THE African Development Bank (AfDB) has praised the government of Zimbabwe for disbursing US$20 million towards the compensation of bilateral investment promotion and protection agreements (Bippa) investors affected by the controversial 2000 land reform programme.
This week, Treasury announced that it had begun honouring its commitment to compensate investors under Bippas whose investments were affected by the land reform programme.
Treasury disbursed US$20 million for the compensation of these Bippa-protected farms in the 2024 National Budget, with the payments to investors beginning in the second week of last month.
According to the Finance, Economic Development and Investment Promotion ministry, payments are being made to the claimants’ bank accounts of choice.
The ministry revealed that the payment of the balance, amounting to US$125,9 million, will be through a multi-year payment plan, where Treasury will allocate resources in each national budget for the next four years (2025-2028).
In this regard, Treasury has allocated an additional US$20 million in the 2025 National Budget for this purpose.
“Zimbabwe has taken a historic step forward, turning the page on decades of economic challenges by commencing long-awaited compensation payments to affected investors,” AfDB said in a statement.
“This milestone, facilitated by the African Development Bank Group, marks a crucial breakthrough in the nation’s journey toward debt resolution and full re-engagement with the global financial community.
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“The compensation initiative aligns with Zimbabwe’s broader reform agenda, which aims to clear the country’s US$21 billion debt and re-engage with international creditors.”
The bank said it had also demonstrated strong commitment to Zimbabwe’s private sector development by providing US$55 million in lines of credit during 2023 to 2024.
Appointed as the official champion of the process in 2022, outgoing AfDB president Akinwumi Adesina has led a high-level structured dialogue that has significantly advanced Zimbabwe’s engagement with the international financial community.
Since its inception, Adesina and President Emmerson Mnangagwa have participated in six high-level structured dialogues to drive forward the debt resolution process.
“Under Dr Adesina’s leadership, the African Development Bank Group has not only facilitated Zimbabwe’s structured engagement with creditors, but has also committed to mobilising concessional financing through the African Development Fund — the group’s concessional arm — to assist Zimbabwe in clearing its arrears, replicating successful debt resolution models used in Sudan and Somalia,” AfDB said.
“A strong believer in Zimbabwe’s strategic importance for Africa and the global community, Dr Adesina has consistently championed the country’s potential and the urgency of resolving its debt challenges.”
