THE United States Congress has introduced a Bill proposing that America will repeal the long-standing Zimbabwe Democracy and Economic Recovery Act (ZDERA) on condition Harare compensates white farmers for lost land.
Brian Mast, a Republican from Florida and chairperson of the House of Foreign Affairs Committee, introduced the omnibus Bill, which proposes broad changes to US foreign policy, from how its citizens engage hostile foreign entities to stepping up its economic interests in Africa.
He said the Bill “prevents ideologues masquerading as diplomats from using their posts to push left-wing agendas instead of America’s interests”.
The US enacted ZDERA in 2001, which imposed economic sanctions on Zimbabwe, allegedly to provide for a transition to democracy and to promote economic recovery.
ZDERA’s policy was meant to “support the people of Zimbabwe in their struggle to effect peaceful, democratic change, achieve broad-based and equitable economic growth and restore the rule of law”.
But the repeal comes with conditions.
Economic co-operation with the US will depend on settling an old quarrel: compensating white former commercial farmers who lost their farms during the land reform programme.
In the Department of State Policy Provisions Act, Mast proposes broad changes to US foreign policy, from how its citizens engage hostile foreign entities to stepping up its economic interests in Africa.
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“The United States shall not support any new or expanded funding from the International Monetary Fund or the International Bank for Reconstruction and Development (commonly known as the World Bank) for the government of Zimbabwe unless the government of Zimbabwe shall commit, within 12 months of the approval of such new or expanded funding, to remit all outstanding arrears owed under the Global Compensation Deed, inflation-adjusted to the date of enactment and compensation shall not be in the form of Zimbabwe issued securities,” the Bill read.
“Failure to comply with this provision shall result in an immediate cessation of all United States support for any further funding from these institutions.”
In 2020, Zimbabwe reached a controversial deal with white former farmers.
Under that deal, Harare will not compensate for land taken over under the land reform programme, but only for improvements on the farms.
The total compensation to be paid is US$3,5 billion.
As at April this year, payment was approved for the first group of 378 farms, for a total of US$311 million.
However, just 1% of the compensation — US$3,1 million — is to be paid in cash.
The rest is to be issued in US dollar-denominated Treasury bonds.
These bonds carry a 2% annual coupon rate with maturities of two to 10 years.
Treasury allocated US$10 million in the 2025 national budget for farmer compensation.
— Additional reporting by newZWire
