HARARE, April 11 (AGCNewsNet) – Zimbabwe’s government has made an initial payment of US$3.1 million to white farmers whose land was seized under a controversial land reform programme in the early 2000s, Finance Minister Mthuli Ncube announced this week.

The payment marks the first disbursement under a 2020 compensation agreement in which the state committed to paying US$3.5 billion for improvements made on expropriated farms. The disbursement covers 378 farms out of 740 that have been approved for compensation, accounting for just one percent of the US$311 million allocated for the first batch of payments.

“One of our commitments as we try to reform the Zimbabwe economy, to clear our arrears, is really to compensate the former farm owners who lost their farms,” Ncube said. “We have now begun to honour that agreement.”

The payment is part of a broader fundraising effort by the government, which has approached the market to raise US$307.9 million through Treasury Bills.

The land reform programme, initiated under the leadership of former President Robert Mugabe, resulted in the forced removal of more than 4,000 white farmers between 2000 and 2001. The goal of the programme was to address colonial-era land imbalances by redistributing fertile land to black Zimbabweans.

While the initiative was widely supported by many as a means to rectify historical injustices, it was marred by often-violent seizures and lacked structured support for new landowners. The result was a sharp decline in agricultural productivity, economic downturn, and strained relations with Western countries.

The government’s move to begin payments has been seen as a crucial step toward re-engaging international financial institutions and rebuilding investor confidence.

Observers say the road ahead remains long, with billions still owed and broader economic reforms needed to support sustainable recovery.

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