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

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

Download
Image
(1):

apo-opa.co/3Q9tX08

Download
Image
(2):

apo-opa.co/3WR1b8k

Download
Image
(3):

apo-opa.co/42LnIHa

Download
Image
(4):

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:

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:

apo-opa.co/3Q8JY6A

Download
Document: apo-opa.co/4grXMUo
 

Contact:
Telephone:
+263
242
794572-9
WhatsApp: +263
719
567
091/719
567113

www.ZimTreasury.co.zw

Social
Media:
Facebook: Zim
Treasury
X: @
Zimtreasury