Latest on government compensation of white commercial farmers
By Staff Reporter
Finance minister Mthuli Ncube says Treasury has started paying compensation to over 90 white commercial farmers whose land, protected under Bilateral Investment Protection Agreements (BIPPA), was still seized by the Zimbabwe government during the chaotic land reform programme since 2000.
The Treasury boss said in an update Tuesday that US$20 million, set aside for the purpose in his 2025 national budget presented last year, will be disbursed this year from a targeted total of US$146 million that is due to the dispossessed investors.
The balance of US$125.9 million, according to Ncube, shall be drafted in successive government national budgets over the next coming four years.
The minister said he was “pleased to announce that the compensation process has begun”, adding, “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.”
Ncube said payments towards the compensation of investors under BIPPA protection began in the second week of January 2025 adding that the disbursement marked a critical step the debt-ridden country’s arrears clearance measures, a key requirement towards ostracised Zimbabwe’s full readmission into the global monetary space.
Said the minister, “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”.
Those eligible for the compensation are claimants from countries with BIPPAs signed and ratified before the 2000 Land Reform Programme.
The countries are Denmark, Germany, the Netherlands, Switzerland and former Yugoslavia.
The move was hailed as “encouraging” by Germany, the Netherlands and Switzerland ambassadors accredited to Zimbabwe.
“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,” said the ambassadors in a joint statement.
“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,” the ambassadors said.
