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Martin Kadzere
Over 1 300 former white former commercial farmers have signed a revised compensation agreement with the Government, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
The deal will see the farmers receiving payment for improvements made on the farms they occupied, which were acquired by the Government during the land reform programme in the early 2 000s.
The Government entered into an agreement with the white farmers in April 2021 to pay US$3,5 billion under the deal, also known as the Global Compensation Deed.
Under the original agreement, the farmers would have received half of the money within the first year, followed by four US$437,5 million annual instalments.
The agreement was signed by the Government and two unions representing former white farmers namely the Commercial Farmers Union (CFU) and the Southern African Commercial Farmers Alliance.
According to CFU, the GCD agreement had the support of 2 759 farmers out of the 2 896 who voted before it was signed, representing 95 percent of the group.
However, the Government faced some challenges in securing the anticipated funding from global partners, leading to delays in fulfilling its compensation promises.
This prompted the Government to devise a revised compensation plan, which was subsequently rejected by some farmers in a referendum held in June 2023.
Critics argue that the referendum failed to accurately represent the views of all affected farmers, as many, believed to be residing abroad, were unable to participate.
In the 2025 Budget Strategy paper, Minister Ncube said over 1 300 former commercial farmers had expressed interest in signing the revised compensation agreement.
“The administrative payment process has commenced, with Government already undertaking verification,” he said. “In addition, Government invited applications through an advertisement in the national newspapers to initiate payment of compensation of farms protected by BIPPAs, which were ratified before the Land Reform Programme.
Zimbabwe began to compulsorily acquire farms owned by about 5 000 white farmers at the turn of the millennium in an exercise it said was meant to redress colonial imbalances.
The exercise, which attracted criticism from the West and their allies triggered the imposition of various forms of economic sanctions against Harare.
Under the country’s Constitution, two types of farmers are supposed to be compensated for both land and improvements on farms and these included (1) a group of “indigenous” Zimbabweans, or black farmers and (2) white farmers who had land protected by Bilateral Investment Protection and Promotion Agreements (BIPPAs).
The payment of compensation to the former farm owners is a key component of Zimbabwe’s debt clearance strategy, which is being spearheaded by the African Development Bank (AfDB).
To implement the Engagement and Re-Engagement agenda, the Government established a Structured Dialogue Platform (SDP) with all creditors and development partners, to institutionalise structured dialogue on economic and governance reforms to underpin the Arrears Clearance and Debt Resolution process.
Since the establishment of the SDP, Minister Ncube said there has been commendable progress, promoted by a transparent and inclusive consultative process.
The dialogue involves engagements under the three sector working groups focusing on economic growth and stability reforms, governance reforms and land tenure reforms (99-year lease), compensation of former farm owners and the resolution of farms affected by the land reform programme and protected by the BIPPAs.
Under the economic stability and growth reforms working group, all liabilities of the RBZ was transferred to Treasury and these are now being serviced from the national budget.
In addition, negotiations are currently underway for a Staff Monitored Programme with the International Monetary Fund, and is expected to be concluded before year end.
To cushion the vulnerable groups during the SMP implementation period, Government is seeking a ‘wet’ SMP, for, which funding is required for the priority areas in social protection, education, health, agriculture or food security and climate change.
Online Reporter