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

Finance Minister Mthuli Ncube has admitted that Zimbabwe’s mounting debt crisis is severely undermining efforts to stabilise the economy.
Speaking in Harare this week, Ncube said that the country’s ballooning debt, stagnant revenues, and shrinking fiscal space were the major issues.
Zimbabwe’s public debt has surged to over US$21 billion, nearly 90% of the country’s GDP. Major creditors include the World Bank, the African Development Bank, the Paris Club, and the non-Paris Club. Said Ncube (via <a href="https://businesstimes.co.zw/debt-crisis-chokes-mthuli/">Business Times</a>):
<blockquote>
If there is anything that keeps me awake at night as the Finance Minister it’s this debt crisis. The issue of debt is critical and albatross that we need to remove from our necks so that the economy can move forward. This issue occupies me for the most of my time [and it’s taking a toll on me].
What is more worrisome to me is that Zimbabwe’s average growth of around 6% is way lower than the interest rates growth.
This means that our debt will continue to be increasing. That’s why we have to restructure our debt to ensure that the debt does not accumulate.
</blockquote>
The country’s growing debt burden limits the government’s ability to fund public services and stifles economic growth prospects.
To tackle the crisis, Ncube revealed plans to divest from underperforming State-Owned Enterprises (SOEs) to raise funds for debt repayment.
The Zimbabwean government has also engaged with international financiers through a high-level dialogue platform led by African Development Bank (AfDB) President Dr Akinwumi Adesina and former Mozambican President Joaquim Chissano.
However, these initiatives have faced challenges due to delays in implementing essential governance reforms, which are crucial for the arrears clearance and debt resolution agenda.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe owes a lot of money to different lenders, which is making it hard for the economy to get better. The Finance Minister is worried about the growing debt because it's almost as much as the country's GDP. This debt is stopping the government from giving people important services and making the economy grow. The Minister wants to sell some government businesses to get money to pay back the debt. They are also talking to other countries and organizations to help solve the debt problem. But, they are facing some challenges in fixing the debt because they need to make some important changes first.

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