Harare, Zimbabwe – The Government of Zimbabwe has begun fulfilling its commitment to compensate investors protected under Bilateral Investment Protection and Promotion Agreements (BIPPAs), whose investments were impacted by the Land Reform Programme initiated in 2000.
This follows the disbursement of funds from the US$20 million allocated in the 2024 National Budget for the compensation of BIPPA-protected farms. The payments mark a historic milestone in Zimbabwe’s Arrears Clearance and Debt Resolution Process.
Finance, Economic Development, and Investment Promotion Minister, Honourable Professor Mthuli Ncube, provided an update on the compensation process, stating, “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.”
The compensation payments, which commenced in the second week of January 2025, are being directly deposited into the bank accounts of eligible claimants. Only investors from countries with BIPPAs signed and ratified before the 2000 Land Reform Programme qualify for compensation. A total of 94 farms have been approved for compensation, with claimants from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia. The total value of compensation amounts to US$145.9 million.
The Harare-based ambassadors of Germany, the Netherlands, and Switzerland jointly welcomed the announcement, describing it as a “historic achievement.” They commended the Zimbabwean government for allocating funds in the 2024 National Budget to make the compensation a reality.
“Several affected investors have received initial payouts, and an emerging sense of closure exists. This marks a significant milestone and is a very encouraging step towards a comprehensive and fair settlement for farmers and investors in Zimbabwe,” the ambassadors said.
The compensation aligns with Section 295 (2) of the Constitution of Zimbabwe, which guarantees compensation for agricultural land acquired by the State before the effective date, provided the property rights were protected under an agreement with another country.
Dr. Akinwumi Adesina, President of the African Development Bank Group and Champion of the Zimbabwe Arrears Clearance and Debt Resolution praised the government’s efforts, stating, “The compensation demonstrates the Government’s goodwill and commitment to building trust in the process and improving investor confidence in the country. The progress Zimbabwe has made calls for support from development partners to facilitate ongoing reforms.”
The compensation process is part of the Structured Dialogue Platform on Zimbabwe’s Arrears Clearance and Debt Resolution Process, established in December 2022. This platform engages creditors and development partners to address economic and governance reforms. The resolution of BIPPA-protected farms falls under the Land Tenure Reforms, Compensation for Former Farm Owners, and Resolution of BIPPAs Sector Working Group, 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 on November 25, 2024, President Emmerson Mnangagwa reiterated the government’s commitment to the Arrears Clearance and Debt Resolution Process and the implementation of reforms under the National Development Strategy 1 (2021-2025).
Following the disbursement of the initial US20 million,theremainingUS125.9 million will be paid over four years (2025–2028), with an additional US$20 million allocated in the 2025 National Budget. The successful implementation of these reforms is critical for Zimbabwe to achieve debt sustainability, unlock concessional financing, and transition to the National Development Strategy 2 (2026-2030).
Table 1: Total Approved BIPPA Farms for Compensation
| Country | Number of Farms | Farmers | Value (US$ millions) |
|---|---|---|---|
| Denmark | 6 | 5 | 13.4 |
| Germany | 14 | 7 | 14.0 |
| Netherlands | 46 | 33 | 88.2 |
| Switzerland | 27 | 10 | 27.0 |
| Former Yugoslavia | 1 | 1 | 3.3 |
| Total | 94 | 56 | 145.9 |
Source: APO Group
