The United States Congress has moved to repeal the Zimbabwe Democracy and Economic Recovery Act of 2001, legislation that has restricted Zimbabwe’s access to international credit for over two decades, according to a bill introduced Tuesday in the House of Representatives.
Republican Representative Brian Mast, chairman of the House Foreign Affairs Committee, introduced H.R.5300, the Department of State Policy Provisions Act, which includes provisions to eliminate ZDERA sanctions while imposing new conditions tied to compensation for white farmers displaced during Zimbabwe’s land reform programme.
“The United States shall not support any new or expanded funding from the International Monetary Fund or the International Bank for Reconstruction and Development for the Government of Zimbabwe unless the Government of Zimbabwe shall commit, within 12 months of the approval of such new or expanded funding, to remit all outstanding arrears owed under the Global Compensation Deed, inflation adjusted to the date of enactment, and compensation shall not be in the form of Zimbabwe issued securities,” the bill states.
Zimbabwe agreed in 2020 to pay US$3.5 billion to compensate approximately 4,500 white farmers for improvements on seized farms. As at April this year, payment was approved for the first group of 378 farms, for a total of US$311 million. However, just 1% of the compensation – US$3.1 million – was to be paid in cash. The rest is to be issued in USD-denominated Treasury bonds.
The proposed legislation demands Zimbabwe pay the full compensation in hard currency within one year of receiving any new multilateral funding, rejecting the bond-based payment structure currently in place.
The legislation will be considered as part of a full committee markup scheduled for September 17, 2025.
Zimbabwe Presidential spokesman George Charamba described the development as “a major breakthrough” for the country on Monday.
“It is not easy to get America to rescind a law with bi-partisan support. Both Republicans and Democrats supported ZDERA, making it a consensual American law against Zimbabwe,” Charamba said in a statement.
ZDERA was enacted in 2001 following Zimbabwe’s controversial land reform programme, which saw the seizure of white-owned commercial farms for redistribution to black Zimbabweans. The legislation enabled the United States to oppose loans and debt relief from institutions including the World Bank and International Monetary Fund.
Zimbabwe’s total foreign debt is $21 billion — including interest — which it has been failing to service for years. The country has been in arrears with the World Bank and IMF since 2000 and 2001, respectively.
Treasury allocated US$10 million in the 2025 National Budget for farmer compensation, a fraction of the total obligation. Government officials say the payment plans using bonds are necessary as Zimbabwe cannot pay US$3.5 billion in a short period.
The 2018 amendment to ZDERA tied Zimbabwe’s access to international credit to enforcement of Southern African Development Community tribunal rulings that declared the land reform discriminatory and demanded full compensation for land, not just improvements.
Zimbabwe’s Constitution only provides for compensation for improvements and not for the land itself, except under Bilateral Investment Promotion and Protection Agreements.
If passed, the new legislation would mark a significant shift in US-Zimbabwe relations while maintaining pressure over the land compensation issue that has dominated the relationship for two decades.
