Harare – Zimbabwe has begun to fulfill its commitment to compensate former farm owners (FFOs) claims based on the World Compensation Deed (GCD) signed in 2020.
To date, 740 farms have been approved for compensation by the Land Compensation Committee.
In this respect, the government paid US$3.1 million for the first batch of 378 processed farms.
This amount is USD 311 million, 1% of the total compensation claim.
Last week, the government also issued financial obligations related to the first batch of farmers to Custodian Bank.
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In line with the GCD agreement, the FFO will receive 1% of the claim in cash, with balances being paid US $ Treasury debt at maturity with a 2% coupon of 2-10 years.
These bonds have liquid asset status, stipulated asset status, tax-free, and tradable and transferable features.
The government allocated US$10 million in its national budget for FFO compensation under the GCD.
Compensation is paid to individual farmers of interest.
With an update on Zimbabwe's Finance Minister, economic development and investment promotion, the Honorable Professor Mushli Nutchube reaffirmed the government's commitment to continuing reforms to resolve the country's arrears and resolve the debt burden.
“The payments will continue. I'm very serious about this,” said Professor Ncube's Finance Minister.
“Resolving delinquent payments will allow us to leverage long-term capital, which is essential for infrastructure development and other important investments.
“This is not only important to the Zimbabwean government, but it also affects the private sector, which faces restrictions from creditors due to these arrears.
“Living these caps will make it easier to access foreign capital and raise funds to support industry and create meaningful jobs for citizens.”
Willard L. Manungo said he commented on compensation from the President and the Deputy Director of the Cabinet Office FFO.
Manungo, who is also co-chair of the Sector Working Group (SWG) on land holding reform, FFO compensation and resolution of bilateral investment protection and promotion agreements, added:
“It also supports the country's reengagement efforts with the international community.”
FFO coverage marks another important milestone in the country's arrears clearance and debt resolution process.
In February 2025, the government signed its first US$20 million payments to compensate BIPPA conservation investors, where farms affected by the 2000 Land Reform Program are protected.
Both historic milestones are key steps as Zimbabwe aims to clear arrears to meet its development goals, restore debt sustainability and unlock external funding for new concessions.
He is the chairman of the Compensation Steering Committee and former chairman of Andrew's Union of Commercial Farmers. J. Pascoe confirmed receipt of payment and described the development as “another important event.”
“On Monday, March 24, 2025, the first US dollar cash payment under this plan will be paid to the former farm owners who have been signed up,” Pascoe said.
Pascoe added. “When I signed GCD on July 29, 2020 on State House on behalf of FFOS, I highlighted the enormous achievements.
“Nearly 20 years later, Zimbabweans were able to put our differences aside and negotiated an agreement to lay the foundation for building a foundation for farm improvement compensation acquired by the Zimbabwean government under the First Trackland Reform Programme, in an atmosphere of mutual respect and trust.”
“On behalf of these farmers, we would like to sincerely thank Dr. Ed Mnangagwa and his government for their cooperation in the 2018 compensated commitment to pay compensation for acquired farms in line with the Zimbabwe Constitution.
“For this reason, we are extremely grateful and believe that the continued support of the commitments made will attract and strengthen the local, regional and international goodwill that are essential for the current structured dialogue platform (SDP) to be successful in the delinquent clearance and debt resolution process.”
FFO compensation under the GCD falls under the SWG regarding land ownership reform, FFO compensation and Bippas resolution.
This strategic pillar is co-chaired by the Swiss president and Cabinet Office.
The other two pillars are reforms in economic growth and stability, and reforms in governance.
Dr. Ayodele Odusola, a UNDP resident and representative of Zimbabwe, said:
“These steps are essential to reconstruction, progress in reconciliation and reconstruction of Zimbabwe's agricultural sector.
“We remain committed to supporting transparent, inclusive and sustainable processes that contribute to economic recovery and reengagement.”
His Swiss ambassador to Zimbabwe stated: “We are pleased to announce that we are a great success in our efforts to help people understand the importance of our efforts to ensure that we are a part of our efforts to ensure that we are a part of our efforts to ensure that we are a part of our efforts to ensure that we are a part of our efforts to ensure that we are a part of our efforts to ensure that we are a part of our efforts to ensure that we are a part of our efforts to ensure that we are a part of our efforts to ensure
“It's our hope that GCD will be fully implemented.”
FFO compensation under the GCD is provided by section 295(3) of the Zimbabwe Constitution. This states that the compensation is “only for improvements made on the land when it was acquired.”
Despite the resource challenges, the government continues to make significant progress and is committed to advancing its economic development agenda.
The government is also supporting Zimbabwe's efforts to clear overdue delinquency and resolve debt, seeking support from its development partners.
In December 2022, the Zimbabwe government institutionalized its involvement in economic and governance reform, a structured dialogue platform between all creditors and development partners, to support the arrears clearance and debt resolution process.
This is important to achieve economic development aspirations under the transition towards implementation of Zimbabwe's National Development Strategy 1 (2021-2025) and National Development Strategy 2 (2026-2030).
