Joseph Isangura
Zimbabwe has officially started compensating foreign landowners whose commercial farms were taken during the country’s land reform program two decades ago.
Despite facing a heavy debt burden of $21 billion, the government is pushing forward with its commitment to pay over $3 billion to white Zimbabweans who lost their farms during the agrarian reforms.
Finance Minister Mthuli Ncube confirmed that the first payments have already been made, marking an important step in resolving a long-standing issue. “I am pleased to announce that the compensation has begun,” he said. “This process is essential for rebuilding trust, fulfilling our commitments, and ensuring we comply with our Constitution, even as we work through our economic challenges.”
According to Ncube, $21 million of the $146 million owed to foreign farm owners under Bilateral Investment Protection Agreements (BIPPAs) will be paid this year, with the rest scheduled to be settled over the next four years. Payments officially began in January 2025, with funds being transferred directly into the claimants’ bank accounts.
The decision to compensate affected landowners stems from a 2019 commitment made by President Emmerson Mnangagwa’s administration. At the time, the government pledged $3.5 billion in payments to local white farmers, while foreign landowners were given the option to either receive compensation or reclaim their expropriated farms.
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Zimbabwe’s land reform program, which was originally intended to redistribute land from white commercial farmers to Black Zimbabweans, led to economic disruptions, including a sharp drop in agricultural production and food shortages. Over the years, the issue of compensation has remained a major concern, with many displaced farmers and international investors calling for the government to make amends.
The government hopes that honoring its compensation promises will help rebuild investor confidence, stabilize the agricultural sector, and improve Zimbabwe’s global standing. However, economic challenges remain, with inflation, a weak currency, and outstanding debts posing significant obstacles.
