Zimbabwe begins compensation of BIPPA protected ex-white farmers

Finance and Investment Promotion Minister Mthuli Ncube has announced the commencement of compensation payments to farmers under a US$20 million facility allocated in the 2024 National Budget. The payments are targeted at farmers and investors whose properties were affected by Zimbabwe's Land Reform Program in 2000 and who were protected under Bilateral Investment Protection and Promotion Agreements (BIPPAs).

The affected claimants include investors from Denmark, Germany, the Netherlands, Switzerland, and the former Yugoslavia.

"I am pleased to announce that the compensation process has begun. This process is crucial for building trust, honoring commitments, and ensuring consistency with our Constitution as we address Zimbabwe's debt challenge," said Ncube. "Payments towards the compensation of investors under BIPPA protection began in the second week of January 2025. The payments are being made directly to the claimants' bank accounts of choice."

Diplomatic envoys from Germany, the Netherlands, and Switzerland welcomed the announcement, describing it as a significant step toward closure for the affected parties.

"The framework established by the Government of Zimbabwe, leading to the full compensation of affected BIPPA farmers, is indeed a historic achievement. We commend the government's allocation of funds in the National Budget for 2024 to make this compensation a reality," the envoys said in a joint statement. "Several affected investors have received initial payouts, and this marks a significant milestone. It is a very encouraging step toward a comprehensive and fair settlement for farmers and investors in Zimbabwe."

The President of the African Development Bank (AfDB) and champion of Zimbabwe's Arrears Clearance and Debt Resolution Process, Dr. Akinwumi Adesina, hailed the development as a major milestone.

"The compensation demonstrates the government's goodwill and commitment to building trust in the process and improving the country's standing. Zimbabwe's progress, commitment, and resilience call for support from development partners to facilitate ongoing reforms and provide a cushion for the most vulnerable members of the population," said Adesina.

In 2022, Zimbabwe established a Structured Dialogue Platform with its creditors and development partners to institutionalize engagement on economic and governance reforms. This platform underpins the country's Arrears Clearance and Debt Resolution Process, with compensation for BIPPA farmers being a critical component of these efforts.

The compensation exercise is viewed as a pivotal step in restoring investor confidence, fostering international goodwill, and addressing long-standing financial and governance challenges.