The Government of Zimbabwe has paid US$40 million to a group of 93 former commercial farm owners whose properties were protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs). The payments are part of a compensation plan for developments on land acquired during the country’s land reform program. According to the Ministry of Finance and Economic Development, a balance of US$70.5 million remains outstanding for this group, with the government stating it will be settled through future budget allocations.
The compensation initiative is a component of Zimbabwe’s broader strategy to resolve outstanding international debts and arrears. This process is being managed through the Structured Dialogue Platform on Arrears Clearance and Debt Resolution, a platform facilitated by the African Development Bank and former Mozambican President Joaquim Chissano. The platform aims to help Zimbabwe re-engage with international creditors, including the World Bank and the International Monetary Fund.
BIPPAs are international treaties that establish terms for private investment between two countries. The farms compensated under this specific disbursement were owned by nationals of countries that held such agreements with Zimbabwe. The compensation is for improvements made to the land, such as buildings, dams, and irrigation systems, rather than for the land itself.
This payment is distinct from the larger US$3.5 billion Global Compensation Deed signed in 2020 between the government and representatives of former local commercial farmers who lost their land. That agreement covers approximately 4,500 farmers who are Zimbabwean citizens and were not protected by BIPPAs. The government has been exploring various financial instruments to fund that separate, larger settlement.
The current payments to BIPPA-protected farmers address long-standing arbitration awards and claims made against Zimbabwe in international forums following the land reform program, which began in the early 2000s. The program involved the acquisition of predominantly white-owned commercial farms for redistribution to Black Zimbabwean farmers, with the stated goal of addressing historical land ownership imbalances.
Officials have indicated that settling the BIPPA obligations is a critical step in demonstrating the government’s commitment to upholding property rights and international law, which they see as necessary for attracting new foreign investment. The settlement of these claims is one of several policy reforms discussed within the structured dialogue framework as a prerequisite for clearing arrears and accessing new lines of credit. The Ministry of Finance has not provided a specific timeline for the payment of the remaining US$70.5 million but affirmed it is a priority in upcoming fiscal planning.
