Zimbabwe has started paying compensation for farms that were taken over by the government during the Land Reform Programme but were protected by Bilateral Investment Protection and Promotion Agreements (BIPPAs).
The payments began in the second week of January according to a statement issued by the Ministry of Finance.
A total of 94 farms were approved for compensation totalling US$145.9 million. The majority of the farms were owned by 33 Dutch farmers who had 46 farms valued at US$88.2 million. The other farmers were from Denmark (5 farmers with 6 farms), Germany (7 farmers with 14 farms) Switzerland ( 10 farmers with 27 farms), and the former Yugoslavia (one farmer with a single farm).
Zimbabwe budgeted US$20 million for compensation in 2024 and another $20 million in this year’s budget. It intends to make further payments over the next four years to 2028.
Finance Minister Mthuli Ncube said he was pleased to announce that the compensation process had 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,” he said.
The compensation is part of the key reforms under the Structured Dialogue Platform on the country’s Arrears Clearance and Debt Resolution Process.
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