HARARE, Zimbabwe (BG) — The Government of Zimbabwe has commenced payments to Former Farm Owners (FFOs) under the Global Compensation Deed (GCD), fulfilling part of a 2020 agreement aimed at settling claims related to the country’s land reform program.
The Land Compensation Committee has approved 740 farms for compensation, with $3.1 million disbursed to the first 378 processed farms, representing 1% of the total $311 million claim value.
The Ministry of Finance, Economic Development and Investment Promotion said Wednesday that Treasury bonds have also been issued to the FFOs through their custodian bank.
Under the GCD, FFOs receive 1% of their claim in cash, with the remainder paid through U.S. dollar-denominated Treasury bonds carrying a 2% coupon and maturities of two to 10 years. The government allocated US$10 million in the 2025 National Budget to support the compensation program.
Finance Minister Mthuli Ncube reaffirmed the government’s commitment to economic reforms and debt clearance efforts, stating, “settling our arrears, we can tap into the long-term capital, which is essential for infrastructure development and other significant investments.”
Willard Manungo, Deputy Chief Secretary in the Office of the President and Cabinet, described the payouts as a major step forward in Zimbabwe’s reform and re-engagement agenda.
Andrew J. Pascoe, chair of the Compensation Steering Committee and former president of the Commercial Farmers Union, confirmed the first cash payments were made on March 24 and described the development as “another momentous event.”
The compensation process also supports broader efforts to resolve arrears and restore international trust.
It falls under one of three pillars of Zimbabwe’s Structured Dialogue Platform, alongside economic reforms and governance improvements.
UNDP Resident Representative Dr. Ayodele Odusola and Swiss Ambassador Stéphane Rey welcomed the progress, urging full implementation of the GCD to aid economic recovery and reconciliation.
The payments are made under Section 295(3) of Zimbabwe’s Constitution, which provides for compensation for improvements made on acquired land.
