Zimbabwe Begins US$20 Million Compensation to BIPPA-Protected Farmers

The Zimbabwean government has initiated compensation payments to former landowners under the US$20 million facility allocated in the 2024 National Budget, targeting investors protected by Bilateral Investment Protection and Promotion Agreements (BIPPAs) affected by the 2000 Land Reform Program. Finance Minister Mthuli Ncube announced that payments began in January 2025, with funds being directly deposited into the claimants' chosen bank accounts. A total of 94 farms have been approved for compensation, amounting to approximately US$145.9 million, with initial payouts already received by several claimants from Denmark, Germany, the Netherlands, Switzerland, and former Yugoslavia. The announcement was met with positive responses from diplomatic envoys, who described it as a significant milestone towards closure for affected parties. Ncube emphasized that the compensation effort is crucial for building trust and addressing Zimbabwe's debt challenges, marking a historic step in the country's Arrears Clearance and Debt Resolution Process. The government plans to distribute the remaining US$125.9 million over the next four years to ensure comprehensive compensation for all eligible claimants.