Workers harvest tobacco at a farm outside Harare, Zimbabwe.
Image: Reuters, Mike Hutchings
The Government of Zimbabwe has officially commenced the compensation process for Former Farm Owners (FFOs) as part of its obligations under the Global Compensation Deed (GCD), a commitment it made in 2020.
This move is seen as a significant step forward in addressing past grievances stemming from the controversial land reforms initiated in the early 2000s.
As of now, the Land Compensation Committee has approved compensation for 740 farms.
The government's initial disbursement is set at US$3.1 million, covering the first batch of 378 processed farms.
This amount reflects a modest 1% of the total compensation claim value of US$311 million, signalling both the commitment and constraints the nation faces.
In tandem with this, the Zimbabwean government has recently issued Treasury bonds linked to these payments which will be managed by a custodian bank.
According to the terms of the GCD, former farm owners will receive 1% of their claim in cash, while the remaining compensation is structured through US$ denominated Treasury bonds, bearing a 2% coupon with a range of maturities from 2 to 10 years.
These bonds come with various benefits, including liquid asset status, tax exemption, and are tradable, making them a viable option for concerned farmers.
Minister of Finance, Economic Development and Investment Promotion, Honourable Professor Mthuli Ncube, expressed the government's commitment to reform and debt resolution.
“The payments will continue. We are very serious about this. By settling our arrears, we can tap into long-term capital, which is essential for infrastructure development and other significant investments,” he stated, underscoring the wider implications these payments have on economic growth and access to international financing," Ncube said.
Willard L. Manungo, Deputy Chief Secretary in the Office of the President and Cabinet, heralded the compensation as a hallmark of government reform.
“These positive developments not only represent a commitment to compensation but also augment Zimbabwe’s efforts in re-engagement with the global community,” Manungo said.
The recent disbursement marks another milestone in Zimbabwe's endeavour to resolve its historic debt; in February 2025, the government completed the initial disbursements of US$20 million specifically for BIPPA-protected investors who had suffered losses from the land reforms. Both actions signal crucial steps towards clearing arrears and restoring debt sustainability, essential for unlocking future external financing opportunities.
Andrew J. Pascoe, Chairperson of the Compensation Steering Committee, noted the significance of these initial payments, describing the event as “another momentous occasion” for former farm owners who have waited nearly two decades for these compensations.
Pascoe recalled the signing of the GCD, “After almost 20 years, we were able to put aside our differences and negotiate an agreement that laid the foundation for compensation related to the government’s acquisition of farms,” he said,
Pascoe also extended gratitude to President Mnangagwa for honouring the country's commitment to compensate affected farmers.
The compensation initiative operates under the Sector Working Group overseeing Land Tenure Reforms and BIPPA resolutions, revealing a strategic approach towards managing the nation’s agricultural reparations.
The United Nations Development Programme (UNDP) has welcomed these developments, affirming their support for a transparent compensation process crucial for economic recovery.
Switzerland's Ambassador to Zimbabwe, H.E. Stéphane Rey, said that the initial payments is a “step in the right direction,” with hopes for more farmers to come forward as compensation processes evolve.
Despite financial constraints, the Government of Zimbabwe is determined to advance its economic agenda through this compensation framework, appealing for support from development partners to further bolster its Arrears Clearance and Debt Resolution efforts.
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