Staff Reporter
Government has commenced compensation payments to investors protected under Bilateral Investment Protection and Promotion Agreements (BIPPAs) whose properties were affected during theLand Reform Programme in 2000. This follows the allocation of US$20 million in the 2025 National Budget for this purpose.
Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, confirmed the development, stating, “I am pleased to announce that the compensation process has begun. This marks a historic milestone and a critical step in Zimbabwe’s Arrears Clearance and Debt Resolution Process.”
The Land Reform Programme, implemented under former President Robert Mugabe, sought to redistribute land from white commercial farmers to black Zimbabweans to correct historical imbalances. However, the process led to economic instability and strained relations with foreign investors from hostile countries. The current compensation initiative is aimed at mending these relations and attracting investment.
Professor Ncube emphasised Government’s commitment, saying, “The compensation demonstrates the Government’s goodwill and commitment to building trust in the process and improving investor confidence in the country.”
The compensation framework distinguishes between local and foreign farmers. Local white farmers are set to receive $351.6 million, primarily through treasury bonds, while 94 foreign farmers from countries,including Denmark, Germany and the Netherlands will be compensated with $196.6 million, with an initial $20 million being paid in cash.
Economic analysts have welcomed the move, viewing it as a step toward economic stability and re-engagement with the international community.
“This is an encouraging step towards a comprehensive and fair settlement for affected investors. It signals Zimbabwe’s willingness to respect international agreements and create a more predictable investment climate,” said Persistent Gwanyanya an economist.
Meanwhile, the compensation effort aligns with broader economic reforms, including the new land policy introduced by President Mnangagwa. The policy allows land beneficiaries to sell and use it as collateral for loans, aiming to empower black farmers and boost agricultural productivity. However, land transfers remain restricted to “indigenous Zimbabweans” and require Government approval.
As Zimbabwe advances its Arrears Clearance and Debt Resolution Process, the successful execution of this compensation program is expected to improve relations with international creditors and enhance investor confidence, positioning the country for economic recovery.
