Zim finance minister dismisses proposal to settle farmers’ claims
24 JAN 2013 20:58 – INYASHA CHIVARA
Zimbabwe’s government is unlikely to entertain a proposal by a farmers’
union, with Finance Minister Tendai Biti calling it an “elitist solution”.
The proposal by the Commercial Farmers’ Union (CFU) seeks the valuation of
their former farms, followed by the issuance of bonds underwritten by an
international financial institution.
The union’s president, Charles Taffs, said that there had been broad
consultations about the issue for the past two years, which had included the
government, international finance institutions and the black farmers
occupying the land. “We are re-establishing the value of what has been lost
[and] we are monetising that value and placing it back into the economy,” he
said.
But Taffs would not reveal the name of the institution that would underwrite
the bonds. “If it [the proposal] was going to be engaged as a policy of
government, we would be getting Bretton Woods institutions coming to the
table,” he said.
But Finance Minister Tendai Biti said that compensation was a national issue
and could not be restricted to a “clique of people”.
The issue of the white farmers, whether legitimate or not, Biti said, could
not override inclusive national programmes.
“These are neoliberal solutions that look at one race, one sector of the
economy. I have a problem with an elitist solution to things,” Biti said.
“What is required is a broad majority solution that creates a win solution.
“The whole country needs compensation. I know thousands of people whose
homes were burnt by Zanu-PF. I know of many homes that were destroyed. The
issue of compensation is a national issue which cannot be restricted to
white people only.”
Taffs said the major concern was “the fear that we want to turn back the
clock”. He said the CFU “knows that is not a reality and we don’t actually
want that”.
“We want to go forward in a pragmatic manner … where every Zimbabwean has
to be treated equally,” he said.
CFU’s proposal
Lands, Land Reform and Resettlement Minister Herbert Murerwa said he had not
yet received the proposal.
Under the CFU’s proposal, bonds would be issued and managed by a recognised
accounting firm.
A land bank would be created to handle the more than 5 000 title deeds held
by former farmers, which would be ceded to the bank. The bonds, which will
be assigned a value, would be offered for sale to the current beneficiaries
on the land.
The CFU believes its affected members would be able to reinvest in the
economy and mentor the new beneficiaries and help to guarantee food
security.
The land bank, the proposal says, will receive initial financing from donors
and international finance institutions.
Litigation
Commercial farmers have sued the Zimbabwean government in South Africa and
at the International Court for Settlement of Investment Disputes.
The Zimbabwean government’s international assets could go under the hammer
to settle compensation arrears for other white farmers.
The CFU argues that such litigation could be halted if their proposal were
to be adopted.
African Investment Markets’ Farayi Dyirakumunda said, for the CFU’s proposal
to succeed, the underwriter would have to be known to instil market
confidence in the initiative.
“The proposed bond will only work if there can be a reputable foreign
underwriter because the local market will not have the capacity or appetite
for such a transcation. On that basis, I do not see this materialising in
the foreseeable future,” he said.
“It also remains unclear who the underwriter will be or the specific
indentures and covenants that would make the bond attractive for both the
issuer and holder.”