Zimbabwe Government Delivers on Commitment: Compensation of Former Farm Owners Under the Global Compensation Deed Commences
- Written by Telegraph Magazine
In February 2025, Government disbursed US$20 million towards compensation of investors protected by Bilateral Investment Promotion and Protection Agreement whose farms were affected by the 2000 Land Reform programme
HARARE, ZIMBABWE - EQS Newswire - 10 April 2025 - Zimbabwe Government has started fulfilling its commitment to compensate Former Farm Owners (FFOs) claims under the Global Compensation Deed (GCD) signed in 2020.To date, 740 farms have been approved for compensation. In this regard, Government disbursed US$3.1 million for the first batch of 378 processed farms. This amount is 1 per cent of the total compensation claim value of US$311 million. Government has also issued Treasury bonds amounting to US$ 308 million for the first batch of farmers.
FFOs receive 1 per cent of their claim in cash, with the balance being paid through US$ denominated Treasury bonds with a 2 per cent coupon and maturities of 2 to 10 years. Government allocated US$10 million in the 2025 National Budget for the compensation of FFOs under the GCD.
Zimbabwe's Minister of Finance, Economic Development, and Investment Promotion, Hon. Prof. Mthuli Ncube, reaffirmed the Government's commitment to reforms aimed at clearing the country's arrears and resolving its debt burden, emphasizing that "payments to FFOs will continue."
"Monday 24 March 2025 saw the first US Dollar Cash payments due under this plan being paid to the signed up FFOs," said Mr. Andrew. J. Pascoe, Chairperson of the Compensation Steering Committee.
Mr. Pascoe thanked His Excellency, President Dr. E.D Mnangagwa for upholding the commitment to compensate FFOs for improvements on farms acquired under the Fast Track Land Reform Programme more than 20 years ago. He believes this move "will attract and strengthen the local, regional and international goodwill that will be vital for the success of the country's current Arrears Clearance and Debt Resolution Process."
UNDP Resident Representative Dr. Ayodele Odusola welcomed the progress made under the GCD framework and expressed commitment "to supporting a transparent, inclusive, and sustainable process that contributes to economic recovery and re-engagement."
Ambassador of Switzerland to Zimbabwe, H.E. Stéphane Rey said; "These initial payments are a step in the right direction and hopefully more farmers will come forward to seek compensation based on this development."
This compensation marks another historic milestone. In February 2025, Government disbursed US$20 million towards compensation of investors protected by Bilateral Investment Promotion and Protection Agreement whose farms were affected by the 2000 Land Reform programme. Both milestones are key as Zimbabwe seeks to clear its arrears, restore debt sustainability, and unlock new concessional external financing to achieve its development goals. Zimbabwe further calls for support from partners to complement its efforts.
Distributed by APO Group on behalf of Zimbabwe's Ministry of Finance, Economic Development and Investment Promotion.
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