Zimbabwe has started paying compensation to foreign investors whose farms were affected by the 2000 Land Reform Programme, marking a significant step in the nation's debt resolution efforts. The government released US$20 million from its 2024 National Budget to begin settling claims protected under Bilateral Investment Protection and Promotion Agreements.
Finance Minister Mthuli Ncube announced the payments started flowing into claimants' accounts by mid-January 2025. The initiative targets 94 approved farms owned by investors from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia, with total compensation valued at US$145.9 million.
European ambassadors based in Harare praised the development as historic. They noted several affected investors had received initial payments, creating momentum toward comprehensive settlements for farmers and investors in Zimbabwe. The compensation aligns with Zimbabwe's constitutional requirements under Section 295, which mandates payment for acquired agricultural land protected by international agreements.
African Development Bank Group President Akinwumi Adesina, who champions Zimbabwe's debt resolution process, commended the government's actions. He emphasized how the compensation demonstrates Zimbabwe's commitment to rebuilding investor confidence and called for increased support from development partners.
The initiative operates through the Structured Dialogue Platform, established in December 2022, to address economic and governance reforms. This framework brings together creditors and development partners under various working groups, including one focused on land tenure reforms co-chaired by Switzerland and the United Nations Development Programme.
President Emmerson Mnangagwa reinforced his administration's dedication to debt resolution during a high-level meeting in Harare last November. The government plans to distribute the remaining US$125.9 million over four years, with another US$20 million already earmarked in the 2025 budget. These reforms stand central to Zimbabwe's goals of achieving debt sustainability and accessing concessional financing as it moves toward implementing its next national development strategy.
The compensation program represents a crucial element in Zimbabwe's broader economic reform agenda. By honoring these international commitments, the country aims to strengthen its relationships with global partners and create conditions for sustained economic growth.
Finance Minister Mthuli Ncube announced the payments started flowing into claimants' accounts by mid-January 2025. The initiative targets 94 approved farms owned by investors from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia, with total compensation valued at US$145.9 million.
European ambassadors based in Harare praised the development as historic. They noted several affected investors had received initial payments, creating momentum toward comprehensive settlements for farmers and investors in Zimbabwe. The compensation aligns with Zimbabwe's constitutional requirements under Section 295, which mandates payment for acquired agricultural land protected by international agreements.
African Development Bank Group President Akinwumi Adesina, who champions Zimbabwe's debt resolution process, commended the government's actions. He emphasized how the compensation demonstrates Zimbabwe's commitment to rebuilding investor confidence and called for increased support from development partners.
The initiative operates through the Structured Dialogue Platform, established in December 2022, to address economic and governance reforms. This framework brings together creditors and development partners under various working groups, including one focused on land tenure reforms co-chaired by Switzerland and the United Nations Development Programme.
President Emmerson Mnangagwa reinforced his administration's dedication to debt resolution during a high-level meeting in Harare last November. The government plans to distribute the remaining US$125.9 million over four years, with another US$20 million already earmarked in the 2025 budget. These reforms stand central to Zimbabwe's goals of achieving debt sustainability and accessing concessional financing as it moves toward implementing its next national development strategy.
The compensation program represents a crucial element in Zimbabwe's broader economic reform agenda. By honoring these international commitments, the country aims to strengthen its relationships with global partners and create conditions for sustained economic growth.
