HARARE, Sept. 20 – The Zimbabwean government will begin disbursing compensation funds to white former commercial farmers next month, marking a significant step in the country’s arrears clearance plan, NewsDay has learned.
The announcement was made by Swiss Ambassador to Zimbabwe, Zambia, and Malawi, Stéphane Rey, during Switzerland’s National Day celebrations. Rey commended the Zimbabwean government’s efforts to compensate Swiss and other European farmers whose lands were expropriated during the country’s controversial land reform program in the early 2000s.
“I want to express my appreciation for the bold steps taken, particularly the effective compensation of farmers,” Rey said. “This historic development is not just about financial settlement; it’s about reconciliation and moving forward.”
According to Rey, initial disbursements will begin next month, with 27 Swiss farms affected. Of these, 17 have already been validated and approved for compensation, while the remaining 10 are expected to be reviewed by the end of the week.
The compensation is a key element of Zimbabwe’s broader strategy to clear arrears and resolve its debt crisis. The plan requires Zimbabwe to pay US$3.5 billion to former farm owners and compensate those whose farms were seized despite being protected under the Bilateral Investment Promotion and Protection Agreement (BIPPA). Additionally, the country must undertake economic and governance reforms as part of the arrears clearance and debt resolution strategy.
Last year, the African Development Bank (AfDB) announced financial instruments designed to expedite the compensation process, following initial rejections from farmers who turned down a proposed 10-year payment plan via Treasury bills. The compensation package is intended for local white farmers whose land was taken during the land reform program launched in 2000, a policy that remains one of Zimbabwe’s most divisive.
In 2020, Zimbabwe agreed to compensate displaced local farmers, while foreign white farmers were given the option to apply for the return of their seized land.
Meanwhile, Rey also addressed Switzerland’s humanitarian response to Zimbabwe’s El Niño-induced drought. He announced a partnership with Africa Risk Capacity to provide a US$16 million drought insurance payout and revealed that the Swiss government had contributed US$2.7 million to the Zimbabwe Humanitarian Appeal.
Rey also unveiled a series of cultural and economic initiatives aimed at strengthening ties between Switzerland and Zimbabwe. One of the key projects is the launch of the Swiss Support to Arts Development in Zimbabwe (SSADZA), a US$2 million arts and culture program that will support local artists over the next four years.
“This initiative will partner with local organisations across Zimbabwe to give artists a platform for their unique voices,” Rey said. “The SSADZA programme is Switzerland’s commitment to localisation, empowering local institutions and communities.”
Rey emphasized the importance of private sector collaboration to sustain Zimbabwe’s growing art scene and urged local businesses to engage with the revitalised Swiss-Zimbabwe Business Chamber, a platform designed to foster dialogue and explore investment opportunities between Swiss and Zimbabwean enterprises.
Michael Chigiji, the acting secretary for Zimbabwe’s Ministry of Foreign Affairs and International Trade, reiterated the country’s commitment to being a safe and attractive destination for Swiss investments.
Source: News Day