Cracks emerge in US$3,5bn former white farmers deal

Zimbabwe's farm compensation process has come under fresh scrutiny, with the head of a legally mandated steering committee alleging that government is pursuing "divide and rule" tactics in its engagement with dispossessed white farmers.

Ian McKersie, chairperson of the Compensation Steering Committee (CSC), said authorities appear to be prioritising farmers willing to accept the government's proposed settlement framework while sidelining those who reject it.

According to McKersie, the government is engaging primarily with farmers prepared to accept the Farm Compensation Agreement (FCA), a structure that proposes staggered payments over 10 years, largely through Treasury Bills.

"The GoZ is only actively engaging with those farmers prepared to accept their FCA offer," he said, adding that those rejecting the terms are not being meaningfully engaged.

Zimbabwe committed in 2020 under the Global Compensation Deed (GCD) to compensate former commercial farmers for improvements made on acquired land during the Fast-Track Land Reform Programme (FTLRP). The agreement was valued at US$3.5 billion.

That settlement followed a 2019 valuation of US$5.186 billion, with farmers agreeing to a discount of about US$1.6 billion to facilitate payment by 2025.

McKersie said no payments have yet been made under the GCD.

"Under the constitution, only improvements will be paid for by the GoZ," he said, noting that land compensation is expected to be addressed separately under international arrangements.

He added that the government is now offering a further discounted FCA settlement, also structured over 10 years and predominantly financed through Treasury Bills, with about US$800 million reportedly committed so far.

Concerns have been raised about the reliance on long-term government paper, given Zimbabwe's history of debt distress and arrears, with the country's total public debt estimated at more than US$23 billion.

An additional US$200 million has reportedly been allocated under bilateral investment protection agreements (BIPPAs) for a separate category of affected farmers.

Government, through the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, maintains that payments are being made in line with agreed frameworks. Former permanent secretary Obert Jiri previously said authorities were honouring commitments.

The compensation process remains central to Zimbabwe's efforts to re-engage with international creditors and restore investor confidence, with property rights reform consistently cited as a key benchmark.

The FTLRP, launched in 2000, redistributed land to black Zimbabweans but also led to a steep decline in agricultural productivity and long-standing disputes over compensation.

Under the 2013 Constitution, government is required to compensate for improvements on acquired land, while responsibility for compensating for the land itself was assigned to Britain — a provision that remains unresolved.

Tensions continue to surface among affected stakeholders. In a February 2026 letter to President Emmerson Mnangagwa, Ben Freeth criticised the emerging compensation framework, warning it risks undermining equality and investor confidence.

"Secure, transferrable and bankable property rights are the key to a productive and prosperous future," Freeth said, arguing that unequal treatment among categories of farmers could damage perceptions of fairness and the rule of law.

The compensation debate remains one of Zimbabwe's most politically and economically sensitive reform issues, with implications for debt restructuring, international engagement and long-term agricultural recovery.