The Zimbabwean government has started making payments to Former Farm Owners (FFOs) under the Global Compensation Deed (GCD) – a 2020 agreement that aims to compensate commercial farmers displaced during the country’s land reform program for improvements made on the land.
In a statement issued this week, the Ministry of Finance, Economic Development, and Investment Promotion confirmed that a round of payments had been made as interim relief, marking what it described as continued progress in fulfilling obligations under the deal.
“Payments have been made to Former Farm Owners (FFOs), as part of the interim relief under the Global Compensation Deed (GCD), signed in 2020,” the statement read.
According to the ministry, about 740 farms have been approved to date for compensation by the Land Compensation Committee with the government disbursing US$3.1 million for the first batch of 378 processed farms.
‘This amount represents about 1 % of the total compensation claim value of US$311 million. Last week, the government also issued Treasury bonds related to the first batch of farmers to their custodian bank.
In line with the GCD agreement, the FFOs receive 1% of their claim in cash, with the balance being paid through US dollar-denominated Treasury bonds with a 2% coupon and maturities of 2 to 10 years. These bonds have the following features: liquid asset status, prescribed asset status, tax exemption, tradable and transferable.
The government allocated US$10 million in the 2025 National Budget for the compensation of FFOS under the GCD. Compensation payments are being made to interested individual farmers.’
Giving an update on the progress, Finance Minister Professor Mthuli Ncube, reaffirmed the government’s commitment to continue implementing reforms that are key to clearing the country’s arrears and resolving the debt burden.
“The payments will continue. We are very serious about this. By settling our arrears, we can tap into the long-term capital, which is essential for infrastructure development and other significant investments. This is not just crucial for the Zimbabwean government; it also impacts our private sector, which faces restrictions from creditors due to these arrears. Lifting these caps will facilitate access to foreign capital, making it easier to obtain financing to support our industries and create meaningful jobs for our citizens,” he said.
The GCD, signed between the government and representatives of the former commercial farming community, is valued at US$3.5 billion. It focuses on compensating for infrastructural improvements such as buildings, irrigation systems, and equipment—not the land itself, in line with the Constitution of Zimbabwe.
The government has previously indicated that full funding of the agreement would require a combination of domestic efforts and external financing. Observers say the interim payments, while symbolically significant, highlight the complexities of balancing financial constraints with reconciliation efforts.
Economic analysts have described the move as important for investor confidence, particularly as Zimbabwe continues to engage with creditors over debt arrears and economic reforms. At the same time, they warn that greater transparency is needed to build public trust and ensure equitable implementation.
“This is a step forward in addressing a sensitive issue,” said one policy expert. “But the process must remain transparent and inclusive to avoid new tensions.”
The government has emphasized that the compensation process does not reverse the Land Reform Program, which it maintains was necessary to address historical imbalances. Instead, it sees the GCD as part of efforts to build a more inclusive and legally sound agricultural sector.
As the country works to boost agricultural productivity and rural development, the challenge will be ensuring that historical redress is matched by forward-looking support for resettled farmers and communities that remain vulnerable.