Minister defends US$40 million land compensation to Phillip Chiyangwa’s company

HARARE – The Government of Zimbabwe has defended its decision to compensate Pinnacle Holdings, a company owned by Zanu-PF businessman Phillip Chiyangwa, with over 180 hectares of prime land across Harare, worth more than US$40 million, citing a value-for-value basis for the transaction.

The matter came under scrutiny in Parliament on Wednesday following questions raised by Mbizo MP Corban Madzivanyika, who queried why Pinnacle Holdings was awarded high-value urban land in affluent suburbs such as Borrowdale, Highlands, Bluffhill and Mt Pleasant, instead of land of similar size and location as the 514 hectares in Stoneridge South that were taken over by the state.

Responding in Parliament, the Minister of Local Government and Public Works, Daniel Garwe, clarified that the Stoneridge land, which was originally under Pinnacle Holdings, was taken over to accommodate housing cooperatives and avoid evicting thousands of informal settlers who had already constructed homes.

“We used Government valuers to assess the Stoneridge land and its value was pegged at US$40.465 million. We then compensated Pinnacle Holdings with urban land of equal value, not size,” Garwe said.

He added that the alternative would have involved displacing thousands of families.

He explained that the move was meant to correct flaws in the cooperative housing model, which had led to disputes between residents and private developers.

Government intervention, he argued, was in the public interest.

Critics had, however, argued that the land awarded as compensation, some of which includes properties in Borrowdale, Highlands, Strathaven, Arcadia, and the Central Business District, holds significantly higher market value than the acquired Stoneridge land, raising fears of an unjustified windfall to Chiyangwa.

An internal City of Harare report dated May 12, 2025, reveals that 181.26 acres are earmarked for transfer to Pinnacle Holdings following a compensation agreement signed on July 26, 2024.

According to the document, the Ministry of Local Government requested the City to approve the handover of 12 land parcels across Harare, with an undertaking that the Government would identify and transfer equivalent land back to the municipality in the future.

Among the critics of the deal is investigative journalist Hopewell Chin’ono, who publicly questioned why council land meant for housing development was being transferred to a private company without public consultation or competitive bidding.

“Why is council land being looted this way?” Chin’ono asked, directing his concern to Harare Mayor Jacob Mafume, who is yet to respond.

Opposition members have also raised concern over the lack of independent valuation in the transaction, with Madzivanyika pointing out discrepancies between government assessments and those conducted by private valuers.

Minister Garwe, however, dismissed those concerns, asserting that only Government valuations were considered in the final decision.

“Where the Government is involved, we use Government valuers. If there is an independent valuation that was done under the authority of whoever did that, the government is not in sight of that valuation.

“It would be of great interest if we could have that independent valuation but it is only of great interest. This matter has been concluded when we have compensated Pinnacle.

“They are already developing. We are processing title deeds for people who are settled in Stoneridge as we proceed,” Garwe noted.

Meanwhile, the proposed land transfer comes as Harare City Council faces mounting pressure over land governance.

A separate Commission of Inquiry led by retired judge Justice Maphios Cheda recently uncovered systemic corruption in land allocations, including the disappearance of public funds, irregular stand allocations, and the loss of city assets.

The Commission’s final report has since been presented to President Emmerson Mnangagwa.