Zimbabwe Initiates Compensation Payments to Former White Farmers Amid Economic Reform

In a historic move, Zimbabwe's government has announced an initial payout of US$3 million (£2.3 million) to white farmers whose properties were expropriated during a contentious land reform program between 2000 and 2001. This payment comes as part of a larger compensation agreement signed in 2020, in which the state committed to pay $3.5 billion (£2.6 billion) for the lands seized. The first disbursement will cover 378 of the 740 farms approved for compensation, representing merely 1% of the allocated $311 million for this initial phase.

Finance Minister Mthuli Ncube emphasized the government's intent to honor its commitment to compensate former farm owners for the improvements made on the seized properties, while maintaining that the land itself will not be compensated due to its colonial-era acquisition. Despite efforts to engage more farmers to accept the deal, many former landowners are still hesitant, holding onto their title deeds. The government began compensating foreign investors in January, aiming to restore financial relationships following decades of isolation caused by the initial land reform policies initiated by former President Robert Mugabe. President Emmerson Mnangagwa has been actively working to restore ties with the West since taking office in 2017, pledging that while land reform is irreversible, compensation represents an important step in mending relations and can contribute to economic recovery in Zimbabwe, which is facing significant foreign debt and global financial exclusion.