Zimbabwe’s government has compensated the first batch of 85 farmers from European countries who lost their farms during the country’s land reform programme, with 10 of them paid in full.
A document showing a farm compensation schedule, provided to Farmer’s Weekly by Zimbabwe’s Ministry of Finance, Economic Development and Investment Promotion (the ministry), shows that 40 farmers from the Netherlands, 27 from Switzerland, 11 from Germany, six from Denmark, and one from the former Yugoslavia were compensated for losses of land and farm improvements.
The foreign farmers’ investments in Zimbabwe were protected under Bilateral Investment Protection and Promotion Agreements (BIPPAs) that the African country signed with various European nations before the land reform programme began in 2000.
Farmers whose countries signed BIPPAs with Zimbabwe after 2000 are not being compensated for the land itself, only for improvements made on their properties. This includes South African farmers.
In the document, the ministry said 10 European farmers so far have been fully compensated, though it did not disclose the amounts. It confirmed, however, that equal payments of US$215 355 (about R3,7 million) per farm were made to the remaining 75 farmers, who are still awaiting the remainder of their payments.
“The Compensation [Steering] Committee, in September 2024, approved 94 claimants, amounting to US$145,9 million [R2,5 billion],” the document read.
“The Treasury allocated US$20 million [R346 million] towards payment for the compensation of BIPPA farmers in the 2024 National Budget. Following the budget allocation, the Sector Working Group on Land Tenure Reforms, Compensation of [Former Farm Owners] and Resolution of BIPPAs, in May 2024, agreed that the US$20 million be shared equally among the 94 ratified BIPPA-protected farms.
“In December 2024, Treasury paid US$18,2 million [R315 million] for 85 out of the 94 approved applications, and the other nine, which had incomplete documentation, are expected to be paid in due course,” it continued.
The document adds that in March this year, Zimbabwe began compensating former farm owners not covered by BIPPAs, making them eligible to be paid only for improvements they made on their farms, not for the land.
These farmers will receive 1% of their claim in cash, with the remainder paid via US dollar–denominated Treasury bonds over a period of up to 10 years.
According to the document, 740 applications for compensation from former farmers not falling under BIPPAs were approved in 2024, with a total amount of US$587,4 million (R10,1 billion) due.
Of those 740 applications, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development submitted the first batch of 378 farms to the Treasury. These farms were paid a total of US$3,1 million (R53 million), representing 1% of the total claim of US$308 million (R5,3 billion).
“The remaining US$305 million (R5,2 billion), after accounting for the 1% cash payment and interim relief provided to the 378 approved applications, was settled on 1 April 2025 through the issuance of US dollar–denominated Treasury bonds,” the document explained.
It added that in July, the Compensation Steering Committee approved an additional 134 applications for compensation, bringing the total approved claims to 874.
Speaking to Farmer’s Weekly, economist Shingirirai Mashura said compensating dispossessed farmers makes sense as it will positively impact Zimbabwe’s economy and improve its relationship with the international community.
