The Zimbabwean government has started compensating former landowners whose farms were taken during the Fast-track Land Reform Programme in the early 2000s. These landowners are protected by Bilateral Investment Protection and Promotion Agreements (BIPPAs).
Finance Minister Mthuli Ncube said that funds have already been distributed from a US$20 million allocation in the 2024 National Budget to compensate these farmers.
Ncube described the payments as a historic step forward and an important part of Zimbabwe’s Arrears Clearance and Debt Resolution Process. He said:
<blockquote>
I am pleased to announce that the compensation process has begun. We believe that this process crucial for building trust, honouring our commitments, and ensuring consistency with our Constitution as we address Zimbabwe’s debt challenge.
According to the Ministry of Finance, 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.
</blockquote>
The Zimbabwean Treasury has announced that only claimants from countries with BIPPAs signed and ratified before the 2000 Land Reform Programme are eligible for compensation.
In total, 94 farms have been approved for compensation, with claimants hailing from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia.
The approved farms include:
<ul data-end="662" data-start="419">
<li data-end="463" data-start="419">Denmark: 6 farms valued at US$13.4 million</li>
<li data-end="509" data-start="464">Germany: 14 farms valued at US$41.0 million</li>
<li data-end="559" data-start="510">Netherlands: 46 farms valued at US$88.2 million</li>
<li data-end="609" data-start="560">Switzerland: 27 farms valued at US$27.0 million</li>
<li data-end="662" data-start="610">Former Yugoslavia: 1 farm valued at US$3.3 million</li>
</ul>
This brings the total to 95 farms, valued at US$145.9 million.
As for the farmers to be compensated, there are:
<ul data-end="901" data-start="778">
<li data-end="798" data-start="778">Denmark: 5 farmers</li>
<li data-end="819" data-start="799">Germany: 7 farmers</li>
<li data-end="845" data-start="820">Netherlands: 33 farmers</li>
<li data-end="871" data-start="846">Switzerland: 10 farmers</li>
<li data-end="901" data-start="872">Former Yugoslavia: 1 farmer</li>
</ul>
This totals 56 farmers set to receive compensation.
The announcement was warmly welcomed by the ambassadors of Germany, the Netherlands, and Switzerland, based in Harare, who jointly expressed their support for this historic move. They said:
<blockquote>
The framework established by the Government of Zimbabwe leading to the full compensation of affected BIPPA farmers protected by Bilateral Investment Promotion and Protection Agreements, is indeed a historic achievement.
We commend the Government’s allocation of funds in the National Budget as of 2024 to make the compensation a reality.
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. Now, it is important for the Government to keep this positive momentum.
</blockquote>
The President of the African Development Bank Group and the Champion of the Zimbabwe Arrears Clearance and Debt Resolution, Akinwumi Adesina said:
<blockquote>
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, the commitment and resilience it is showing, calls for support from development partners to facilitate the country’s effort in implementing on going reforms and to provide the much-needed cushion to particularly the vulnerable members of the population.
The compensation of these investors is one of the key reforms under the Structured Dialogue Platform on the country’s Arrears Clearance and Debt Resolution Process.
</blockquote>
In December 2022, the Government of Zimbabwe launched a Structured Dialogue Platform to engage with its creditors and development partners on economic and governance reforms. This initiative aims to support the Arrears Clearance and Debt Resolution Process.
The Ministry of Finance said that after the disbursement of the US$20 million allocated in the 2024 National Budget for BIPPA-protected farms, the remaining US$125.9 million will be paid through a multi-year payment plan.
This plan will see fiscal allocations made in the Annual National Budgets from 2025 to 2028.

Pindula News

Zimbabwe is paying back white farmers whose land was taken in the past. The government gave $20 million to start the payments. Only farmers from certain countries are getting compensated. So far, 94 farms worth $145.9 million are approved for payments. Ambassadors from Germany, Netherlands, and Switzerland are happy about this. The government plans to pay the rest of the money over a few years. This is part of Zimbabwe's plan to clear its debts and improve trust with investors. It's a big step for the country to make things right with the farmers.

Zimbabwe Makes First Payments to BIPPA-Protected White Farmers

The government plans to return ownership of land to former farmers whose farms were protected by the Bilateral Investment Protection and Promotion Agreements (BIPPAs) but seized during the fast-track land redistribution exercise at the turn of the Millenium.
Out of the 153 farms which were protected under the BIPPAs, about 116 were forcibly taken by the government during the land reform exercise.
Speaking to Business Times recently, Foreign Affairs and International Trade deputy minister David Musabayana said indigenous Zimbabweans will also get their land back. He said:
<blockquote>
It’s very clear if you go to the Constitution, section 72 and you read it with Chapter 16.
We will certainly return land under the BIPPAs and that which was owned by indigenous people who have title deeds.
What the government has done so far is to regularise that and align the Constitution by saying whoever was dispossessed of their land during the land reform programme but with title deeds is going to be given their land back or given alternative land. That land is given back to its original holders.
If the land under BIPPAs was not occupied, they can be given back the occupation and there is an option for compensation.
</blockquote>
The return of farms that were protected by BIPPAs is expected to mend relations between Zimbabwe and western countries after the former disregarded existing agreements.
More: <a href="https://businesstimes.co.zw/zim-returns-seized-land/">Business Times</a>

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