US$10m set aside for farmers' compensation

MORE than 700 white former commercial farmers whose land was repossessed during Zimbabwe's fast-track land reform programme are set to receive compensation this year, as Government steps up efforts to resolve long-standing legacy issues linked to the historic redistribution of land.

Under the Global Compensation Deed (GCD) — a landmark agreement between Government and representatives of former farm owners — Zimbabwe committed to pay US$3.5 billion to about 3 500 former commercial farmers as compensation for improvements made on acquired land.

Treasury has allocated US$10 million in the 2026 National Budget for progressive payouts, with about 740 former farmers expected to benefit during the year.

The compensation programme forms a central pillar of Zimbabwe's arrears clearance and debt resolution strategy, which authorities see as critical to restoring access to concessional funding, grants and debt relief from international financial institutions.

Government officials say resolving compensation claims will bolster investor confidence, demonstrate commitment to property rights and accelerate re-engagement with institutions such as the World Bank and the International Monetary Fund (IMF).

Treasury has adopted a phased payment model to balance fiscal sustainability with the obligation to honour compensation commitments.

Under the GCD, compensation is strictly limited to improvements made on the land — including infrastructure, buildings, irrigation systems and equipment — and does not cover the land itself, which was acquired by the State.

Speaking to journalists during a question-and-answer session on the Land Tenure Title Deeds Programme in Harare on Tuesday, Lands, Agriculture, Fisheries, Water and Rural Development Permanent Secretary Professor Obert Jiri said the compensation process was ongoing and consistently supported through annual budget allocations.

"The compensation of former white commercial farmers is an ongoing process. Within the national fiscal budget, we always put provision for 10 percent every year to pay these farmers, and that has been happening religiously over the last few years," Prof Jiri said.

He said Government had received positive feedback from both local and international stakeholders for maintaining consistency in meeting its obligations.

"We have received reports where most of the countries involved have really applauded the payments by the Government. So, the process continues," he said.

Treasury has confirmed that the compensation programme is embedded in the Roadmap for Arrears Clearance and Debt Resolution, which authorities regard as essential to unlocking concessional financing, stimulating investment and supporting economic growth.

As of September 2025, compensation owed to former farm owners stood at US$3.191 billion, accounting for a significant portion of domestic debt.

Government says honouring these obligations is key to normalising Zimbabwe's debt profile and strengthening re-engagement with the international community.

In addition to compensation, Prof Jiri said Government was implementing land tenure reforms aimed at improving agricultural productivity and enhancing investment security.

He revealed that unoccupied or abandoned farms, including those previously protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs), are now eligible for title deeds under the ongoing land tenure reform programme.

"Those BIPPA farms which are not occupied are now eligible for title deeds. Before, we would give land to people on derelict or abandoned farms, but with this title deeds programme, if those farms are unoccupied, they can now get title deeds so that they continue with their operations," Prof Jiri said.

He also said white former commercial farmers who remained on their land after the land reform programme are now eligible for title deeds — a move intended to ensure continuity of production, safeguard investments and stabilise agricultural output.

Government believes the compensation programme, alongside the issuance of title deeds, will strengthen confidence in Zimbabwe's land administration system while consolidating the gains of land reform.

Compensation is being paid in line with Section 72 of the Constitution, which provides that where land is acquired for public purposes, "no compensation is payable in respect of its acquisition, except for improvements effected on it before its acquisition."