,8 billion.
Part of the domestic debt includes US$3,5 billion which the government owes the former white farmers.
These high debt levels have prevented Zimbabwe from accessing fresh loans.
“We have done it for Somalia, we have done it for Sudan. We need US$2,6 billion of bridge financing, together let us get it done,” Adesina continued.
The Compensation Committee of Former Farm Owners in August and December 2024 approved 740 applications for compensation of former farm owners, amounting to US$587,4 million.
“The government allocated US$35 million in the 2024 National Budget for the compensation of former farm owners, with imminent disbursements expected to 740 farms cleared for payment so far,” Treasury said in a statement.
“In line with the revised Global Compensation Deed payment offer, Treasury will make payments amounting to US$5,87 million representing 1% of capital amount of US$587,4 million, for the compensation of the 740 applications by the former farm owners.”
The balance, after netting off 1% of capital amount (US$5,87 million), and interim relief payments paid to each of the 740 approved applications, will be settled through the issuance of US denominated Treasury bonds with maturities ranging between two and 10 years and a coupon of 2%.
“For the first batch of 378 former farm owners, amounting to US$311 million, government paid US$3,1 million as 1% cash payment, in March 2025, and US$308 million was issued with Treasury bonds on April 1, 2025,” Treasury said.
The government paid US$20 million to 85 farms as compensation for Bilateral Investment Promotion and Protection Agreements protecting farmers.
An additional US$20 million has been provided for in the 2025 National Budget.
