Hashtag
Men's Weekly

Zimbabwe Government Honours its Commitment to Compensate Investors Under Bilateral Investment Protection and Promotion Agreements (BIPPAs)

The payments to farm owners under BIPPA-protection marks a historic milestone and a critical step in Zimbabwe’s Arrears Clearance and Debt Resolution Process

HARARE, ZIMBABWE – EQS Newswire - 8 February 2025 - The Government of the Republic of Zimbabwe is honouring its commitment to compensate investors protected by Bilateral Investment Protection and Promotion Agreements (BIPPAs), whose investments were affected by the Land Reform Programme in 2000.

This follows the disbursement of funds from the US$20 million allocated for the compensation of BIPPA-protected farms in the 2024 National Budget.

The payments to farm owners under BIPPA-protection marks a historic milestone and a critical step in Zimbabwe's Arrears Clearance and Debt Resolution Process.

Providing an update on the payments, the Minister of Finance, Economic Development, and Investment Promotion, Honourable Professor Mthuli Ncube stated, "I am pleased to announce that the compensation process has begun. We believe that this process is crucial for building trust, honouring our commitments, and ensuring consistency with our Constitution as we address Zimbabwe's debt challenge."

The payments towards the compensation of investors under BIPPA protection began in the second week of January 2025. Payments are being made to the claimants' Bank accounts of choice.

Only claimants from countries with BIPPAs signed and ratified before the 2000 Land Reform Programme are eligible for compensation. 94 farms were approved for compensation. The claimants are from Denmark, Germany, the Netherlands, Switzerland and former Yugoslavia.

The Harare-based ambassadors of Germany, the Netherlands and Switzerland jointly welcomed the announcement: "The framework established by the Government of Zimbabwe leading to the full compensation of affected BIPPA farmers protected by Bilateral Investment Promotion and Protection Agreements, is indeed a historic achievement. We commend the Government's allocation of funds in the National Budget as of 2024 to make the compensation a reality. Several affected investors have received initial payouts, and an emerging sense of closure exists. It marks a significant milestone, and we consider it a very encouraging step towards a comprehensive and fair settlement for farmers and investors in Zimbabwe, be it in terms of financial compensation or land tenure. Now, it is important for the Government to keep this positive momentum."

The BIPPA farmers are being compensated for land and improvements on the farms in line with Section 295 (2) of the Constitution of Zimbabwe.

The President of the African Development Bank Group and the Champion of the Zimbabwe Arrears Clearance and Debt Resolution, Dr Akinwumi Adesina said, "The compensation demonstrates the Government's goodwill and commitment to building trust in the process and improving investor confidence in the country. The progress Zimbabwe has made, the commitment and resilience it is showing, calls for support from development partners to facilitate the country's effort in implementing on going reforms and to provide the much-needed cushion to particularly the vulnerable members of the population."

The compensation of these investors is one of the key reforms under the Structured Dialogue Platform on the country's Arrears Clearance and Debt Resolution Process. Zimbabwe aims to clear its arrears, resolve debt, and unlock new concessional external financing to achieve its development goals. The Government established in December 2022, a Structured Dialogue Platform (SDP) with all its creditors and development partners, to institutionalise engagement on economic and governance reforms to underpin the Arrears Clearance and Debt Resolution Process.

The Resolution of BIPPA-protected farms is under the auspices of one of the three Sector Working Groups (SWG) of the country's Structured Dialogue Platform for Arrears Clearance and Debt Resolution Process. It falls under the Land Tenure Reforms, Compensation for Former Farm Owners, and the Resolution of BIPPAs SWG. This SWG is co-chaired by the Office of the President and Cabinet, Switzerland and the United Nations Development Programme. The other two SWGs are Economic Growth and Stability Reforms, and Governance Reforms.

At the last High-Level SDP Meeting held in Harare on 25 November 2024, His Excellency, Dr Emmerson Dambudzo Mnangagwa, the President of the Republic of Zimbabwe, reiterated the Government's ownership of the Arrears Clearance and Debt Resolution Process, and his commitment to the implementation of reforms underpinning the Process, in line with the country's National Development Strategy 1.

The resolution of BIPPAs is also part of the country's engagement and re-engagement initiatives with the international community.

After disbursing the US$20 million from the 2024 National Budget for BIPPA-protected farms, the remaining US$125.9 million will be paid over four years (2025 to 2028) through annual fiscal allocations. Additionally, the Government has allocated another US$20 million in the 2025 National Budget for this purpose.

Table 1: Approved BIPPA Farms for Compensation

Country
Number of Farms Approved for Compensation
Farmers
Value (US$ millions)
Denmark
6
5
13.4
Germany
14
7
14.0
Netherlands
46
33
88.2
Switzerland
27
10
27.0
Former Yugoslavia
1
1
3.3
Total
94
56
145.9


Download Image (1): https://apo-opa.co/3Q9tX08

Download Image (2): https://apo-opa.co/3WR1b8k

Download Image (3): https://apo-opa.co/42LnIHa

Download Image (4): https://apo-opa.co/4hQ4aWH

Caption for Images: Sixth High-Level Structured Dialogue Platform on Zimbabwe's Arrears Clearance and Debt Resolution Process held in the country's capital, Harare in November 2024

Download Video: https://apo-opa.co/3CFZ5kJ

Video Caption: Zimbabwe's Minister of Finance, Economic Development and Investment Promotion, Honourable Professor Mthuli Ncube Speaks about Compensation of Investors under Bippa-protection

Download Audio: https://apo-opa.co/3Q8JY6A

Download Document: https://apo-opa.co/4grXMUo

Social Media:
Facebook: Zim Treasury
X: @ Zimtreasury

The issuer is solely responsible for the content of this announcement.

Business News

Security Industry Transformation Through Advanced VR Training

Australia's security industry, protecting everything from shopping centres to critical infrastructure, faces increasingly complex challenges requiring sophisticated interpersonal skills alongside tr...

Hashtag.net.au - avatar Hashtag.net.au

Commercial Timber: A Sustainable Future for Construction?

In the world of construction, where materials are constantly scrutinised for their environmental impact and long-term viability, the spotlight is increasingly turning towards timber. But not just an...

Hashtag.net.au - avatar Hashtag.net.au

How Data Cabling Powers Your Business: An Explainer

In today's fast-paced business environment, reliable and efficient communication is paramount. At the heart of this communication lies something often overlooked but utterly essential: the network o...

Hashtag.net.au - avatar Hashtag.net.au

Rubbish Removals That Make Life Easier and Spaces Cleaner

Modern life comes with a lot of waste—both literal and metaphorical. Old appliances, broken furniture, yard debris, outdated electronics, and general clutter often build up faster than expected. Tha...

Hashtag.net.au - avatar Hashtag.net.au

Party Venues Adelaide – Unique Spaces for Every Occasion

Adelaide is quickly becoming one of Australia's top choices for hosting memorable events, and the demand for quality party venues Adelaide is growing steadily. Whether it’s a birthday bash, engageme...

Hashtag.net.au - avatar Hashtag.net.au

Why Shopify Web Development Is the Backbone of a Successful Online Store

Shopify has quickly become one of the top eCommerce platforms globally, powering over a million businesses of all sizes. But having a Shopify store isn’t the same as having a high-performing one. Th...

Hashtag.net.au - avatar Hashtag.net.au

Health & Wellness

5 Signs Your Loved One Might Benefit from In-Home Therapy Support

Hashtag.net.au - avatar Hashtag.net.au

Living with a disability or health condition can present daily challenges, especially when accessing regular therapy support outside the home. That’s why many individuals and their families are turn...

Connecting You to Community: The Role of Your NDIS Disability Services Provider in Inclusion

Hashtag.net.au - avatar Hashtag.net.au

(Source)When discussing disability services, it is tempting to focus on the practical aspects, such as daily routines, mobility aids, and support workers. However, after all that, there is another thi...

Balancing Efficiency with Compliance in Healthcare Environments

Hashtag.net.au - avatar Hashtag.net.au

In today’s complex healthcare landscape, striking the right balance between operational efficiency and regulatory compliance is more than a best practice—it’s a necessity. Healthcare organisations m...