Harare, Zimbabwe – The Zimbabwean government has officially begun compensating former landowners whose farms were seized during the Fast-track Land Reform Programme of the early 2000s. The compensation applies exclusively to landowners protected under Bilateral Investment Protection and Promotion Agreements (BIPPAs), as part of Zimbabwe’s Arrears Clearance and Debt Resolution Process.
🔗 Read more on Zimbabwe’s land reform policies
Compensation Payments Begin
Finance Minister Mthuli Ncube announced that funds from the US$20 million allocation in the 2024 National Budget have already been disbursed to qualifying farmers.
“I am pleased to announce that the compensation process has begun. We believe this step is crucial for building trust, honoring our commitments, and ensuring consistency with our Constitution as we address Zimbabwe’s debt challenge,” said Ncube.
According to the Ministry of Finance, payments to claimants began in the second week of January 2025, directly transferred to their preferred bank accounts.
Who is Eligible for Compensation?
The Treasury confirmed that only landowners from countries with BIPPAs signed and ratified before the 2000 Land Reform Programme are eligible for compensation. These include:
📌 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 approved farms to 94, collectively valued at US$145.9 million.
Breakdown of Beneficiaries
🔹 Denmark: 5 farmers
🔹 Germany: 7 farmers
🔹 Netherlands: 33 farmers
🔹 Switzerland: 10 farmers
🔹 Former Yugoslavia: 1 farmer
A total of 56 farmers are set to receive compensation.
🔗 Explore Zimbabwe’s land tenure policies
International Reactions and Diplomatic Support
The compensation plan has been welcomed by ambassadors from Germany, the Netherlands, and Switzerland, who hailed it as a “historic achievement.”
“The framework established by the Zimbabwean Government for the full compensation of BIPPA farmers is a significant milestone. Several affected investors have already received initial payouts, which is an encouraging step towards a comprehensive settlement,” said the diplomatic representatives.
Akinwumi Adesina, President of the African Development Bank Group, also praised the move, stating:
“The compensation demonstrates the Government’s goodwill and commitment to improving investor confidence in the country.”
Future Payments and Multi-Year Plan
The Ministry of Finance confirmed that the remaining US$125.9 million will be paid through a multi-year payment plan, which will include:
✅ Annual National Budget allocations from 2025 to 2028
✅ Structured installments to ensure fair and timely payments
✅ Continued engagement with creditors and development partners
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What This Means for Zimbabwe’s Economy
The compensation process is a key component of Zimbabwe’s economic recovery strategy, which aims to:
📌 Improve investor confidence in Zimbabwe’s agriculture sector
📌 Address outstanding land disputes from the 2000 Land Reform Programme
📌 Enhance bilateral relations with countries affected by past land seizures
📌 Support Zimbabwe’s Arrears Clearance and Debt Resolution Process
The Zimbabwean government’s decision to compensate former landowners under BIPPA agreements marks a major step toward economic reform, diplomatic reconciliation, and investor confidence-building. With structured payments planned until 2028, this move signals Zimbabwe’s commitment to honoring international agreements and fostering economic stability.
