The Zimbabwean government has initiated partial compensation payments to farmers who lost their land during state-sanctioned seizures in the early 2000s. In a statement released on 9 April, Finance Minister Professor Mthuli Ncube announced the disbursement of an initial US$3.1 million (approximately R58.6 million) in compensation—marking the first step in fulfilling long-standing commitments.
This initial amount covers claims for improvements made on 378 of the 740 farms processed so far. Importantly, the compensation pertains to infrastructure and enhancements made by the farmers—not the land itself. Ncube noted this payment represents just 1% of the total US$311 million value in approved claims.
The compensation is being facilitated under the newly established Farmers Compensation Agreement (FCA), signed in 2024. The FCA replaces the earlier US$3.5 billion Global Compensation Deed (GCD), which was signed in 2020 but later deemed unworkable. The new agreement restructures the compensation to include a mix of cash and US dollar-denominated treasury bonds.
Wendy de la Fargue of Valcon, the firm managing the claims process and database, confirmed that payments had begun and were progressing. However, she acknowledged that receiving only a small portion in cash was far from ideal but reflected the government’s current fiscal limitations.
Despite the government’s announcement, the Compensation Steering Committee (CSC)—the legally recognized body representing most dispossessed farmers—criticized the move as misleading. In a 15 April statement, the CSC said that while the government framed the payments as a breakthrough, the reality was that only a small number of farmers had received support, and the vast majority remained uncompensated.
“The limited number of farmers who accepted the new terms often did so out of desperation,” the CSC said, pointing out that many are struggling with poverty and urgently need funds for basic necessities.
More than 4,500 commercial farmers lost their land, homes, and livelihoods during the land reform program of the early 2000s. While the GCD originally promised US$3.5 billion in compensation—a figure already significantly discounted from the estimated US$10 billion value assessed by the Commercial Farmers’ Union (CFU)—the government failed to honor the deal.
Critics, including Ben Freeth of SADC Tribunal Rights Watch, have described the GCD as deeply flawed, citing lack of transparency, limited legal representation for farmers, and no enforcement mechanisms. “It’s been called one of the worst billion-dollar agreements ever signed,” Freeth wrote.
The revised FCA has also failed to gain broad support. According to a CSC survey in 2023, the majority of farmers rejected the government’s proposal to repay compensation through long-term, low-interest treasury bills spread over a decade. The offer was criticized for providing a mere 2% interest, well below regional US dollar rates of 10–20%.
Deon Theron, acting chairperson of the CSC and former CFU president, said the latest government payments cover less than 10% of affected farmers and represent only a fraction of the already discounted GCD amount.
The CSC—backed by the CFU, Southern African Commercial Farmers’ Alliance (SACFA), and the Southern African Agri Initiative (SAAI)—has rejected the FCA’s bond-based compensation framework and is urging the Zimbabwean government to re-engage in open and constructive dialogue.
“The FCA does not fulfill the constitutional mandate of fair compensation,” the CSC stated. “A lasting and just resolution requires transparency, inclusivity, and genuine negotiation.”
