HARARE — More than 1,300 former white commercial farmers have agreed to a revised compensation plan with the Zimbabwean government, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube announced.
The updated agreement compensates farmers for improvements made on the properties they occupied, which were acquired by the government during the land reform program in the early 2000s. This deal marks a significant step in addressing long-standing disputes over land compensation.
Initially, the government and two farmer unions—the Commercial Farmers Union (CFU) and the Southern African Commercial Farmers Alliance—reached an agreement in April 2021, known as the Global Compensation Deed. This deal stipulated payments totaling US$3.5 billion, with the plan to disburse half the amount within the first year and the remainder in four annual installments of US$437.5 million each.
The agreement received support from 95% of the 2,896 farmers who voted on it. However, the government’s efforts to secure the necessary funding faced challenges, leading to delays in meeting its compensation commitments.
A revised compensation plan was introduced but was rejected by some farmers following a June 2023 referendum. Critics of the referendum argue that it did not accurately represent the views of all affected farmers, especially those living abroad who could not participate.
Minister Ncube’s latest update reveals that over 1,300 former commercial farmers have signed the revised agreement, with the administrative payment process now underway. The government has also initiated a verification process and invited applications through national newspapers for compensation related to farms protected by Bilateral Investment Protection and Promotion Agreements (BIPPAs) ratified before the land reform program.
The land reform program, which began in the early 2000s, saw the compulsory acquisition of farms from approximately 5,000 white farmers as part of an effort to address colonial-era land imbalances. This program, which drew criticism from Western nations, led to various economic sanctions against Zimbabwe.
Under Zimbabwe’s Constitution, compensation is due to both “indigenous” Zimbabweans and white farmers whose land was protected by BIPPAs. The payment of compensation to these former landowners is a crucial element of Zimbabwe’s debt clearance strategy, supported by the African Development Bank (AfDB).
The government has established a Structured Dialogue Platform (SDP) to facilitate discussions with creditors and development partners on economic and governance reforms. This platform is integral to the Arrears Clearance and Debt Resolution process.
Minister Ncube reported progress under the SDP, highlighting the transfer of all Reserve Bank of Zimbabwe liabilities to the Treasury and ongoing negotiations for a Staff Monitored Programme (SMP) with the International Monetary Fund (IMF), expected to conclude by year-end.
To support vulnerable groups during the SMP implementation, the government is seeking a ‘wet’ SMP, focusing on priority areas such as social protection, education, health, agriculture, food security, and climate change.