Zimbabwe begins compensation for BIPPA-protected investors

CLOUDINE MATOLA

Zimbabwe has officially commenced the long-awaited compensation process for investors protected under the Bilateral Investment Protection and Promotion Agreements (BIPPAs), following the disbursement of an initial US$20 million.

Finance Minister Mthuli Ncube confirmed the development, emphasizing the government’s commitment to honoring its international obligations and fostering investor confidence.

The compensation plan, which aims to redress losses incurred by foreign investors during the 2000 land reform program, marks a critical step in Zimbabwe’s broader economic recovery strategy. The initiative is part of the government’s efforts to address historical grievances, clear arrears, and rebuild trust with international creditors and development partners.

 

Professor Ncube underscored the significance of this initiative in reinforcing Zimbabwe’s commitment to upholding legal and constitutional obligations.

“I am pleased to announce that the compensation process has begun. This initiative is crucial for building trust, fulfilling our commitments, and ensuring alignment with constitutional provisions as we address Zimbabwe’s debt challenge,” he stated.

The government’s decision to compensate affected investors aligns with its broader economic reform agenda. As part of this process, Zimbabwe is implementing a structured dialogue platform to facilitate arrears clearance and debt resolution, a move seen as pivotal in restoring international financial credibility.

The government has earmarked a total of US$145.9m for compensation, with US$20m already disbursed from the 2023 national budget. The remaining US$125.9m will be settled through a multi-year payment plan spanning 2025 to 2028. Additionally, another US$20m has been allocated in the 2025 national budget to sustain the compensation process.

This financial commitment reflects Zimbabwe’s dedication to engaging with international stakeholders while ensuring gradual fiscal sustainability.

Professor Ncube reiterated that these payments would be made through annual national budget allocations, reinforcing transparency and accountability in the process.

Compensating former landowners is a crucial component of Zimbabwe’s debt resolution strategy, particularly under the structured dialogue platform initiated in December 2022. The platform, established in collaboration with international creditors and development partners, aims to institutionalize engagement on economic and governance reforms.

Professor  Ncube highlighted that the successful implementation of these reforms is essential for Zimbabwe’s efforts to clear arrears and achieve debt sustainability.

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