The Zimbabwean government has started paying former white commercial farmers whose land was seized during the controversial land reform program of the early 2000s. This move aims to address a long-standing issue and is a key part of Zimbabwe’s efforts to stabilize its economy and rebuild international trust.
On Tuesday, Finance Minister Mthuli Ncube announced that 94 farms, involving 56 farmers, have been approved for compensation. The payments, totaling $145.9 million, will cover both the land and improvements made on the farms.
However, only farms protected under the Bilateral Investment Protection and Promotion Agreements (BIPPAs) qualify for compensation. These agreements were signed before the land reform program began in 2000. The initial payments come from the $20 million set aside in Zimbabwe’s 2024 national budget for this purpose. The remaining $125.9 million will be paid in stages between 2025 and 2028.
Ncube called the payments a “historic milestone” and a crucial step in Zimbabwe’s plan to clear its debts and resolve financial challenges. The government is currently negotiating with international creditors for debt relief and restructuring. Successfully implementing these reforms is vital for achieving debt sustainability and attracting new funding.
“This is critical for the country to achieve its economic development goals,” Ncube said, highlighting the importance of securing international support for Zimbabwe’s recovery.
The land reform program, launched over two decades ago, sought to redistribute land from white farmers to Black Zimbabweans to address colonial-era inequalities. However, it faced criticism for causing economic instability and a decline in agricultural productivity. The compensation initiative is now seen as an effort to address past injustices and rebuild trust with the global community.
Analysts believe this move could improve Zimbabwe’s international reputation and attract foreign investment. However, some argue that the staggered payment plan and the limited scope of compensation – only covering BIPPA-protected farms – may not fully resolve the concerns of all affected farmers.
As Zimbabwe takes this significant step, the world will be watching to see how it impacts the country’s economy and its relationships with international partners. For now, the government remains hopeful that this marks the start of a new era of economic stability and growth.