The Zimbabwe government is compensating investors affected by the 2000 Land Reform Programme under BIPPA agreements, with US$20 million disbursed for initial payouts. Claims are approved for 94 farms from several countries, marking a vital step in Zimbabwe’s debt resolution process. This compensation initiative aims to restore trust and improve investor relations as part of broader economic reforms and engagements with international partners.
On February 8, 2025, the Republic of Zimbabwe confirmed its commitment to compensating investors covered under Bilateral Investment Protection and Promotion Agreements (BIPPAs). This initiative addresses investments affected by the Land Reform Programme initiated in 2000. Funds from a total allocation of US$20 million intended for compensating affected farm owners were disbursed, marking a significant milestone in Zimbabwe’s efforts to resolve its debt challenges.
The compensation process officially commenced in January 2025. Finance Minister, Professor Mthuli Ncube, emphasized the importance of this initiative in building trust and ensuring consistency with national commitments. Eligible claimants for compensation are those based in countries with established BIPPAs that were signed before the land reforms.
A total of 94 farms, representing investors from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia, are slated for compensation. Initial payouts have started, and ambassadors from the respective countries praised the government’s efforts. They deemed the compensation scheme essential for achieving comprehensive and equitable settlements for affected farmers and investors.
Compensations are based on land and improvements, aligning with Zimbabwe’s Constitution. Dr. Akinwumi Adesina of the African Development Bank noted that the compensation exemplifies the government’s dedication to restoring investor confidence and improving economic relations. Ongoing support from development partners is crucial to sustain momentum.
This compensation framework is part of the broader Arrears Clearance and Debt Resolution Process, facilitated through a Structured Dialogue Platform (SDP) established to engage with creditors and development partners. By addressing economic reforms, Zimbabwe aims to clear its debts and access new financing for development initiatives.
The resolution of BIPPA claims is coordinated through a designated Sector Working Group within the SDP, focusing specifically on land tenure issues and compensation for former farm owners. Following a recent SDP meeting, President Mnangagwa reinforced the government’s commitment to supporting the arrears resolution process in line with national development strategies.
The government plans to allocate US$125.9 million over the next four years for BIPPA compensations, in addition to another US$20 million earmarked in the 2025 National Budget. This funding exemplifies Zimbabwe’s intention to fully settle past obligations while fostering relations with the international community.
Zimbabwe’s Land Reform Programme, initiated in 2000, significantly affected agricultural investments, leading to disputes over land ownership and compensation. BIPPAs were established to protect foreign investors, allowing governments to reassure investors regarding their assets in a host country. The current efforts by the Zimbabwean government constitute a critical step toward rebuilding trust with international investors and stabilizing the national economy by resolving outstanding compensation issues.
Zimbabwe’s initiative to compensate investors under BIPPAs represents a pivotal moment in its economic recovery, addressing past injustices while bolstering investor confidence. The phased approach to compensation, coupled with ongoing reforms under the Structured Dialogue Platform, signifies a renewed commitment to transparency and partnership with the international community. Successful implementation of these compensatory measures is crucial for the country’s long-term stabilization and growth.
Original Source: www.media-outreach.com
