If approved by the government, it would mark a major policy shift. President Robert Mugabe previously said payments would be made only for infrastructure investment such as dams, roads and buildings on seized farms.
The ministry's plan to set up a lands compensation fund comes as the government seeks to mend ties with the IMF and Western donors, and kick-start growth in an economy half the size it was in 2000.
Finance Minister Patrick Chinamasa has said Zimbabwe will pay lenders such as the IMF, World Bank and the African Development Bank about $1.8-billion in debt in the hope that the IMF will resume lending this year.www.neemayetu.com