Zimbabwe High Court: Compensation for BIPPA-Protected Former White Farmers

• The Zimbabwean government has paid out US$40 million in compensation to 93 farms protected under BIPPA.
• A total of US$70.5 million is still outstanding, with the government pledging to settle it through future budget allocations.
• 16 farms have been fully compensated, while 77 have received partial payments.
• The compensation programme is part of Zimbabwe's efforts to resolve long-standing disputes arising from the Fast-Track Land Reform Programme.

The Zimbabwean government has made significant progress in compensating former white farmers whose properties were protected under Bilateral Investment Promotion and Protection Agreements (BIPPA). A total of US$40 million has been paid out to 93 farms, with the remaining US$70.5 million still outstanding. The compensation programme is part of Zimbabwe's efforts to resolve long-standing disputes arising from the Fast-Track Land Reform Programme. To date, 16 farms have been fully compensated, while 77 have received partial payments. The government has pledged to settle the outstanding amount through future budget allocations.

The compensation programme is a key component of Zimbabwe's broader efforts under the Structured Dialogue Platform on Arrears Clearance and Debt Resolution. This platform aims to resolve disputes arising from the country's Fast-Track Land Reform Programme, which was implemented in the 2000s. The programme has been criticized for its impact on foreign investors, leading to a decline in investor confidence. To address this issue, the government has established a framework for compensating former farm owners whose properties were protected under BIPPA. This framework involves annual Treasury allocations distributed proportionately among all qualifying claimants.

The compensation programme is crucial in restoring investor confidence and advancing Zimbabwe's arrears clearance and debt resolution agenda. The government has earmarked US$20 million for the programme in the 2026 National Budget, with a further US$50 million to be settled through annual budget allocations in 2027 and 2028. This development is significant for lawyers advising clients with BIPPA-protected properties in Zimbabwe, as it may impact their clients' financial obligations or property rights. The government's efforts to compensate former farm owners are also seen as a step towards resolving long-standing disputes arising from the Fast-Track Land Reform Programme.

Lawyers advising clients with BIPPA-protected properties in Zimbabwe should monitor the government's compensation framework, which may impact their clients' financial obligations or property rights.

Source: Original reporting via AllAfrica Zimbabwe