Zimbabwe Has Paid USD508m to White Farmers Under Land Compensation Deal
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Zimbabwe has paid about USD508 million in compensation to white farmers whose land was seized during the fast-track land reform programme, part of a USD3.5 billion settlement reached in 2020.
Zimbabwe has paid about USD508 million in compensation to white farmers whose land was seized during the country's controversial land reform programme more than two decades ago, as the government seeks to resolve long-running property disputes and rebuild relations with international investors.
The payments include USD12.6 million in cash and the remainder through dollar-denominated bonds, according to Deputy Finance Minister Kudakwashe Mnangagwa, who said the bonds were accepted by farmers who subscribed to the compensation arrangement. "The payments came through after the farmers had accepted and subscribed to the bonds," Mnangagwa said.
The payments form part of a broader USD3.5 billion compensation agreement reached in 2020 between the Zimbabwean government and about 4,000 white farmers whose properties were seized during the fast-track land reform programme. The original agreement was intended to compensate farmers over 10 years, primarily for investments and improvements made on the farms rather than for the land itself.
Zimbabwe has faced significant difficulties in meeting its compensation commitments because of prolonged economic and fiscal challenges, and subsequently revised the payment structure to include dollar-denominated bonds. While some farmers accepted the bonds, others rejected the arrangement. Mnangagwa said the government was not imposing them on individual farmers: "The bonds are not foisted on the individual. The fact that they have been paid, partially in cash and the remainder in bonds, is acceptance."
The government has also begun addressing claims involving foreign-owned properties seized during the reform programme. In May, Zimbabwe announced plans for compensation and the return of several seized farms, covering property owners from countries including Denmark, Germany, the Netherlands and Switzerland.
The USD508 million paid so far represents only part of the original USD3.5 billion commitment. Continued payments will depend on the government's ability to mobilise sufficient financial resources while managing broader economic challenges.