The Zimbabwean government has announced plans to compensate 94 foreign farmers whose lands were seized during the country’s controversial land reforms in the early 2000s. The affected farmers, who come from countries including Switzerland, Denmark, Germany, the Netherlands and the former Yugoslavia, were protected under Bilateral Investment Protection and Promotion Agreements (BIPPA) signed between Zimbabwe and their home countries.
Finance Minister Mthuli Ncube said the government would allocate $20 million in the 2024 budget and an additional $20 million in the 2025 budget to resolve these claims. The aim is to pay off the $146 million debt owed to farmers protected by BIPPA by 2028.
Debt Concerns, Discontent Among Local Farmers
The compensation plan is part of Zimbabwe’s broader efforts to rebuild its financial standing after seeking debt relief and restructuring in 2022. The country’s total external debt is $21 billion, according to the African Development Bank.
But some economists argue that the burden of compensation should fall on resettled farmers rather than the government. Independent economist Eddie Mahembe questioned why taxpayers should cover the cost when most beneficiaries are actively farming and earning income.
At the same time, displaced white Zimbabwean farmers have expressed frustration that the compensation plan only covers foreign nationals. Under a 2020 agreement, the Zimbabwean government promised to pay $3.5 billion to local white farmers displaced by land grabs. But former Commercial Farmers Union president Trevor Gifford criticized the government for failing to meet its commitments and leaving many former landowners destitute.
Uncertainty over Land Ownership and Investment Climate
The government’s move to issue title deeds to resettled farmers has further raised concerns about land ownership disputes. Gifford warned that issuing new title deeds on top of existing outstanding claims would deter foreign investors and create legal uncertainty.
Graham Rae, a former Zimbabwean farmer now living in Zambia, echoed these concerns, saying he would not surrender the title to his old farm until he received compensation. He likened the situation to buying stolen goods and argued that the lack of legal clarity was undermining Zimbabwe’s investment climate.
Despite the controversy, Zimbabwean authorities maintain that issuing title deeds to resettled farmers would enable them to access credit and expand agricultural production. However, ongoing disputes over compensation and land rights remain a major challenge to the country’s economic recovery.