Zimbabwe has begun compensating farm owners under BIPPAs as part of its Arrears Clearance and Debt Resolution Process. Payments started in January 2025, focusing on claimants from countries with agreements before the 2000 Land Reform Programme. These actions aim to build trust and improve investor confidence, following budget allocations to support compensation efforts.
The Zimbabwean government has initiated compensation payments to farm owners under the Bilateral Investment Promotion and Protection Agreements (BIPPAs), marking a pivotal advancement in its Arrears Clearance and Debt Resolution Process. Finance Minister Professor Mthuli Ncube announced the commencement of the compensation, emphasizing its importance for building trust and adherence to constitutional commitments aimed at addressing national debt challenges.
Compensation payments started in January 2025 and are directed to the claimants’ preferred bank accounts. Eligibility is restricted to claimants from nations with BIPPAs enacted prior to the 2000 Land Reform Programme, with 94 farms currently approved for compensation. The eligible claimants include nationals from Denmark, Germany, the Netherlands, Switzerland, and the former Yugoslavia.
Ambassadors from Germany, the Netherlands, and Switzerland welcomed the government’s initiative, highlighting its historic significance. They commended the allocation of funds within the 2024 National Budget, which has enabled initial payouts and fostered a sense of closure among affected investors. They encouraged the government to maintain positive momentum in this compensation process.
Farmers under BIPPA protection will be compensated for both land and farm improvements as stipulated in Section 295 (2) of the Zimbabwean Constitution. Dr. Akinwumi Adesina, President of the African Development Bank Group, noted the compensation reflects the government’s commitment to fostering trust and improving investor confidence in Zimbabwe’s economy.
The compensation initiatives form a crucial aspect of the Structured Dialogue Platform for Zimbabwe’s Arrears Clearance and Debt Resolution Process. This platform, established in December 2022, involves systematic engagements with creditors and partners to address economic reforms. The resolution of BIPPA farms happens through one of the three sector working groups, focusing on land tenure reforms and compensation for former owners.
In a High-Level meeting held in November 2024, President Mnangagwa reiterated the government’s ownership of the process and its commitment to implement necessary reforms aligned with Zimbabwe’s National Development Strategy 1. The compensation efforts also play a crucial role in Zimbabwe’s efforts to re-engage with the international community.
Following the allocation of $20 million from the 2024 National Budget for BIPPA compensation, the government plans to disburse an additional $125.9 million over the following four years through annual budgeting. An additional $20 million is earmarked in the 2025 National Budget for this compensation effort.
The Zimbabwean government’s commitment to compensate investors under BIPPAs arises from historical disputes regarding land ownership resulting from the Land Reform Programme that commenced in 2000. The BIPPAs serve as legal agreements between Zimbabwe and specific countries, guaranteeing certain protections for investors. This initiative is a critical part of broader efforts to restore investor confidence, address outstanding debts, and fulfill constitutional obligations related to property rights.
The Zimbabwean government’s actions to compensate BIPPA-protected farmers represent a significant step in resolving historical disputes and rebuilding trust with the investment community. By systematically addressing compensations and reinforcing legal frameworks, Zimbabwe aims to enhance its economic stability, attract new investments, and fulfill its international commitments. Continued engagement with global partners is crucial for sustaining this momentum and achieving overall economic reform.
Original Source: www.dagangnews.com
