Online Reporter
Chronicle Writer
TREASURY has announced the release of US$3, 1 million for the initial group of 378 farms, part of a larger cohort of 740 owners whose compensation has been approved by the Land Compensation Committee. This disbursement marks the Government’s continued commitment to recompense Former Farm Owners (FFOs) under the Global Compensation Deed (GCD) signed back in 2020.
This move to compensate FFOs represents another noteworthy stride in the nation’s Arrears Clearance and Debt Resolution Process. It follows the Government’s allocation of US$10 million in the 2025 National Budget, specifically for these GCD compensations, with payments now being made to eligible individual farmers.
Earlier in the year, the Government finalised the distribution of an initial US$20 million towards the compensation of investors protected by Bilateral Investment Protection and Promotion Agreements (Bippas), whose agricultural holdings were affected by the Land Reform Programme of 2000.
These two landmark developments are crucial steps as Zimbabwe works to clear its outstanding debts, restore a sustainable debt position and unlock fresh, favourable external financing to enable the achievement of its development objectives.
“In this regard, the Government disbursed US$3.1 million for the first batch of 378 processed farms. This amount represents one per cent of the total compensation claim value of US$311 million.
“Last week, the Government also issued Treasury bonds related to the first batch of farmers to their custodian bank.
In line with the GCD agreement, the FFOs receive one per cent of their claim in cash, with the balance being paid through US dollar-denominated Treasury bonds with a two per cent coupon and maturities ranging from two to 10 years. These bonds have the following features: liquid asset status, prescribed asset status, tax exemption, and are tradable and transferable,” said Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, on Wednesday.
The Government has reaffirmed its commitment to continue with the payments while implementing reforms that are key to clearing the country’s arrears and resolving the debt burden.
“We are very serious about this. By settling our arrears, we can tap into long-term capital, which is essential for infrastructure development and other significant investments. This is not just crucial for the Zimbabwean government; it also impacts our private sector, which faces restrictions from creditors due to these arrears. Lifting these caps will facilitate access to foreign capital, making it easier to obtain financing to support our industries and create meaningful jobs for our citizens,” said Prof Ncube.
Chairperson of the Compensation Steering Committee and former president of the Commercial Farmers Union, Mr Andrew Pascoe, has confirmed receipt of payments, describing the development as another momentous event.
“On Monday, March 24, 2025, the first US dollar cash payments due under this plan were paid to the signed-up former farm owners. On July 29, 2020, at State House, when I signed on behalf of the FFOs, I highlighted the enormity of the achievement that we, as Zimbabweans, had been able to put aside our differences and, in an atmosphere of mutual respect and trust, negotiated an agreement that laid the foundation for the payment of compensation for improvements on farms, which had been acquired by the Government of Zimbabwe under the Fast Track Land Reform Programme.”
Mr Pascoe paid tribute to President Mnangagwa and his Government for standing by their commitment to compensate for acquired farms in line with the Constitution of Zimbabwe.
“For this, we are extremely grateful, and we are confident that the ongoing upholding of the commitments made will attract and strengthen the local, regional and international goodwill that will be vital for the success of the current Structured Dialogue Platform (SDP) on Arrears Clearance and Debt Resolution Process.”
Commenting on the FFOs compensation, Deputy Chief Secretary to the President and Cabinet, Mr Willard Manungo, who is also the co-chair of the Sector Working Group (SWG) on Land Tenure Reforms, Compensation of FFOs and the Resolution of Bippas, said the move was yet another demonstration of the Government’s commitment to the country’s reform agenda.
“These positive developments present Zimbabwe with a strong opportunity to successfully negotiate its arrears clearance and outstanding debt obligations. It is also a boost towards the country’s re-engagement efforts with the international community,” he said.
The compensation of FFOs is one of the three strategic reform pillars underpinning the Arrears Clearance and Debt Resolution Process. The strategic pillar is co-chaired by the Office of the President and Cabinet, Switzerland and the United Nations Development Programme (UNDP). The other two pillars are Economic Growth and Stability Reforms and Governance Reforms.
UNDP country representative, Dr Ayodele Odusola, has also welcomed the progress being made on compensation.
“These steps are vital for restoring trust, advancing reconciliation, and rebuilding Zimbabwe’s agricultural sector. We remain committed to supporting a transparent, inclusive and sustainable process that contributes to economic recovery and re-engagement,” he said.
Switzerland’s Ambassador to Zimbabwe, Stéphane Rey, said the payments were a step in the right direction and hoped more affected farmers would come forward to seek compensation based on this development.
Continues on www.chronicle.co.zw
Compensation of FFOs under the GCD is provided for by Section 295 (3) of the Constitution of Zimbabwe, which states that compensation is “only for improvements that were made on the land when it was acquired.”
Despite resource challenges, the Government continues to make significant strides and remains committed to advancing its economic development agenda.
Meanwhile, the Government has further called for support from Development Partners to underpin Zimbabwe’s efforts towards Arrears Clearance and Debt Resolution.
derick.khumalo