U.S. House Backs Bill to Repeal ZDERA, Ties Move to $3.5bn Compensation

The United States House of Representatives has introduced legislation that could repeal the Zimbabwe Democracy and Economic Recovery Act (ZDERA) of 2001, a law that has long restricted the country’s access to international financial assistance.

The proposed measure, H.R. 5300, was tabled last week as a 248-page foreign policy bill. It seeks to lift the two-decade-old sanctions framework but ties the repeal to Zimbabwe’s fulfilment of a major financial obligation. Under the draft law, Harare must pay $3.5 billion in compensation arrears to former white commercial farmers within 12 months, as outlined in the 2020 Global Compensation Deed.

Beyond sanctions relief, the legislation outlines provisions to strengthen U.S. economic ties with Zimbabwe. It calls for expanded trade and investment, particularly in the country’s strategic mineral resources, including lithium and platinum—commodities that have drawn significant global interest amid rising demand for clean energy technologies.

The bill will next move to the Senate before requiring the signature of President Joe Biden to become law.

Reactions in Zimbabwe have been mixed. Some commentators expressed optimism that the repeal could ease economic pressure, restore credit lines, and improve relations with Washington. Others voiced concern over the steep compensation demand, warning it could worsen fiscal strains. Critics also questioned whether U.S. interest in Zimbabwe’s mineral wealth underpinned the proposed reforms.

ZDERA was enacted in 2001 in response to what U.S. lawmakers described as democratic backsliding, human rights abuses, and chaotic land reforms in Zimbabwe. It effectively barred the country from receiving loans and debt relief from international financial institutions.

If passed, H.R. 5300 would mark the most significant shift in U.S.-Zimbabwe policy in nearly 25 years.

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