Historic Payout: Zimbabwe’s Millions to Ex-White Farmers

Zimbabwe Compensates Former White Farmers in Historic Deal

​The Zimbabwean government has initiated compensation payments to former white commercial farmers for improvements made on land acquired during the early 2000s land reform program. An initial disbursement of US$3.1 million has been made to 378 farmers, representing 1% of the total US$311 million claim value for this group. The remaining compensation will be provided through US dollar-denominated Treasury bonds with a 2% annual interest rate, maturing between 2 and 10 years.

This action is part of the Global Compensation Deed (GCD) agreed upon in 2020, aiming to address longstanding disputes from the land redistribution efforts that began in 2000. The Zimbabwean Constitution stipulates compensation for improvements made on acquired land, not for the land itself. ​

Finance Minister Mthuli Ncube emphasized that these payments are crucial for Zimbabwe’s arrears clearance and debt resolution process, potentially unlocking long-term capital essential for infrastructure development and significant investments.

In addition to compensating local farmers, Zimbabwe has allocated funds to compensate foreign white farmers protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs). An initial $20 million is being disbursed to 94 foreign farmers from countries including Denmark, Germany, the Netherlands, Switzerland, and the former Yugoslavia. The remaining $125.9 million will be paid through fiscal allocations staggered from 2025 to 2028.

This compensation initiative is part of broader efforts by President Emmerson Mnangagwa’s administration to rebuild international relations and stabilize the economy following the controversial land reforms initiated by former President Robert Mugabe.

For a detailed discussion on Zimbabwe’s land compensation deal and its implications, you may find the following video informative:​