Zimbabwe outlines payment framework for white ex-farmers

Government says it remains fully committed to compensating former white commercial farmers and is on track to meet all obligations within the agreed timelines, with most beneficiaries already receiving payments. This was confirmed by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, who outlined the progress and mechanisms guiding the compensation programme.

In an interview this week, Prof Ncube said compensation was being handled under two frameworks: farmers protected under the Bilateral Investment Promotion and Protection Agreements (BIPPA) and those covered by the US$3.5 billion Global Compensation Deed.

"In conformity with the Constitution, the Government agreed to compensate farmers and signed an agreement with them, to compensate them for the land and improvements that they lost," he said.

Prof Ncube explained that BIPPA farmers - who invested after independence and lost land and improvements - were entitled to full cash compensation. The Government paid US$20 million towards this last year and will match that amount again this year, he said, adding that the four-year schedule for the programme was progressing smoothly.

"For the first category, the BIPPA farmers, the programme is going well. Last year we paid about US$20 million, and again this year we will pay a similar amount. By the end, we are going to make sure that is done."

He said Government had also begun honouring commitments to the broader group of farmers under the US$3.5 billion compensation arrangement. These farmers received 10-year treasury bills, which Government is servicing through cash coupon payments.

"Regarding the farmers on the US$3.5 billion compensation deed, those payments have started. We are servicing the coupon on the 10-year bonds that we issued. If we find a mechanism to pay faster, we will endeavour to do so. That programme is also underway, and on both fronts we are making a lot of progress," he said.

Prof Ncube emphasised the difference between the two categories, noting that BIPPA farmers receive direct cash payments, while other farmers are compensated through treasury bills that ultimately mature into full settlements.

He also highlighted the strong recovery of Zimbabwe's agricultural sector, saying the resurgence in wheat, maize and horticulture production signalled stability and renewed confidence.

"It's wonderful that the agricultural sector is performing so well. This is to say that Zimbabwe agriculture is back," he said.

Zimbabwe's fast-track land reform programme, launched to correct colonial-era land ownership imbalances, saw land redistributed from a white minority to the black majority. Government has since intensified efforts to provide title deeds to landholders to strengthen tenure security and unlock economic value.