Zimbabwe engages financial advisors for US$3,5bn farmer compensation

THE Government is seeking international financial advisors to assist in raising US$3,5 billion the country requires under the Global Compensation Deed to pay former farm owners.

The former farm owners who are indigenous Zimbabweans or citizens of countries that had ratified Bilateral Investment Protection and Promotion Agreements or Bilateral Investment Treaties with Zimbabwe at the time their land was compulsorily acquired for resettlement, are entitled for compensation for land and improvements in line with the country's laws. At the end of July this year, Government and the former farm owners signed the Global Compensation Deed, marking a major milestone between the restoration of trust between the two parties.

On Friday, the Ministry of Finance and Economic Development invited interested financial advisors to come on board.

"Financial advisors are hereby invited to submit Express of Interest (EOI) for the provision of financial advisory services to raise funds, to be utilised to pay the Global Compensation amount to former farm owners as per the Global Compensation Deed signed on 29 July 2020, under which the former farm owners will be compensated in accordance with Sections 72 and 295 of Zimbabwe's Constitution," said the Treasury.

It explained that interested consulting firms should provide information demonstrating that they have the required experience, competences, skills, and qualifications relevant for performance of the services whether as individual firms, joint ventures or as consortia.

The minimum criteria for short-listing of consulting firms are that the consulting firm must be a registered entity, have a minimum of three trade references, at least 10 years of experience for each individual consulting firm singularly or in the consortium or joint venture and evidence of availability of the necessary project team to undertake the project.

Qualified and experienced financial advisory firms are required to submit detailed company profile, company registration documents from the country of origin, detailed curriculum vitae of key personnel and professional staff, a summary of the consulting firm's experience in similar assignments, together with the names and contact details of persons connected with those assignments, as well as a clear understanding of the scope and nature of the tasks required for the assignment, supported by preliminary solution maps.

"The evaluation criteria, drawing up of the short-list and selection procedure shall be in accordance with Zimbabwe's Public Procurement and Disposal of Assets Act [Chapter 22:23]."

Interested financial advisors can obtain the detailed information memorandum from the Ministry of Finance and Economic Development offices by October 22.

Meanwhile, the Government has announced that former farm owners on compulsorily acquired land and are still farming should urgently regularise their tenure before considerations can be made for the issuance of 99-Year Leases.

The Global Compensation Deed was done in the context of moving the Vision 2030 agenda forward and therefore to ensure its timely realisation through increased agricultural productivity, among other initiatives.

The Government's highest drive is to increase production and productivity through collaborative efforts of all citizens. This includes skills transfer from former farm owners to the resettled farmers, and the provision of an attractive land tenure system that would be supportive of increased levels of investment on agricultural land.