US$40 Million Paid To Foreign Farmers As Zimbabwe Accelerates BIPPA Compensation Drive

By Staff Reporter
Government Compensates 93 BIPPA Farms As Zimbabwe Moves To Clear US$130.5 Million Land Claims
Zimbabwe has paid out US$40 million to 93 farms protected under Bilateral Investment Protection and Promotion Agreements (BIPPAs) as the Government continues implementing its land compensation programme.

The payments are part of a wider US$130.5 million initiative targeting eligible former farm owners from five countries whose properties were affected during the 2000 Fast-Track Land Reform Programme.

According to the latest update from the Structured Dialogue Platform’s Arrears Clearance and Debt Resolution Process, 16 farms have now received full compensation, while 77 others have received partial payments.

The Netherlands has received the largest share, with 44 farms benefiting from US$20.1 million in compensation. Six of those farms have been fully paid, while 38 received partial payments.

Switzerland follows with 27 farms receiving US$11.9 million, including four fully compensated properties and 23 partially paid farms.

Germany’s claimants have received US$4.8 million across 14 farms, while Denmark’s seven farms have received US$2.8 million in partial payments. A farm linked to the former Yugoslavia received US$400 000.

Government Targets Remaining Compensation
The compensation process started in May 2024 when Government opened applications from BIPPA-protected farmers affected by the land reform programme.

Initially, 97 farms were approved as eligible for compensation, but four properties were later removed after owners chose restoration of title instead.

The remaining 93 farms submitted claims worth US$130.5 million.

Government has already allocated US$40 million towards the programme, with another US$20 million set aside in the 2026 National Budget.

Authorities have committed to clearing the outstanding US$70.5 million through annual allocations in the 2027 and 2028 budgets.

Zimbabwe Seeks To Restore Investor Confidence
Deputy Chief Secretary in the Office of the President and Cabinet Dr Willard Manungo said the compensation programme demonstrated Zimbabwe’s commitment to respecting international agreements.

“The consistent fulfilment of our farmer compensation obligations serves as a clear testament to the world that Zimbabwe is a reliable partner committed to honouring international agreements,” Dr Manungo said.

He added that the progress would help rebuild Zimbabwe’s credibility and support efforts to reconnect with global financial systems.

“This momentum creates the necessary credibility for our full reintegration into the global financial architecture, unlocking new windows for investment and restoring our standing within the international community,” he said.

UNDP Welcomes Land Reform Progress
United Nations Development Programme (UNDP) Resident Representative Dr Ayodele Odusola praised the progress made through dialogue between Government, farmers and other stakeholders.

“UNDP has seen Zimbabwe’s land dialogue shift from entrenched positions to constructive engagement among Government, farmers and stakeholders,” he said.

Dr Odusola said land reform remained important for agricultural development, food security and attracting long-term financing.

“Land reform remains central to agricultural transformation, food security and unlocking long-term financing for Zimbabwe’s development,” he said.

Farmers Describe Payments As Historic
Some beneficiaries described the compensation process as a major milestone after years of uncertainty.

Danish farmer Lisa Nislev said receiving payments was “unbelievable”, adding that the money had brought her mother relief and closure.

Former Switzerland Ambassador to Zimbabwe Stéphanie Rey also described the programme as a significant achievement.

“The results are formidable. What we have achieved collectively, and what the Government of Zimbabwe has delivered, is nothing short of historic,” he said.

Wider Compensation Programme Continues
Beyond BIPPA farms, Government is also compensating former commercial farmers through the Global Compensation Deed (GCD), a US$3.5 billion agreement signed in 2020.

The arrangement covers compensation for improvements made on farms acquired during the land reform programme.

As of June 10, 965 applications had been approved under the GCD, with beneficiaries receiving upfront payments and Treasury Bonds under the agreed framework.

Compensation Steering Committee chairperson Andrew Pascoe said Government had honoured its commitments since payments began.

“Since payments began in March 2025, Government has met all its commitments,” Pascoe said.

He acknowledged challenges in the payment process but said cooperation between stakeholders had helped resolve issues and keep the programme moving.