Zimbabwe has taken a historic step by beginning compensation payments to white farmers whose land was seized during the country’s controversial land reform programme more than two decades ago.
This move is widely seen as an effort to mend strained relations with Western nations and address a long-standing source of economic and diplomatic tension that has hamstrung the country’s fortunes since the turn of the millennium.
Drawing on the lessons and challenges of Zimbabwe’s land reform experience, SA’s own debate over land expropriation has unfolded in a context where policy-makers are keenly aware of the risks of repeating their northern neighbour’s economic and social turmoil. The ANC has been at pains to reassure investors and the international community that SA’s new expropriation laws will be implemented transparently and will not result in the kind of economic collapse witnessed in Zimbabwe.
However, the US government under President Donald Trump has publicly lambasted SA over these laws, alleging that they unfairly target white farmers. In response, ANC officials have dismissed Trump’s claims as misinformed and politically motivated. The dispute has strained diplomatic relations and heightened uncertainty about SA’s investment climate, underscoring the broader challenges of land reform in post-colonial societies.
The roots of Zimbabwe’s initiative lie in the radical land redistribution campaign launched in 2000 by then-president Robert Mugabe. The programme, aimed at correcting colonial era injustices, saw the forced transfer of nearly 4,000 white-owned commercial farms to black Zimbabweans. While the policy was intended to empower the black majority, its chaotic and often violent implementation led to widespread farm invasions, the collapse of commercial agriculture and a dramatic downturn in the national economy.
Before the land reform, agriculture was the backbone of Zimbabwe’s economy, employing about 70% of the population and accounting for up to 45% of export earnings. The sudden loss of experienced commercial farmers and the breakdown of productive infrastructure caused agricultural output to plummet.
Between 2000 and 2002 Zimbabwe’s GDP shrank by more than 20%, with annual contractions of 4.5% in 2000 and 7.5% in 2001. The international community, particularly Western countries, responded with targeted sanctions, further isolating Zimbabwe from global financial systems and deepening its economic crisis.
After years of economic hardship and diplomatic isolation President Emmerson Mnangagwa, who assumed office after Mugabe’s ouster in 2017, acknowledged the need for compensation as a vital step toward restoring international trust and attracting foreign investment. In 2020 the Zimbabwean government signed an agreement with former white farmers, pledging $3.5bn in compensation — not for the land itself, but for infrastructural improvements such as buildings, irrigation systems and dams. The government maintains that the land cannot be compensated for as it was originally seized from black Zimbabweans during colonial rule.
The first tranche of payments was announced in April 2025, with $3.1m distributed to 378 farmers, representing just 1% of the $311m allocated for the first batch of claims. The remainder of the compensation will be paid out over several years through US dollar-denominated Treasury bonds, a mechanism designed to provide more stability than Zimbabwe’s historically volatile local currency. Additionally, about $20mn has been set aside for foreign nationals whose farms were protected under bilateral investment treaties.
While the payments mark a significant milestone, doubts persist regarding the government’s ability to meet its long-term obligations given its history of hyperinflation and economic instability.
Despite these initial payments many former farmers remain dissatisfied with the process. Farmer groups have criticised the sums as “token” and argue that the lengthy timeline means some recipients may never see the full amount. Only a fraction of the estimated 4,000 affected white farmers have received any payment, and many have not agreed to the deal, retaining their title deeds and seeking further negotiations. At the same time, some black Zimbabweans question the use of public funds for compensation given the country’s ongoing fiscal constraints and pressing social needs.
However, the government views the compensation initiative as a crucial step toward economic recovery and reconciliation. Finance minister Mthuli Ncube has emphasised that fulfilling these commitments is essential for re-engaging with international lenders and unlocking access to debt restructuring and new investment. Experts believe progress on compensation could help rebuild trust with Western governments and international financial institutions, potentially paving the way for the lifting of sanctions.
The compensation process is being closely watched by the international community, which has made progress on this issue a key condition for normalising relations with Zimbabwe. While the payments mark a significant milestone, doubts persist regarding the government’s ability to meet its long-term obligations given its history of hyperinflation and economic instability.
As the first group of SA’s Afrikaner refugees adjusts to life in the US under Trump’s resettlement plan, the ANC should remain mindful that the effects of land reform would reach well beyond SA’s borders and endure long into the future.
• Kajee is a lecturer at Southern Utah University, a non-resident research fellow at the Korea Institute for Maritime Strategy and a researcher for the SeaLight maritime transparency initiative at Stanford University’s Gordian Knot Center for National Security Innovation.
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