HARARE- Zimbabwe has commenced compensation payments to farmers and investors affected by the country’s Land Reform Program in 2000, as part of a US$20 million facility allocated in the 2024 National Budget. Finance and Investment Promotion Minister Mthuli Ncube confirmed the payments, targeting farmers protected under Bilateral Investment Protection and Promotion Agreement (BIPPA). The affected claimants include investors from Denmark, Germany, the Netherlands, Switzerland, and the former Yugoslavia.

“I am pleased to announce that the compensation process has begun. This process is crucial for building trust, honoring commitments, and ensuring consistency with our Constitution as we address Zimbabwe’s debt challenge,” said Ncube. “Payments towards the compensation of investors under BIPPA protection began in the second week of January 2025. The payments are being made directly to the claimants’ bank accounts of choice.”

Diplomatic envoys from Germany, the Netherlands, and Switzerland welcomed the move, calling it a significant step toward closure for affected parties.

“The framework established by the Government of Zimbabwe, leading to the full compensation of affected BIPPA farmers, is indeed a historic achievement. We commend the government’s allocation of funds in the National Budget for 2024 to make this compensation a reality,” the envoys said in a joint statement. “Several affected investors have received initial payouts, marking a significant milestone. It is an encouraging step toward a comprehensive and fair settlement for farmers and investors in Zimbabwe.”

The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, who has been a key figure in Zimbabwe’s Arrears Clearance and Debt Resolution Process, hailed the development as a major milestone.

“The compensation demonstrates the government’s goodwill and commitment to building trust in the process and improving the country’s standing. Zimbabwe’s progress, commitment, and resilience call for support from development partners to facilitate ongoing reforms and provide a cushion for the most vulnerable members of the population,” Adesina said.

In 2022, Zimbabwe established a Structured Dialogue Platform with creditors and development partners to institutionalize engagement on economic and governance reforms. This initiative underpins the country’s Arrears Clearance and Debt Resolution Process, with BIPPA compensation being a key component.

The Government has said that the compensation exercise is a pivotal step in restoring investor confidence, fostering international goodwill, and addressing long-standing financial and governance challenges.