The Government of Zimbabwe has begun compensating investors affected by the Land Reform Programme under Bilateral Investment Protection and Promotion Agreements (BIPPAs), marking a crucial step in the country’s Arrears Clearance and Debt Resolution Process.
This follows the disbursement of funds from the US$20 million allocated in the 2024 National Budget for compensating BIPPA-protected farm owners. Payments began in January 2025, benefiting claimants from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia, whose agreements were ratified before 2000. A total of 94 farms have been approved for compensation.
Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, emphasized the significance of this move. “The compensation process is crucial for building trust, honouring our commitments, and ensuring consistency with our Constitution as we address Zimbabwe’s debt challenge,” he said.
The initiative aligns with Section 295 (2) of the Constitution, which guarantees compensation for investors whose land was acquired under state agreements. The payments mark a key reform under Zimbabwe’s Structured Dialogue Platform on Arrears Clearance and Debt Resolution.
Zimbabwe’s commitment to settling outstanding obligations has been praised by international stakeholders. The Harare-based ambassadors of Germany, the Netherlands, and Switzerland jointly welcomed the move, stating, “This is a historic achievement and a significant step towards a fair settlement for affected farmers and investors. It is important for the Government to maintain this positive momentum.”
Dr. Akinwumi Adesina, President of the African Development Bank Group and Champion of Zimbabwe’s Arrears Clearance Process, also commended the initiative, calling it “a demonstration of goodwill and a step towards improving investor confidence.”
As part of a multi-year payment plan, Zimbabwe has allocated an additional US$20 million in the 2025 National Budget, with the remaining US$125.9 million set to be disbursed progressively until 2028.
The Government’s approach to compensating investors is a vital component of its broader economic reforms under the National Development Strategy 1 (2021-2025) and its transition towards National Development Strategy 2 (2026-2030). By addressing historical investment disputes, Zimbabwe aims to restore confidence, attract new investments, and unlock international financial support.
