Zimbabwe says compensation to White farmers whose land was seized 26 years ago has reached $508 million, as the government seeks to rebuild relations with international investors and regain access to global capital markets. The payments form part of a broader effort to resolve the financial fallout from the country’s controversial land reform program.

Payments reach $508 million

“The payments came through after the farmers had accepted and subscribed to the bonds,” Deputy Finance Minister Kudakwashe Mnangagwa said in an interview with Bloomberg in Bulawayo on Wednesday. The compensation includes dollar-denominated bonds issued to farmers, alongside $12.6 million in cash payments, Mnangagwa said.

Zimbabwe’s land seizures began in 2000 under then-President Robert Mugabe, who backed the occupation of White-owned farms by Black subsistence farmers and youths, describing the campaign as a correction to colonial-era land inequalities. About 4,000 White farmers were forced from their properties, while some farmers and hundreds of workers were killed.

Dispute over bond terms

The seizures triggered international sanctions and strained Zimbabwe’s relations with Western governments and investors. In 2020, the government agreed to compensate affected farmers with $3.5 billion as part of efforts to address the economic and diplomatic consequences of the land reform program and rebuild ties with the international community.

Zimbabwe later revised the compensation arrangement to include dollar bonds, rather than relying entirely on cash payments. The revised structure was rejected by some farmers, underscoring the continuing dispute over how compensation should be delivered and whether the government has met its obligations under the 2020 agreement.

Government defends acceptance

“The bonds are not foisted on the individual,” Mnangagwa said. “The fact that they have been paid, partially been paid in cash and the remainder in bonds, is acceptance.” His comments indicate that the government regards farmers who accepted the mixed payment structure as having agreed to the revised compensation terms.

The $508 million figure represents a fraction of the original $3.5 billion commitment, highlighting the scale of the outstanding obligation. For Zimbabwe, settling the compensation dispute remains tied to broader efforts to repair relations with investors and improve its prospects for returning to international capital markets after years of economic isolation.