Zimbabwe unveils US$20m plan to compensate white farmers this year

The Zimbabwean government has announced plans to compensate former farm owners affected by the Land Reform Programme, allocating US$20 million towards reimbursement of foreign farmers.

Finance Minister Mthuli Ncube on Wednesday confirmed that US$20 million will be disbursed to foreign farmers and US$3.5 million to local farmers by the end of 2024.

This payment is part of a multi-year compensation plan, addressing claims protected under the Bilateral Investment Promotion and Protection Agreement (BIPPA) and the Global Compensation Deed.

“We have been going through a verification process. That process is now producing credible results. We know who they are, who they are not. This is a multi programme.

“So, next year, the following year, we will be able to continue with the compensation process until all the liabilities are cleared,” Ncube said.

The government aims to settle US$176 million owed to foreign farmers, covering 94 claims, primarily from the Netherlands, Switzerland, Germany, Denmark, and several eastern European countries.

For local farmers, the US$3.5 million payment represents only one percent of the total US$351.6 million in claims received under the Global Compensation Deed. The remaining balance will be paid through the issuance of treasury bonds.

The compensation process has been ongoing since 2020, when President Emmerson Mnangagwa’s government signed a deal with white farmers.

Local farmers will only receive payment for infrastructure, such as buildings, wells, and irrigation equipment, not for the land itself. In contrast, foreign farmers covered under BIPPA will receive compensation for both land and infrastructure.

The land reform program, launched in 2000 by former President Robert Mugabe, resulted in the seizure of land from approximately 4,000 white farmers, often through violent means.

The program aimed to address colonial-era land inequities but led to significant economic disruption and food shortages worsened by the imposition of targeted sanctions by the western countries.

In a related development, the government recently announced plans to allow beneficiaries of the land reform program to sell their land, but only to “Indigenous Zimbabweans,” sparking controversy.

Critics argued that the move is meant to benefit multiple farm owners who grabbed large tracts of land.