HARARE – The government says it has begun paying compensation in respect of 94 seized farms that were under Bilateral Investment Protection Agreements (BIPPAS) when it launched the country’s controversial land reform programme starting.

In an update on Tuesday, finance minister Mthuli Ncube said out of the US$146 million owed to farmers in total, US$20 million will be paid this year while the balance will be covered over the next four years.

“I am pleased to announce that the compensation process has begun. We believe that this process is crucial for building trust, honouring our commitments, and ensuring consistency with our Constitution as we address Zimbabwe’s debt challenge. The payments towards the compensation of investors under BIPPA protection began in the second week of January 2025,” he said.

Ncube said the payments to farm owners under BIPPA marks a critical step in Zimbabwe’s Arrears Clearance and Debt Resolution Process.

“The payments towards the compensation of investors under BIPPA protection began in the second week of January 2025. Payments are being made to the claimants’ Bank accounts of choice,” he said.

Only claimants from countries with BIPPAs signed and ratified before the 2000 Land Reform Programme are eligible for compensation.

The claimants are from Denmark, Germany, the Netherlands, Switzerland and former Yugoslavia.

Harare-based ambassadors of Germany, the Netherlands and Switzerland jointly welcomed the announcement.

“The framework established by the Government of Zimbabwe leading to the full compensation of affected BIPPA farmers protected by Bilateral Investment Promotion and Protection Agreements, is indeed a historic achievement.

“Several affected investors have received initial payouts, and an emerging sense of closure exists. It marks a significant milestone, and we consider it a very encouraging step towards a comprehensive and fair settlement for farmers and investors in Zimbabwe, be it in terms of financial compensation or land tenure. Now, it is important for the Government to keep this positive momentum,” the ambassadors said.

After the disbursement of the US$20 million allocated in the 2024 National Budget for the BIPPA-protected farms, the balance, amounting to US$125.9 million, will be paid under a multi-year payment plan, where the government will make fiscal allocations through Annual National Budgets over the next four years, 2025 to 2028.