Africa Moyo-Deputy National Editor
THE Netherlands has commended Zimbabwe for progress in compensating farmers protected under Bilateral Investment Promotion and Protection Agreements, with Dutch Ambassador Matthijs van Eeuwen, describing the process as critical to restoring investor confidence and strengthening economic relations.
The acknowledgement comes as Government presses ahead with efforts to resolve outstanding compensation claims arising from the 2000 Land Reform Programme, an undertaking that carries implications beyond the individual farmers concerned, touching on Zimbabwe’s investment reputation, relations with international partners and broader efforts to resolve its external debt and arrears.
In an interview, Ambassador van Eeuwen said the Netherlands appreciated the progress made so far and remained committed to supporting Zimbabwe’s debt and arrears resolution process.
“I am very grateful to the Government of Zimbabwe for the good progress so far on the compensation of BIPPA farmers, and I believe it is key to keep this momentum,” he said.
“This is critical to the farmers themselves, who lost their businesses, and to restoring investor confidence,” he said.
His remarks offer a key perspective on the significance of the compensation programme at a time when Zimbabwe is pursuing economic transformation under its Vision 2030 agenda and working to normalise relations with international creditors and development partners. The Government’s approach under President Mnangagwa recognises that resolving outstanding obligations is an important part of rebuilding confidence and creating conditions for sustained investment.
The compensation of qualifying former farm owners is one component of that wider undertaking.
Figures published in the Second Edition of the Zimbabwe Public Debt Management Office bulletin prepared by the Ministry of Finance in July 2026, show that Treasury has paid US$40 million towards BIPPA-protected farmers’ compensation from the 2024 and 2025 National Budgets.
A further US$20 million was allocated in the 2026 National Budget, while the outstanding US$70,5 million is scheduled for payment over the 2027 and 2028 fiscal years through annual budgetary allocations. The figures provide a picture of a phased process in which Government is using public resources to meet obligations to qualifying claimants while spreading the remaining payments across successive budget cycles.
Under arrangements agreed through the Land Tenure Reforms, Compensation of Former Farm Owners and Resolution of BIPPAs Sector Working Group, annual Treasury allocations are shared equally among qualifying BIPPA-protected claimants.
The programme covers former farm owners from countries that signed and ratified bilateral investment protection agreements with Zimbabwe before the 2000 Land Reform Programme.
These include Denmark, Germany, the Netherlands, Switzerland and the former Yugoslavia.
In May 2024, Government invited applications from affected farmers seeking compensation. Between 2024 and 2025, the Land Compensation Committee approved 97 farms for payment.
Four farms were subsequently removed from the list after their owners opted for restoration of title under the Government’s land title deed programme, leaving 93 farms with claims totalling US$130,5 million.
Of these, 10 farms valued at US$1,9 million, were fully compensated during the 2024 payment cycle. Another six farms, with claims amounting to US$2,3 million, received full compensation in 2025.
Seventy-seven farms have received partial payments.
The compensation programme sits within a much larger national debt challenge.
Zimbabwe’s total public and publicly guaranteed debt stood at US$21,8 billion at the end of December last year, equivalent to 37,4 percent of gross domestic product.
External debt accounted for US$11,8 billion, while domestic debt stood at US$10 billion.
The Government’s Arrears Clearance and Debt Restructuring Strategy is intended to address the country’s debt overhang and support renewed engagement with international creditors. It is anchored in the national vision of building a prosperous and empowered upper-middle-income society by 2030.
Ambassador van Eeuwen reaffirmed the Netherlands’ support for Zimbabwe’s debt and arrears resolution process, including efforts relating to Dutch farmers protected under BIPPAs.
His comments come as the Netherlands prepares to gradually scale down its embassy operations in Harare, with the mission expected to close within two years.
The ambassador said the decision close the Harare office was driven by budgetary pressures and a wider reorganisation of the Dutch diplomatic network.
“The world is changing fast and budgets are under pressure, so the Netherlands has to make difficult choices.
“We are reorganising our diplomatic network to make it as effective as possible in this new geopolitical reality, and the closure of our embassy in Harare is part of that process.
“It is not a judgement on Zimbabwe or on our relationship,” he said.
During the transition, the embassy will continue supporting existing clients and partners through consular services, economic development work and civil society initiatives in water, youth and climate action.
It will not take on new commitments but will focus on completing active partnerships.
The ambassador also expressed hope that the recently launched Netherlands Zimbabwe Business Network would continue beyond the embassy’s closure, sustained by participating companies and the value they derive from the platform.
