The agreement was announced Wednesday at a signing ceremony at the State House in Harare. The $3.5 billion plus interest was negotiated from a government valuation of $1.2 billion versus $5.4 billion by former farmers and is part of a comprehensive compensation agreement between white commercial farmers and the government of President Emmerson Mnangagwa. Zimbabwean President Emmerson Mnangagwa (l., aback) will attend a ceremony to sign the compensation agreement at the State House in Harare, Zimbabwe, on 29 July 2020. Zimbabwe`s government and former white commercial farmers signed a $3.5 billion compensation agreement for farmers on Wednesday. (Photo: Wanda/Xinhua) Zimbabwe`s government on Wednesday signed a $3.5 billion compensation agreement with the country`s expropriated white peasants. On Wednesday, Zimbabwe agreed to pay $3.5 billion in compensation to white farmers whose land was expropriated by the government to relocate black families, moving closer to the solution of one of the most controversial policies of the Robert Mugabe era. «My government says the Zimbabwean government has no obligation to compensate for the land it acquires. Therefore, our conclusion of the contract does not create any liability,» he said. With regard to the fomental equalization agreement signed today, my government reaffirms that the Government of Zimbabwe has no obligation to compensate for the land acquired,» he said. «The Constitution requires us to compensate for all the improvements made to the land.» Farmers would receive 50% of the compensation after one year, the balance in five years.
«The money is not yet available,» he said. «Although they signed an agreement, it doesn`t mean the money is going to be distributed now. Now that they have signed an agreement, they will use this agreement – no doubt – they will use this signature as a way to raise money. On behalf of farmers, Andrew Pascoe, president of the Union of Commercial Farmers, said the agreement was an important step that would resolve «this outstanding issue.»