Zimbabwe has made its first payment under a long-awaited $3.5 billion compensation agreement to white farmers who lost property during the controversial land reform program of the early 2000s. The government announced on Wednesday that it has disbursed $3 million to former farm owners, marking a significant step in efforts to repair relations with Western countries and rejoin the global financial system. The payment covers 378 farms, roughly half of the 740 that have been approved for the initial phase of the compensation process. The funds are part of the $311 million set aside for the first round of payments, which will be disbursed in both cash and U.S. dollar-denominated Treasury bonds, according to Finance Minister Mthuli Ncube.
“This payment is a milestone in our economic reforms and debt resolution efforts,” Ncube said. “We are fulfilling our commitment to compensate former farm owners for improvements made on the land they lost during the land reform.” The agreement stems from a 2020 deal between the Zimbabwean government and local white farmers, in which Zimbabwe pledged to pay $3.5 billion for infrastructure and improvements made on seized farms—not for the land itself, which the government says was unjustly acquired during the colonial era.
Between 2000 and 2001, under then-President Robert Mugabe, thousands of white farmers were forcibly evicted from their farms. The often-violent seizures were part of a radical land redistribution effort aimed at reversing colonial-era land ownership patterns, where a small number of white settlers—about 4,000—controlled most of the fertile agricultural land. While the policy sought to empower Black Zimbabweans, the land reform led to a sharp decline in agricultural productivity, a collapse in investor confidence, international isolation, and long-term economic crisis. Western nations imposed sanctions, and Zimbabwe’s access to international financial markets was severely curtailed.
The current president, Emmerson Mnangagwa, who took power in 2017 following a military coup, has maintained that land reform will not be reversed. However, he has made compensating displaced white farmers a priority in order to re-engage with international donors, rebuild investor trust, and normalize relations with Western governments. Harry Orphanides, a representative for the affected farmers, told the BBC that the initial payments have encouraged more former farm owners to enroll in the compensation process. However, many still hold title deeds and have not yet registered for claims. In addition to domestic claimants, the Zimbabwean government began compensating foreign investors in January 2024. These farms had been protected under bilateral investment treaties, and payouts are being handled separately through international negotiations.
Analysts say the compensation initiative is a critical step toward clearing Zimbabwe’s $14 billion external debt, securing new development aid, and possibly lifting some of the longstanding economic sanctions. With inflation surging and infrastructure crumbling, the government views the land compensation program not only as a moral obligation but also a pragmatic move to stabilize the country’s economy and international standing.
