shloboe boe
Harare Bureau
GOVERNMENT has started compensating investors whose farms were protected under the Bilateral Investment Promotion and Protection Agreement (Bippas) before the 2000 Land Reform Programme, in a development expected to give impetus to the country’s Arrears Clearance and Debt Resolution Process.
Following the approval of 94 claims valued at about US$145 million, the Government began payments in the second week of January 2025, Finance, Economic Development and Investment Promotion Minister Prof Mthuli Ncube said in a statement. The funds were provided for in the 2025 National Budget.
“I am pleased to announce that the compensation process has begun,” said Minister Ncube. “We believe that this process is critical for building trust, honouring our commitments and ensuring consistency with our Constitution as we address Zimbabwe’s debt challenge,” he added.
Investor compensation is a key reform area under Zimbabwe’s Structured Dialogue Platform for Arrears Clearance and Debt Resolution.
Established in December 2022, the platform facilitates engagement with creditors and development partners, focusing on reforms across economic growth and stability, governance, and land tenure, including farm owner compensation and BIPPAs.
African Development Bank (AfDB) President Dr Akinwumi Adesina was appointed by President Mnangagwa to champion the dialogue with former Mozambican President Joaquim Chissano serving as facilitator.
The BIPPA farmers are being compensated for land and improvements on the farms with only farmers from countries that had signed and ratified BIPPAs by the time of the Land Reform Programme was introduced in 2000 eligible for payment.
The majority of the claims, 46, came from the Netherlands, followed by Switzerland with 27, Germany with 14, Denmark with 6, and Yugoslavia with one.
In the 2024 National Budget, the Treasury allocated US$20 million for compensation.
The remaining US$125,9 million will be disbursed through a multi-year plan from 2025 to 2028, with annual budget allocations. An additional US$20 million has been allocated in the 2025 National Budget.
Minister Ncube said the compensation “marks a historic milestone” towards the country’s debt resolution.
Successful implementation of the Structured Dialogue Platform reforms is crucial for Zimbabwe to clear arrears, achieve debt sustainability, and unlock new concessional external financing.
This is critical for achieving the country’s economic development objectives under the National Development Strategy 1 (NDS 1), which ends this year, and its successor, NDS 2, which runs for five years to 2030.
“The compensation demonstrates the Government’s goodwill and commitment to building trust in the process and improving investor confidence in the country,” said Dr Adesina.
“The progress Zimbabwe has made, the commitment and resilience it is showing calls for support from the development partners to facilitate the country’s effort in implementing the ongoing reforms and to provide the much-needed cushion to particularly the vulnerable members of the population.”
In a statement, the German, Swiss, and Netherlands embassies in Harare applauded the Government for making the compensation a reality, noting that several affected individuals have received initial payouts and that a sense of closure is emerging.
“It marks a significant milestone, and we consider it a very encouraging step towards a comprehensive and fair statement for farmers and investors in Zimbabwe,” the embassies said.
Zimbabwe’s total public debt is estimated at US$21 billion, including external and domestic obligations.
At a recent high-level structured dialogue meeting in Harare, the Working Group on Land Tenure acknowledged significant progress in resolving land tenure issues and farm compensation for improvements on the acquired land.
Notably, in October of last year, a decision was made to provide security of tenure to all beneficiaries of the Land Reform Programme, aiming to boost agricultural productivity and investments.
The Government has already launched a new initiative to streamline the issuance of title deeds, prioritising A2 farmers under the initial phase.
The establishment of a dedicated one-stop centre aims to expedite the process of acquisition of title deeds by the farmers in a move expected to strengthen land ownership security and boost agricultural productivity. While the initial focus is on A2 farmers, the Government is working on modalities to survey and subsequently process title deeds for smaller-scale farmers.
The exercise, being spearheaded by the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development in conjunction with the Ministry of Justice, Legal and Parliamentary Affairs, will grant full ownership rights to holders of valid offer letters, A2 permits, 99-year leases, A1 settlement permits, A1 temporary permits, and ALSA leases, according to an official flier seen by this publication.
Initially, all processing will be centralised at the Harare one-stop centre located at Makombe Building.
Online Reporter