Zimbabwe has started paying compensation to foreign landowners whose commercial farms were seized during a chaotic land reform programme two decades ago.
The southern African country, which is suffocating under a debt of $21 billion, has committed to pay over $3 billion in compensation to white Zimbabweans who lost their farms during the agrarian reforms.
Finance minister Mthuli Ncube said at least $21 million out of $146 million owed to owners of seized farms that were under Bilateral Investment Protection Agreements (Bippas) will be paid this year while the balance will be covered over the next four years. “I am pleased to announce that the compensation has begun,” Prof Ncube said.
“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. The payments towards the compensation of investors under Bippa protection began in the second week of January 2025. Payments are being made to the claimants’ bank accounts of choice.”
He said the payments to farm owners under Bippas marked a critical step in Zimbabwe’s Arrears Clearance and Debt Resolution Process that is being championed by African Development Bank (AfDB) president Akinwumi Adesina.
In 2019, President Emmerson Mnangagwa’s government agreed to pay $3.5 billion in compensation to local white farmers who lost their land during the land reforms while foreign white farmers were allowed to apply to get their seized properties back.
Prof Ncube said only claimants from countries with Bippas signed and ratified before the 2000 land reform programme were eligible for compensation.
The claimants are from Denmark, Germany, the Netherlands, Switzerland and the former Yugoslavia.
Zimbabwe’s announcement that it was finally paying the compensation was welcomed by Harare-based ambassadors of Germany, the Netherlands and Switzerland.
“The framework established by the government of Zimbabwe leading to the full compensation of affected Bippa farmers protected under Bilateral Investment Promotion and Protection Agreements, is indeed a historic achievement,” the ambassadors said in a joint statement.
“Several affected investors have received initial payouts and an emerging sense of closure exists. It marks a significant milestone and we consider it a very encouraging step towards a comprehensive and fair settlement for farmers and investors in Zimbabwe, be it in terms of financial compensation or land tenure.”
Zimbabwe has been introducing a raft of agrarian reforms as part of engagements set by creditors to kick-start negotiations for the arrears clearance and these measures include compensating former landowners and giving title deeds to beneficiaries of the land redistribution programme.
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