Online Reporter
THE Government has begun compensating white former commercial farmers whose farms were covered under Bilateral Investment Protection and Promotion Agreements (BIPPAs) but were acquired during the Land Reform Programme.
The payments follow the release of funds from the US$20 million allocated in the 2024 National Budget for this purpose, thereby marking a historic step in Zimbabwe’s Arrears Clearance and Debt Resolution Process.
The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, confirmed the commencement of payments in a statement released on Tuesday.
“I am pleased to announce that the compensation process has begun. We believe that this process is crucial for building trust, honouring our commitments and ensuring consistency with our Constitution as we address Zimbabwe’s debt challenge,” he said.
Compensation details
Payments to eligible farm owners — from Denmark, Germany, the Netherlands, Switzerland and former Yugoslavia — began in January 2025 and are being deposited directly into the claimants’ bank accounts.
Only those covered under BIPPAs before 2000 qualify for compensation, with 94 farms approved under the programme.
The move has been welcomed by international stakeholders, with the ambassadors of Germany, the Netherlands and Switzerland issuing a joint statement praising the Zimbabwean Government’s efforts.
“The framework established by the Government of Zimbabwe leading to the full compensation of affected BIPPA farmers is indeed a historic achievement,” the statement reads.
“We commend the Government’s allocation of funds in the National Budget to make this compensation a reality. Several affected investors have received initial pay-outs, and an emerging sense of closure exists. Now, the Government needs to keep this positive momentum.”
A key reform in debt resolution
Compensating BIPPA-protected investors aligns with Section 295(2) of the Constitution, which guarantees compensation for improvements to individuals whose property was protected under international agreements at the time of acquisition.
The African Development Bank Group presidentm Dr Akinwumi Adesina, who also champions Zimbabwe’s Arrears Clearance and Debt Resolution Process, praised the initiative.
“The compensation demonstrates the Government’s goodwill and commitment to building trust and improving investor confidence in the country,” he said.
“The progress Zimbabwe has made and the commitment and resilience it is showing calls for support from development partners to facilitate ongoing reforms and provide much-needed assistance to vulnerable communities.”
This compensation is part of Zimbabwe’s Structured Dialogue Platform, established in 2022 to engage creditors and development partners on economic and governance reforms.
The process is co-chaired by the Office of the President and Cabinet, Switzerland and the United Nations Development Programme (UNDP).
At the high-level Structured Dialogue Platform meeting held in Harare in November 2024, President Mnangagwa reaffirmed the Government’s commitment to clearing arrears.
Future payments and economic strategy
While US$20 million has already been disbursed, the Government has committed an additional US$125,9 million to be paid over the next four years (2025-2028) through fiscal allocations in annual budgets.
This compensation represents a major step forward in Zimbabwe’s efforts to rebuild investor confidence, strengthen international relations and secure economic stability.
