Government pays US$3.1 million to former white farmers for land improvements
The Zimbabwean government has paid out US$3.1 million to former white farmers as compensation for improvements made on farms acquired under the land reform programme.
“This is yet another demonstration of the Government’s commitment to the country’s reform agenda,” said Mr Willard Manungo, Deputy Chief Secretary in the Office of the President and Cabinet.
The payments come under the Global Compensation Deed (GCD), signed in 2020, and represent the first batch of disbursements to the former farm owners (FFOs). So far, 378 processed farms have received payments. These make up part of the 740 farms approved by the Land Compensation Committee.
More than just a cheque
The cash payout of US$3.1 million represents 1% of the total US$311 million claim value for this batch.
“Monday 24 March 2025 saw the first US Dollar Cash payments due under this plan being paid to the signed-up Former Farm Owners,” said Mr Andrew J. Pascoe, Chairperson of the Compensation Steering Committee.
The remaining compensation will be paid out through US dollar-denominated Treasury bonds. These bonds, which carry a 2% interest rate and mature between 2 and 10 years, are:
-Tax exempt
-Tradable and transferable
-Given liquid and prescribed asset status
Mr Pascoe, also a former president of the Commercial Farmers Union, described the moment as a “momentous event”.
“After almost 20 years, we, as Zimbabweans, had been able to put aside our differences… and negotiated an agreement that laid the foundation for the payment of compensation,” he said.
He added:
“We are extremely grateful and confident that the ongoing upholding of the commitments… will attract and strengthen local, regional and international goodwill.”
GCD linked to wider reform and re-engagement
The compensation is part of a broader agenda aimed at addressing Zimbabwe’s longstanding debt and arrears issues.
“By settling our arrears, we can tap into the long-term capital… crucial for infrastructure development and other significant investments,” said Finance Minister Professor Mthuli Ncube.
“This is not just crucial for the Zimbabwean Government; it also impacts our private sector, which faces restrictions from creditors.”
In February 2025, the Government disbursed US$20 million towards the compensation of BIPPA-protected (Bilateral Investment Promotion and Protection Agreements) farms. These investors were also affected by the 2000 Land Reform Programme.
UNDP Resident Representative to Zimbabwe, Dr Ayodele Odusola, welcomed the developments.
“UNDP welcomes the progress being made… These steps are vital for restoring trust, advancing reconciliation, and rebuilding Zimbabwe’s agricultural sector.”
A structured process with global backing
The compensation process is supported by the Structured Dialogue Platform (SDP), which was launched in December 2022. It aims to bring all creditors and development partners into one framework for dialogue around reforms.
The GCD compensation effort forms part of the Land Tenure Reforms pillar, one of three pillars under the SDP. The other two are:
-Economic Growth and Stability Reforms
-Governance Reforms
The land reform-related pillar is co-chaired by the Office of the President and Cabinet, the Swiss Government, and the United Nations Development Programme (UNDP).
Swiss Ambassador to Zimbabwe, H.E. Stephane Rey, commented:
“These initial payments are a step in the right direction… It is also our hope that the GCD be implemented fully.”
The Zimbabwean Constitution, in Section 295(3), provides for compensation only for improvements made on acquired land, not for the land itself.
Despite facing fiscal constraints, the Government remains firm on its commitment.
“We are very serious about this,” said Prof. Ncube. “Lifting these caps [from creditors] will facilitate access to foreign capital… and create meaningful jobs for our citizens.”
Zimbabwe has allocated US$10 million in the 2025 National Budget specifically for GCD-related compensation.
The Government is calling on development partners to support the process, which it says is central to achieving its National Development Strategy 1 (2021–2025), and the transition to National Development Strategy 2 (2026–2030).
