Zimbabwe’s Finance Minister, Professor Mthuli Ncube, has revealed that the government will allocate $20 million (approximately R350 million) to begin compensating former farmers affected by the land reform programme. This initial round of compensation is set to benefit 94 farmers, marking the first phase in a multi-year initiative.
“On the matter of compensation, BIPPA (Bilateral Investment Promotion and Protection Agreement) farmers, as you know, in the budget we set aside $20 million equivalent for that compensation. That is going to begin in earnest in this last quarter of the year,”
Ncube announced during a press briefing in Harare on Thursday.
The compensation will be directed towards farmers who lost their land during the controversial land redistribution programme, initiated over two decades ago under the leadership of then-president Robert Mugabe. At the time, Mugabe justified the policy as a necessary step to rectify the historical inequalities in land ownership that persisted after Zimbabwe’s independence from British colonial rule in 1980. His government argued that vast amounts of land remained in the hands of a white minority, and the reform was intended to redress that imbalance.
Verification and Multi-Year Programme
According to Ncube, the government has been engaged in a thorough verification process to identify the rightful claimants. He stressed that the process had now produced reliable results, allowing the compensation to move forward.
“We have been going through a verification process and that process is now producing credible results. We know who they are, who they are not, so we will be able to begin the compensation process,”
he explained.
Ncube also highlighted that the compensation project is not a one-time payment but part of a broader, long-term programme. The funds set aside in Zimbabwe’s 2024 national budget are the first installment, and future payments will continue on an annual basis.
“Next year and the following year we will be able to continue with the compensation process until all the liabilities are cleared,”
Ncube confirmed.
International Claimants and Wider Compensation Plans
The compensation process covers farmers protected under the Bilateral Investment Promotion and Protection Agreement (BIPPA), which includes citizens from countries such as Denmark, Germany, the Netherlands, Switzerland, and Yugoslavia, as well as about 400 black Zimbabwean farmers.
In addition to the BIPPA claims, the Zimbabwean government is also addressing claims under the Global Compensation Deed. This agreement covers 441 claims amounting to $351.6 million (approximately R6.2 billion), a far more significant sum than the current allocation under BIPPA. Of this total, Ncube indicated that a portion amounting to $3.5 million (around R61 million) will be paid by the end of the year. This represents about one percent of the total claims under the deed.
“The same also applies to those (farmers) under the Global Compensation Deed. Also, the compensation will begin in this quarter after the verification process,”
Ncube added, reinforcing that both agreements are set to proceed concurrently.
Government Efforts to Revive Agriculture and the Economy
The compensation plan is part of the Zimbabwean government’s broader efforts to revive the country’s agricultural sector, which has been struggling since the land reform programme disrupted commercial farming. Once a thriving sector, Zimbabwe’s agriculture has suffered a decline, contributing to wider economic challenges in the country. President Emerson Mnangagwa’s administration has been working to restore Zimbabwe’s agricultural output as part of a larger strategy to stabilise and rebuild the economy.
The land reform programme, which began around 2000, was highly contentious both domestically and internationally. While it was framed as a necessary correction of historical injustices, critics argue that it was poorly executed, leading to significant damage to Zimbabwe’s farming industry. Many experienced farmers were displaced, resulting in a sharp decline in food production and exports, which heavily impacted the country’s economy.
With these new compensation efforts, the government hopes to not only repair the damage done to those affected by the reform but also boost confidence in Zimbabwe’s investment climate and agricultural sector.
Road Ahead for Farmers
Earlier this year, the Zimbabwean government had already taken steps to notify eligible farmers. Advertisements were placed in local media, encouraging those covered by BIPPA to contact the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development to begin the compensation process.
Ncube has committed to ensuring that the compensation process remains on track, with payments beginning by the end of the year and continuing annually for the next several years.
“We will be able to continue with the compensation process until all the liabilities are cleared,”
Ncube stated, reassuring affected farmers that the government is dedicated to fulfilling its commitments.
These compensation payments, though a fraction of the broader claims under the Global Compensation Deed, represent a crucial step in healing the economic wounds caused by the land reform policy. By addressing these outstanding liabilities, Zimbabwe aims to move forward, repairing its damaged agricultural base and stabilising its economy for future growth.
