HARARE – The Zimbabwean government has made its first compensation payment of US$3.1 million to former white commercial farmers whose land was acquired under the country’s land reform program, marking the commencement of fulfilling commitments made under the 2020 Global Compensation Deed (GCD).
According to the Ministry of Finance, the US$3.1 million has been disbursed to the first batch of 378 farms out of the 740 farms approved for compensation to date. The total approved compensation value for these initial 378 farms stands at US$311 million.
The 2020 agreement stipulates that Zimbabwe will only compensate former farm owners for “improvements” made on the land, and not for the land itself.
In line with the GCD, the initial payment represents 1% of the total claim value in cash. The remaining 99% is being issued in US dollar-denominated Treasury bonds with a 2% annual coupon rate and maturities ranging from 2 to 10 years.
These bonds have been designated as liquid assets, prescribed assets, and are tax-exempt, tradable, and transferable. The government has allocated US$10 million in the 2025 National Budget for these compensation payments.
Finance Minister Mthuli Ncube expressed hope that this move will convince foreign creditors to clear Zimbabwe’s arrears and unlock long-term funding from international financial institutions.
“The payments will continue. We are very serious about this. By settling our arrears, we can tap into the long-term capital, which is essential for infrastructure development and other significant investments.
“This is not just crucial for the Zimbabwean Government; it also impacts our private sector, which faces restrictions from creditors due to these arrears.
“Lifting these caps will facilitate access to foreign capital, making it easier to obtain financing to support our industries and create meaningful jobs for our citizens,” he stated.
Separately, the government has also been compensating farmers whose land was protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs).
In these instances, Zimbabwean law requires compensation for both the land and any improvements. The government concluded the disbursement of an initial US$20 million towards BIPPA-protected investors in February 2025.
Andrew Pascoe, Chairperson of the Compensation Steering Committee and past president of the Commercial Farmers Union, confirmed the receipt of the initial payments, describing it as “another momentous event.”
“Monday 24 March 2025 saw the first US Dollar Cash payments due under this plan being paid to the signed up Former Farm Owners,” Pascoe stated.
“On 29 July 2020, at State House when I signed the GCD on behalf of FFOs, I highlighted the enormity of the achievement that it was.
“After almost 20 years, we, as Zimbabweans, had been able to put aside our differences and, in an atmosphere of mutual respect and trust, negotiated an agreement that laid the foundation for the payment of compensation for improvements on farms which had been acquired by the Government of Zimbabwe under the Fast Track Land Reform Programme.
“I would like, as a representative of these farmers, to sincerely thank His Excellency, President Dr. E.D. Mnangagwa and his Government for standing by the commitment made by His Excellency in 2018 to pay compensation for acquired farms in line with the Constitution of Zimbabwe.
“For this, we are extremely grateful, and we are confident that the ongoing upholding of the commitments that have been made will attract and strengthen the local, regional and international goodwill that will be vital for the success of the current Structured Dialogue Platform (SDP) on Arrears Clearance and Debt Resolution Process.”
The compensation of former farm owners under the GCD falls under the Sector Working Group (SWG) on Land Tenure Reforms, Compensation of FFOs, and the Resolution of BIPPAs, which is co-chaired by the Office of the President and Cabinet, Switzerland, and the United Nations Development Programme (UNDP).
Section 295 (3) of the Constitution of Zimbabwe provides for compensation “only for improvements that were made on the land when it was acquired.”
Discover more from Nehanda Radio
Subscribe to get the latest posts sent to your email.
