The Zimbabwean government has begun compensating former farm owners whose land was seized during the Fast-Track Land Reform Programme in the early 2000s. These individuals are safeguarded under Bilateral Investment Protection and Promotion Agreements (BIPPAs).
Finance Minister Mthuli Ncube announced that payments have already started, sourced from a US$20 million allocation in the 2024 National Budget designated for compensation.
Describing the initiative as a significant milestone, Ncube emphasized its role in Zimbabwe’s Arrears Clearance and Debt Resolution Process. He stated:
“I am pleased to confirm that the compensation process is underway. This initiative is essential for rebuilding trust, fulfilling our commitments, and aligning with our Constitution as we work to address Zimbabwe’s debt situation.”
According to the Ministry of Finance, payments to BIPPA-protected investors commenced in mid-January 2025 and are being transferred to claimants’ preferred bank accounts.
The Treasury clarified that only claimants from countries with BIPPAs established and ratified before the 2000 land reforms qualify for compensation.
A total of 94 farms have been approved for compensation, with beneficiaries from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia. The valuations for these farms are as follows:
- Denmark: 6 farms, valued at US$13.4 million
- Germany: 14 farms, valued at US$41.0 million
- Netherlands: 46 farms, valued at US$88.2 million
- Switzerland: 27 farms, valued at US$27.0 million
- Former Yugoslavia: 1 farm, valued at US$3.3 million
This brings the total number of farms to 95, with a combined valuation of US$145.9 million.
The number of farmers set to receive compensation is as follows:
- Denmark: 5 farmers
- Germany: 7 farmers
- Netherlands: 33 farmers
- Switzerland: 10 farmers
- Former Yugoslavia: 1 farmer
In total, 56 farmers are scheduled to be compensated.
Diplomats from Germany, the Netherlands, and Switzerland, based in Harare, welcomed the development, describing it as a landmark achievement. In a joint statement, they expressed:
“The framework established by the Zimbabwean government to facilitate full compensation for BIPPA-protected farmers is a significant breakthrough. We appreciate the government’s commitment, as reflected in the 2024 National Budget, to ensure this process becomes a reality.
Several affected investors have already received initial payments, bringing a sense of closure. This marks a major step forward, and we view it as an encouraging move towards a fair and comprehensive resolution for farmers and investors. Sustaining this momentum will be crucial.”
Akinwumi Adesina, President of the African Development Bank Group and Champion of Zimbabwe’s Arrears Clearance and Debt Resolution efforts, commended the move, stating:
“The compensation payments reflect the government’s goodwill and dedication to fostering trust in this process while enhancing investor confidence in Zimbabwe.
The progress Zimbabwe has made, along with its commitment and resilience, underscores the need for support from development partners. This assistance will help facilitate the country’s ongoing reforms and provide much-needed relief, particularly to vulnerable communities.”
The compensation process is a critical component of the Structured Dialogue Platform, which was launched in December 2022 to engage with creditors and development partners on economic and governance reforms. This platform plays a key role in Zimbabwe’s broader strategy to resolve its arrears and debt obligations.
Following the disbursement of the US$20 million allocated in the 2024 National Budget, the remaining US$125.9 million will be distributed through a multi-year payment plan. This will be financed through fiscal allocations in the national budgets from 2025 to 2028.
For comments, Feedback and Opinions do get in touch with our editor on WhatsApp: +44 7949 297606.