By Victor Fanuel
HARARE– A Bill before the United States Congress could repeal the Zimbabwe Democracy and Economic Recovery Act (ZDERA), a law that for more than two decades has restricted Zimbabwe’s access to international credit.
The proposal, tabled by Republican Congressman Brian Mast, Chair of the House Foreign Affairs Committee, is contained in the “Department of State Policy Provisions Act” (H.R. 5300), a wide-ranging foreign policy measure that also seeks to reposition U.S. engagement in Africa.
If passed, Section 303 of the Bill would repeal ZDERA, which was enacted in 2001 and amended in 2018.
ZDERA has long been viewed by Harare as a key obstacle to economic recovery, having limited U.S. support for Zimbabwe in accessing funding from the World Bank and the International Monetary Fund (IMF).
However, the repeal would come with stringent new conditions.
Section 304 of the Bill states that the U.S. “shall not support any new or expanded funding” from multilateral lenders unless Zimbabwe commits within 12 months to settle all arrears owed under the US$3.5 billion Global Compensation Deed signed in 2020 with white former commercial farmers.
Payments must be adjusted for inflation and made in hard cash rather than Zimbabwe-issued securities.
“Non-compliance would result in an immediate stop to U.S. support for such funding,” the Bill stipulates.
Zimbabwe agreed in 2020 to compensate dispossessed farmers for improvements on seized land rather than for the land itself.
The government issued U.S. dollar-denominated bonds to finance the deal, but actual cash payments have lagged.
Only US$10 million was budgeted this year, while the remainder is tied up in long-term bonds.
The new U.S. demands would force Zimbabwe to settle the arrears in cash within a year of securing any new IMF or World Bank financing — a heavy burden for a country already saddled with a US$21 billion debt.
Despite the conditions, the Zimbabwean government has welcomed the Bill as a breakthrough in its long-running effort to end international isolation.
“Zimbabweans, this is a major development for our country. Really big if it comes through, as looks likely,” presidential spokesperson George Charamba said in a statement.
“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. It has been with us – a huge albatross since 2001,” added Charamba.
Charamba credited sustained regional lobbying for the development, pointing to Southern African Development Community (SADC) solidarity, including the bloc’s designation of October 25 as Anti-Sanctions Day.
“While not yet uhuru, we hear the sounds of breaking shackles a short distance away.
“Well done President ED Mnangagwa; your policy of engagement and re-engagement has delivered its ultimate fruit — well, not quite yet, but arguably just about to,” he added.
He acknowledged, however, that challenges remain, including ongoing restrictions on Mnangagwa himself.
“Of course, we still chafe that our President is still on sanctions, meaning the foremost face of the Zimbabwean State is still constrained, but this development presages many possibilities ahead,” said Charamba.
ZDERA was originally introduced in response to Zimbabwe’s fast-track land reform programme, alleged human rights abuses, and the country’s involvement in the Democratic Republic of Congo war.
The 2018 amendment further tied international credit access to the resolution of compensation claims by white farmers and compliance with regional tribunal rulings.
Harare has consistently argued that under the constitution, compensation is only due for improvements to the land, not for the land itself, except where Bilateral Investment Promotion and Protection Agreements apply.
That position has been at the heart of the two-decade standoff with Western capitals.
Now, with U.S. lawmakers considering a repeal of ZDERA but replacing it with tough fiscal requirements, Zimbabwe faces a new test: whether it can seize the opportunity for re-engagement without stumbling over the politically fraught issue of land compensation.
If enacted, the Bill would also broaden U.S.-Africa policy beyond Zimbabwe, emphasizing increased trade and investment ties with the continent.
Section 304 commits Washington to “promote and facilitate two-way trade and investment with African countries” and to “strengthen commercial ties and support economic growth.”
For Zimbabwe, however, the immediate focus remains clear: breaking free from ZDERA’s long shadow will depend not only on American lawmakers but also on Harare’s ability to deliver on the costly promises it has made.
