Zimbabwe Moves Forward with Investor Compensation Under BIPPAs

The Government of Zimbabwe has begun compensating investors shielded by Bilateral Investment Protection and Promotion Agreements (BIPPAs), a pivotal action in its debt resolution efforts. This step involves the disbursal of a $20 million allocation from the 2024 National Budget aimed at compensating BIPPA-protected farm owners impacted by the 2000 Land Reform Programme.

The initiative, endorsed by diplomats from Germany, the Netherlands, and Switzerland, is hailed as a significant advance toward achieving compensation and resolving debt arrears. Payments focus on claimants from nations with ratified BIPPAs pre-2000, encompassing 94 farms from Denmark, Germany, Netherlands, Switzerland, and former Yugoslavia.

This compensation aligns with Zimbabwe's legal framework and is a cornerstone of its debt clearance strategy, promoting investor trust and continuity in economic reform. A further $20 million is designated in the 2025 budget to sustain these efforts through a multi-year plan.