News / National
Total value compensation of farmers estimated at $10 billion
05 May 2017 at 06:48hrs | Views
A political analyst Vince Musewe has said the total value of estimated compensation for land and fixed assets only, is estimated to be between $7 and $10 billion.
He said there are an estimated 4,500 commercial farming businesses with about 5,300 properties whose ownership is disputed and who require compensation.
"The total value of estimated compensation for land and fixed assets only, is estimated to be between $7 and $10 billion. Once fair value has been established in an inclusive manner to remove the existing conflict and compensation paid, these assets can then be released to a new land tenure dispensation that is inclusive," he said.
"If we assume that the value of the assets involved as US$ 7-10 billion, this will mean that when these funds can be released into the economy and they will trigger significant macro-economic recovery as follows: an increase in liquidity in the banking sector; re-establishment of an active market for land in rural areas with an increase in bank lending to agriculture; an increase in local private investment capital; strengthening of property rights in the wider economy; create funding for infrastructure and utilities development; unleash a multiplier effect leading industrial recovery; and trigger off new employment creation. Above all, will be the positive impact on the economy due to the confidence that can be created and this will lead to an increased inflow of foreign investment capital in the all sectors of the economy."
He said a resolution of the crisis over land in Zimbabwe with the payment of fair compensation would help restore normal relations with the international community.
"A new dispensation must rationalise the issue of land ownership and tenure to ensure equitable and fair distribution of this national asset. However, that rationalisation must be underpinned by productive use of land assets and this can only happen when we reinstate the value of land on Zimbabwe's balance sheet," he said.
He said there are an estimated 4,500 commercial farming businesses with about 5,300 properties whose ownership is disputed and who require compensation.
"The total value of estimated compensation for land and fixed assets only, is estimated to be between $7 and $10 billion. Once fair value has been established in an inclusive manner to remove the existing conflict and compensation paid, these assets can then be released to a new land tenure dispensation that is inclusive," he said.
He said a resolution of the crisis over land in Zimbabwe with the payment of fair compensation would help restore normal relations with the international community.
"A new dispensation must rationalise the issue of land ownership and tenure to ensure equitable and fair distribution of this national asset. However, that rationalisation must be underpinned by productive use of land assets and this can only happen when we reinstate the value of land on Zimbabwe's balance sheet," he said.
Source - Byo24News
