Industry leaders welcomed the announcement that the Zimbabwean government is compensating former farm owners (FFOs) under the Global Compensation Deed (GCD). As per the agreement, claimants would receive 1 percent of their claim in cash.
Minister of finance, economic development, and investment promotion, Professor Mthuli Ncube, said the balance would be paid through US$-denominated treasury bonds with a 2 percent coupon and maturities of 2 to 10 years.
Ncube said the government allocated US$10 million in the 2025 national budget for the compensation of former farm owners, and compensation payments are being made to interested individual farmers.
Zim govt committed to settling the debt
He said the government is committed to implementing reforms that are key to clearing the country’s arrears and resolving the debt burden.
“The payments will continue. We are very serious about this. By settling our arrears, we can tap into the long-term capital, which is essential for infrastructure development and other significant investments. This is not just crucial for the Zimbabwean government; it also impacts our private sector, which faces restrictions from creditors due to these arrears.
“Lifting these caps will facilitate access to foreign capital, making it easier to obtain financing to support our industries and create meaningful jobs for our citizens,” he said.
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The deputy chief secretary in the office of the president and cabinet, Willard Manungo – who is also the co-chair of the Sector Working Group (SWG) on Land Tenure Reforms, Compensation of FFOs, and the Resolution of Bilateral Investment Protection and Promotion Agreements (BIPPAs) – said the compensation is another demonstration of the government’s commitment to the country’s reform agenda.
“These positive developments present Zimbabwe with a strong opportunity to successfully negotiate its arrears clearance and outstanding debt obligations. It is also a boost towards the country’s re-engagement efforts with the international community,” he said.
The chairperson of the Compensation Steering Committee and past president of the Commercial Farmers Union, Andrew Pascoe, confirmed receipt of payments, describing the development as another momentous event.
“On Monday, 24 March 2025, saw the first US Dollar Cash payments due under this plan being paid to the signed up former farm owners.”
Andrew Pascoe
Strengthening Zimbabwe’s agriculture
“On 29 July 2020, at State House, when I signed the GCD on behalf of FFOs, I highlighted the enormity of the achievement that it was. After almost 20 years, we, as Zimbabweans, had been able to put aside our differences and, in an atmosphere of mutual respect and trust, negotiated an agreement that laid the foundation for the payment of compensation for improvements on farms,” he said.
Pascoe said they were extremely grateful and were confident that the ongoing upholding of the commitments made will attract and strengthen local, regional and international goodwill.
National African Farmers’ Union (Nafu) South Africa President Motsepe Matlala congratulated the government of Zimbabwe for a step in the right direction.
“We applaud the government. We have known that this have been ongoing negotiations for quite some time. We are happy that common ground was reached, and we are excited to see that all parties are able to come around the table and talk. There is no future without agriculture; we all need to work together,” he said.
Matlala said that Zimbabwe can now put the past behind and focus on rebuilding the country through agriculture to improve the economy, feed the nation, and create jobs for millions of Zimbabweans.
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