Judith Phiri, Business Reporter
The Government has said it is honouring its commitment to compensate investors protected by Bilateral Investment Protection and Promotion Agreements (BIPPAs), whose investments were affected by the Land Reform Programme in 2000.
This follows the disbursement of funds from the US$20 million allocated for the compensation of BIPPA-protected farms in the 2024 National Budget.
The payments to farm owners under BIPPA-protection marks a historic milestone and a critical step in Zimbabwe’s Arrears Clearance and Debt Resolution Process.
In a statement providing an update on the payments, Finance, Economic Development, and Investment Promotion, Minister Professor Mthuli Ncube said the balance, amounting to US$125.9 million, will be paid under a multi-year payment plan.
“I am pleased to announce that the compensation process has begun. 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,” he said.
“After the disbursement of the US$20 million allocated in the 2024 National Budget for the BIPPA-protected farms, the balance, amounting to US$125.9 million, will be paid under a multi-year payment plan, where the Government will make fiscal allocations through Annual National Budgets over the next four years, 2025 to 2028.”
He said in this regard, the Government has provided a further US$20 million in the 2025 National Budget for this purpose.
Prof Ncube said the payments towards the compensation of investors under BIPPA protection began in the second week of January 2025, while payments are being made to the claimants’ Bank accounts of choice.
“Only claimants from countries with BIPPAs signed and ratified before the 2000 Land Reform Programme are eligible for compensation. 94 farms were approved for compensation. The claimants are from Denmark, Germany, the Netherlands, Switzerland and former Yugoslavia,” added the Minister.
The Harare-based ambassadors of Germany, the Netherlands and Switzerland jointly welcomed the announcement: “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.”
“We commend the Government’s allocation of funds in the National Budget as of 2024 to make the compensation a reality. Several affected investors have received initial payouts, and an emerging sense of closure exists.”
The Harare-based ambassadors said this marked a significant milestone, and they 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.
The compensation of BIPPA-protected farms is in line with Section 295 (2) of the Constitution of Zimbabwe, which provides that; “any person whose agricultural land was acquired by the State before the effective date, and whose property rights at the time were guaranteed or protected by an agreement concluded by the Government of Zimbabwe with the Government of another country, is entitled to compensation from the State for the land and any improvements in accordance with that agreement.”
The President of the African Development Bank Group and the Champion of the Zimbabwe Arrears Clearance and Debt Resolution, Dr Akinwumi Adesina said: “The compensation demonstrates the Government’s goodwill and commitment to building trust in the process and improving investor confidence in the country.”
He said the progress Zimbabwe has made, the commitment and resilience it is showing, calls for support from development partners to facilitate the country’s effort in implementing on going reforms and to provide the much-needed cushion to particularly the vulnerable members of the population.
