The Zimbabwean government is in the process of paying almost R6 billion to white former farmers whose land the nation seized in 2000.
This process will help the government get access to international creditors as the country tries to restructure the nation's debt pile, according to Bloomberg.
According to the African Development Bank, as of August 2024, Zimbabwe's total public debt was estimated at about $21 billion (R380 billion).
The debt burden has placed a huge amount of pressure on the government and has locked it out of international capital markets for more than 20 years.
African Development Bank president Akinwumi Adesina said around 439 white former landowners have been identified by the Zimbabwean government and will receive financial settlements to the tune of $331 million (R5.9 billion).
Adesina is in Zimbabwe this week and spoke after a debt conference, held in Harare.
He said that Zimbabwe had set aside $35 million (R563 million) in this year's budget which will be paid via bonds.
Zimbabwe’s struggling currency
In September, Zimbabwe was forced to devalue its new currency, the Zimbabwe Gold (ZiG) by 40%.
It was launched in April 2024 and was backed by $575 million (R10.4 billion) worth of hard assets.
The government was forced to slash the value of the ZiG due to the effects of an inflation crisis.
Zimbabwe is battling high inflation that has been worsened by a severe drought in the region.
The interest rate in Zimbabwe increased to 5.94% in September from 5.89% in August of 2024.
In the country’s latest economic review, the ZiG depreciated by 4.76% against the dollar in October.
IOL BUSINESS