Zimbabwe has marked a critical milestone in its reform journey by commencing compensation payments to Former Farm Owners (FFOs) under the landmark Global Compensation Deed (GCD) signed in 2020. This move represents not only the government’s resolve to uphold constitutional commitments but also a major signal of its readiness to re-engage with the international community, attract foreign investment, and clear longstanding debt arrears.
This week, the Government disbursed US$3.1 million for the first batch of 378 farms—part of the broader compensation plan for 740 farms already approved by the Land Compensation Committee. While this initial payment represents just one percent of the US$311 million total claim value for the processed farms, it marks the formal activation of a long-anticipated process. Complementing the cash disbursement, the Government has issued US dollar-denominated Treasury bonds with a two percent coupon rate and maturities ranging from two to ten years. These bonds are structured with attractive features including liquidity, prescribed asset status, tax exemption, and tradability—demonstrating a strategic approach to honouring obligations while preserving fiscal discipline.
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Book NowIn total, US$10 million was set aside for this initiative in the 2025 National Budget, with payments currently being made to interested and registered individual farmers. Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, emphasised the broader economic implications of this move. He noted that honouring these commitments is not only a matter of justice but a vital component of Zimbabwe’s strategy to unlock access to long-term capital and infrastructure investment. Clearing arrears, he said, will ease constraints on both the public and private sectors and support job creation and economic transformation.
The impact of the compensation extends beyond economics into diplomacy and trust-building. Deputy Chief Secretary in the Office of the President and Cabinet, Mr. Willard Manungo, who co-chairs the Sector Working Group on Land Tenure Reforms, Compensation of FFOs, and the Resolution of BIPPAs, hailed the payments as a tangible reflection of the Government’s commitment to reforms. He highlighted their importance in supporting Zimbabwe’s Structured Dialogue Platform (SDP) and efforts to normalise relations with creditors and international partners.
This development follows the February 2025 disbursement of US$20 million to BIPPA-protected investors, indicating a steady and structured approach to redressing past land acquisition grievances. The GCD, signed in 2020, was described by the Chairperson of the Compensation Steering Committee and former Commercial Farmers Union president Mr. Andrew Pascoe as a symbol of reconciliation and shared national purpose. He expressed deep appreciation to President Mnangagwa and the Government for fulfilling their pledge to compensate for improvements on acquired farms—a constitutional commitment long awaited by many.
With this compensation process now underway, Zimbabwe is demonstrating its readiness to turn a page in its economic history. The government’s follow-through on such a politically and financially sensitive matter is being watched closely by development partners and financial institutions alike. It sends a clear signal that Zimbabwe is laying the groundwork for an inclusive, rules-based economy in which both historical justice and future opportunity are being addressed in tandem.
As the Arrears Clearance and Debt Resolution Process continues, this compensation programme under the GCD stands out as a keystone effort—anchoring trust, fostering investment confidence, and bridging the gap between the past and a more stable, prosperous economic future.
