dyton mupawaenda
Ivan Zhakata
Herald Correspondent
The Government has begun compensating foreign investors whose farms were acquired during the Land Reform Programme, thereby marking a major step in the country’s economic reforms.
The payments, drawn from a US$20 million allocation in the 2024 National Budget, target 94 farms protected under Bilateral Investment Protection and Promotion Agreements (BIPPAs).
Government has committed an additional US$20 million in the 2025 National Budget, with full payments expected by 2028.
Eligible investors are from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia.
Finance Minister Professor Mthuli Ncube said the move is a milestone in Zimbabwe’s economic recovery efforts.
“I am pleased to announce that the compensation process has begun. This is crucial for building trust, honouring commitments, and addressing Zimbabwe’s debt challenges.”
Ambassadors from Germany, the Netherlands, and Switzerland welcomed the development, calling it a historic achievement.
They urged Zimbabwe to maintain momentum towards “a comprehensive and fair settlement for all affected investors.”
The compensation is part of Zimbabwe’s Arrears Clearance and Debt Resolution Process, launched in 2022.
Dr Akinwumi Adesina, president of the African Development Bank, commended the initiative.
“This demonstrates Zimbabwe’s goodwill and commitment to investor confidence. The progress calls for support from development partners.”
President Mnangagwa, speaking at a November 2024 high-level meeting, reaffirmed Government’s dedication to reforms and said they are essential for economic growth.
As Zimbabwe advances the implementation of its National Development Strategy 1 (2021-2025), the compensation plan is a crucial step towards unlocking external financing and fostering economic stability.
Online Reporter