Zimbabwe Pays US$40 Million to BIPPA-Protected Farmers as Compensation Programme Advances

By Southerton Business Times Reporter HARARE — The Government of Zimbabwe has paid US$40 million in compensation to former commercial farmers protected under Bilateral Investment Promotion and Protection Agreements (BIPPAs), with 93 farms now benefiting from the programme as authorities move to resolve long-standing land compensation obligations.

According to the latest report on Zimbabwe's Structured Dialogue Platform (SDP) Arrears Clearance and Debt Resolution Process, 16 farms have been fully compensated, while 77 have received partial payments under a compensation package valued at US$130.5 million. The programme covers claimants from Denmark, Germany, the Netherlands, Switzerland and the former Yugoslavia, whose farms were acquired during Zimbabwe's Fast-Track Land Reform Programme that began in 2000.

The Netherlands accounts for the largest share of beneficiaries, with 44 farms receiving US$20.1 million. Of these, six have been fully compensated while 38 have received partial payments. Switzerland follows with 27 farms receiving US$11.9 million, including four fully compensated properties and 23 partially paid claims. Germany has 14 compensated farms valued at US$4.8 million, while Denmark has seven farms that have collectively received US$2.8 million in partial payments. One farm protected under the former Yugoslavia agreement has received US$400,000.

The compensation process was launched in May 2024, when the Government invited applications from BIPPA-protected investors whose properties had been acquired during the land reform programme. Following verification by the Land Compensation Committee, 97 farms were initially declared eligible. However, four properties were later removed from the compensation list after their owners opted for the restoration of title because the farms had not been occupied. This left 93 qualifying farms, with verified claims amounting to US$130.5 million.

The report states that 10 farms worth US$1.9 million were fully compensated during the 2024 payment cycle. A further six farms valued at US$2.3 million were fully settled in 2025, bringing the total number of fully compensated properties to 16. Government said compensation payments are being made through an agreed formula under the Land Tenure Reforms, Compensation of Former Farm Owners and Resolution of the BIPPAs Sector Working Group, which distributes annual Treasury allocations equally among qualifying claimants.

The 2026 National Budget allocated a further US$20 million towards the programme, while Government has committed to settling the remaining US$70.5 million through allocations in the 2027 and 2028 national budgets. The compensation programme forms part of Zimbabwe's broader economic reform agenda aimed at resolving legacy land issues, strengthening investor confidence and supporting the country's Arrears Clearance and Debt Resolution Process, which seeks to normalise relations with international creditors and development partners.

Government has consistently maintained that honouring obligations under BIPPAs is a key step towards rebuilding confidence among foreign investors while addressing historical investment disputes arising from the land reform programme.

Zimbabwe BIPPA compensation