HARARE, Feb. 11 (Xinhua) -- The Zimbabwean government said Tuesday that it has begun disbursing funds to fully compensate former white commercial farmers whose land was compulsorily acquired during the land reform program that started in the early 2000s.
A total of 94 farms, covering 56 farmers, have been approved for compensation for both the land and improvements made on the farms, with a total value of 145.9 million U.S. dollars, Zimbabwean Finance Minister Mthuli Ncube said in a statement released to the media on Tuesday.
He said only farms protected under the Bilateral Investment Protection and Promotion Agreements (BIPPAs), signed and ratified before the 2000 land reform program, are eligible for compensation.
The disbursements follow the release of funds from the 20 million dollars allocated in Zimbabwe's 2024 national budget for the compensation of BIPPA-protected farms, Ncube said. The remaining 125.9 million dollars will be paid through fiscal allocations staggered from 2025 to 2028.
"The payments to farm owners under BIPPA protection mark a historic milestone and a critical step in Zimbabwe's arrears clearance and debt resolution process," he said.
As Zimbabwe engages with its external creditors for debt relief and restructuring, Ncube said the successful implementation of these reforms is a key component of the country's efforts to clear arrears and achieve debt sustainability, which is essential for unlocking new concessional external financing.
"This is critical for the country to achieve its economic development aspirations," he added.
