Zimbabwe has disbursed its first payment of US$3.1 million to former white commercial farmers, marking a significant step in implementing the 2020 compensation agreement. The move follows years of negotiations aimed at resolving long-standing disputes from the country’s land reform programme.
The agreement, signed in 2020, stipulates that Zimbabwe will not pay for the land itself—seized under the controversial reform—but will only compensate for infrastructural improvements made on the farms. This compensation formula was agreed upon as a middle ground to balance historical grievances and economic recovery efforts.
According to the Ministry of Finance, just 1% of the compensation is being paid out in cash, with the bulk—99%—issued through USD-denominated Treasury bonds. These instruments come with a modest 2% annual interest rate and have staggered maturities ranging from 2 to 10 years.
So far, 740 farms have been approved for compensation. The current US$3.1 million payout targets the first group of 378 farms, which collectively hold an approved compensation value of US$311 million.
In a separate process, Zimbabwe is also compensating farmers whose land was protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs), where full payment for both land and improvements is legally required. Finance Minister Mthuli Ncube says the move is part of efforts to re-engage with international lenders and clear longstanding arrears, paving the way for fresh funding from institutions like the World Bank and AfDB.
