‘Significant milestone’ – say EU ambassadors as Zimbabwe pays $20m for seized farms

By Chief Correspondent

EUROPEAN ambassador’s accredited to Harare have commended the government for beginning payments to investors who lost farms under the land reform programme despite their farms being protected under Bilateral Investment Protection and Promotion Agreements (BIPPAs).

Finance minister Prof Mthuli Ncube confirmed last week that the government had paid out US$20 million under the compensation scheme from provisions made in the 2024 national budget.

“I am pleased to announce that the compensation process has begun,” said the Treasury chief.

“We believe that this process is crucial for building trust, honouring our commitments, and ensuring consistency with our Constitution as we address Zimbabwe’s debt challenge.”

The government said only claimants from countries with BIPPAs signed and ratified before the 2000 Land Reform Programme are eligible for the scheme, with some 94 farms approved for compensation.

Claimants that benefitted from this initial disbursement are from Denmark, Germany, the Netherlands, Switzerland and former Yugoslavia.

Meanwhile, in a joint statement, ambassadors of Germany, the Netherlands and Switzerland jointly welcomed the development.

“We commend the Government’s allocation of funds in the National Budget as of 2024 to make the compensation a reality,” reads the statement.

“Several affected investors have received initial payouts, and an emerging sense of closure exists.

“It marks a significant milestone, and we consider it a very encouraging step towards a comprehensive and fair settlement for farmers and investors in Zimbabwe, be it in terms of financial compensation or land tenure. Now, it is important for the Government to keep this positive momentum.”

After disbursement of the US$20 million allocated in the 2024 National Budget for the BIPPA-protected farms, the balance, amounting to US$125.9 million, will be paid under a multi-year payment plan, where the Government will make fiscal allocations through Annual National Budgets over the next four years, 2025 to 2028.

Compensation of affected investors is one of the key reforms under the Structured Dialogue Platform on the country’s Arrears Clearance and Debt Resolution Process.

The Government established the process in December 2022 to institutionalise engagement on economic and governance reforms to underpin the Arrears Clearance and Debt Resolution Process.

The President of the African Development Bank Group and the Champion of the Zimbabwe Arrears Clearance and Debt Resolution, Dr Akinwumi Adesina added, “The compensation demonstrates the Government’s goodwill and commitment to building trust in the process and improving investor confidence in the country.

“The progress Zimbabwe has made, the commitment and resilience it is showing, calls for support from development partners to facilitate the country’s effort in implementing on going reforms and to provide the much-needed cushion to particularly the vulnerable members of the population.”