The Zimbabwean government has initiated a compensation program, beginning with a US$3 million (£2.3m) payment to white farmers whose properties were seized over two decades ago. This marks the first installment under a compensation agreement signed in 2020, in which the government committed to paying a total of US$3.5 billion (£2.6bn) to compensate for land confiscated during the controversial land reform program.
Between 2000 and 2001, thousands of white farmers were forcibly removed from their land as part of a government initiative to address colonial-era land imbalances. While the government justified the land seizures as a necessary step to correct the injustices of colonization, the program led to a severe economic downturn and strained relations with Western nations. The controversial policy, which was often carried out violently, had a lasting impact on the country’s agricultural sector and overall economy.
The initial payment, announced Wednesday, will cover the first 378 farms, out of the 740 farms for which compensation has been approved. The payment represents just 1% of the $311 million earmarked for this first batch of payouts, with the remaining compensation to be disbursed through US-dollar denominated Treasury bonds, according to Zimbabwe’s Finance Minister Mthuli Ncube.
“This is part of our broader effort to reform the Zimbabwean economy and clear our arrears,” Ncube said. “We are now starting to honor the agreement to compensate former farm owners who lost their land during the land reform program.”
However, the compensation has been a point of contention. The government has agreed to pay former farm owners for improvements made to the land but has refused to compensate for the land itself. The government argues that the land was unfairly seized during colonial rule. Additionally, foreign-owned farms have been prioritized for compensation under separate negotiations.
Despite the government’s efforts, many former farmers remain reluctant to accept the compensation deal, with many still holding onto their title deeds. Harry Orphanides, a representative of the farmers, told the BBC that more farmers are now showing interest in signing up for compensation, though the majority have not yet agreed to the terms.
In January, Zimbabwe began compensating foreign investors whose farms were protected under bilateral investment agreements, signaling a broader shift in the country’s approach to land reform. Since gaining independence in 1980, Zimbabwe has worked to redistribute land to black farmers, after decades of colonial policies that restricted land ownership to the white minority.
The land reform program, supported by then-President Robert Mugabe in 2000, led to violent invasions of white-owned farms by government forces and vigilante groups. This sparked international condemnation, and Zimbabwe’s relations with Western governments deteriorated significantly.
Under President Emmerson Mnangagwa, who took office in a 2017 coup, Zimbabwe has made efforts to restore ties with Western nations. While Mnangagwa has stated that land reform cannot be reversed, he has committed to compensating former landowners as part of his efforts to mend relations and secure international support.
Analysts view the land compensation payments as a crucial step in repairing Zimbabwe’s diplomatic relations with Western countries and potentially avoiding further international sanctions. With Zimbabwe locked out of the global financial system for over two decades, these payments represent an attempt to address past injustices and pave the way for future economic recovery.
