Online Reporter
Oliver Kazunga, [email protected]
GOVERNMENT has paid US$724 million in compensation to former commercial farm owners, fulfilling obligations under the Global Compensation Deed in a major milestone for Zimbabwe’s property rights reforms and debt resolution efforts.
The payments, made since the compensation programme began in March last year, cover 876 former commercial farm owners whose claims have been approved under the programme.
The compensation forms part of Zimbabwe’s US$3,5 billion commitment to about 3 500 former commercial farm owners for improvements made on land acquired under the Land Reform Programme.
Authorities have repeatedly stressed that compensation is being paid only for improvements made on the land, including infrastructure, irrigation systems, buildings and other developments, and not for the land itself, which remains vested in the State.
The compensation programme is regarded as one of the key reforms underpinning Zimbabwe’s arrears clearance and debt resolution strategy and is considered an important benchmark in efforts to restore access to concessional financing, grants and broader international financial support.
According to the latest update on Zimbabwe’s Arrears Clearance and Debt Resolution Process progress released by the Ministry of Finance, Economic Development and Investment Promotion, Treasury has paid US$7,2 million in one percent upfront cash payments and issued US$716,8 million in United States dollar-denominated Treasury Bonds to settle the balance due to approved beneficiaries.
The current compensation framework, agreed in December 2023 after consultations between Government and representatives of former farm owners, provides for a one percent upfront cash payment, with the remaining 99 percent settled through Treasury Bonds carrying a two percent annual coupon and maturities ranging from two to 10 years.
Former Farm Owners Compensation Steering Committee chairman Mr Andrew Pascoe said Government had honoured every payment commitment since the programme was launched despite operational challenges experienced during implementation.
“Since payments began in March 2025, Government has met all its commitments.
“Whilst there have been many challenges in ensuring that the payment processes run smoothly and align with Government protocols and meet the required timelines, I am happy to report that we have been able to work together with our counterparts in Government to overcome these challenges and put measures in place that should ensure that future payments meet the required timelines,” he was quoted as saying in the report.
Mr Pascoe said the introduction of an online application system had accelerated the processing of claims from former commercial farm owners living in Zimbabwe and abroad.
As of June 10, 2026, a total of 965 applications had been approved for compensation, while additional claims were at various stages of verification and assessment.
The Government has processed payments in phases with the first three batches, covering 876 farms, receiving their upfront cash payments and Treasury Bonds.
A fourth batch involving 89 farms, valued at about US$77 million, has already been approved and is awaiting payment, while claims under a fifth batch are still being verified.
The Government also noted that 320 former commercial farm owner claims had been fully settled before the Global Compensation Deed was signed in 2020.
The latest progress is expected to strengthen confidence in Zimbabwe’s commitment to implementing the Global Compensation Deed, while supporting broader efforts to improve the investment climate and advance the country’s arrears clearance and debt resolution agenda.
Meanwhile, the Government has also expanded compensation payments to farmers protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs), with 93 farms now receiving compensation under a programme valued at US$130,5 million.
According to the same report, 16 farms have now been fully compensated, while 77 have received partial payments.
The Netherlands accounts for the largest number of beneficiaries, with 44 farms receiving a combined US$20,1 million, followed by Switzerland with 27 farms valued at US$11,9 million.
Claimants from Germany have received US$4,8 million across 14 farms, while seven Danish farms have received US$2,8 million.
One farm linked to the former Yugoslavia has received US$400 000.
And the Government through the Ministry of Finance, Economic Development and investment Promotion said US$40 million has already been disbursed under the BIPPA programme.
A further US$20 million has been allocated in the 2026 National Budget. The outstanding US$70,5 million is expected to be settled through annual budget allocations in 2027 and 2028.
The BIPPA compensation programme covers investors from Denmark, Germany, the Netherlands, Switzerland and the former Yugoslavia whose properties were affected during the Fast-Track Land Reform Programme.
