'Zimbabwe could unlock US$9bn from retaken land'

The outgoing president of the African Development Bank (AfDB), Akinwumi Adesina, has revealed that Zimbabwe could unlock up to US$9 billion from land seized during the 2001 fast-track land reform programme, provided that formal title deeds are issued to the beneficiaries.

The controversial land reform initiative aimed to redress colonial-era land imbalances by redistributing white-owned farms to black Zimbabweans. However, many of the new landowners, often affiliated with the ruling Zanu PF party or government, lacked farming expertise and failed to utilise the land productively. A significant challenge has been that these farms were allocated under 99-year leases, offer letters, and permits rather than full ownership, rendering the land unusable as collateral for loans from financial institutions.

Recognising this obstacle, the Zimbabwean government launched the Farm Title Deed Programme in December 2024 to convert the leases into bankable, registrable, and transferable title deeds for A1 and A2 farmers, in accordance with sections 289, 293, and 295 of the Constitution.

Adesina praised this move during the AfDB's annual meetings in Ivory Coast, describing it as a courageous and critical step. "I am actually very, very delighted that the titles were actually 99-year leases. Now, they are turning them into full title deeds," he said. "Before, 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."

The AfDB annual meetings, marking the 60th Annual Meeting of the Board of Governors of the AfDB and the 51st Meeting of the African Development Fund, also saw Adesina make a plea for international support to help Zimbabwe clear its arrears. Zimbabwe's public and publicly guaranteed debt stood at US$21 billion by December 2024, split between US$12.2 billion in external debt and US$8.8 billion in domestic debt, which includes US$3.5 billion owed to former white farmers.

High debt levels have severely limited Zimbabwe's access to fresh loans. Adesina cited precedents where the AfDB had helped countries like Somalia and Sudan and called for US$2.6 billion in bridge financing to assist Zimbabwe in overcoming its financial hurdles.

The government has made progress in compensating former farm owners. In 2024, the Compensation Committee approved 740 applications amounting to US$587.4 million. Treasury allocated US$35 million in the 2024 budget toward this compensation, with imminent payments planned for the cleared farms.

According to Treasury statements, an initial 1% cash payment of US$5.87 million has been made, with the remaining balances to be settled via US dollar-denominated Treasury bonds maturing between two and ten years and carrying a 2% coupon rate. For the first batch of 378 farms, valued at US$311 million, US$3.1 million was paid in cash in March 2025, with the remaining US$308 million issued as Treasury bonds in April 2025.

The government has also paid US$20 million to 85 farms under Bilateral Investment Promotion and Protection Agreements, with an additional US$20 million provided in the 2025 budget for further compensation.

Adesina's remarks underscore the critical role that securing full land ownership through title deeds plays in unlocking Zimbabwe's agricultural potential and accessing financial resources essential for the country's development.