Contested compensation: the politics, economics and legal nuances of compensating white former commercial farmers in Zimbabwe

ABSTRACT In July 2020, the government of Zimbabwe and white former commercial farmers signed a Global Compensation Deed agreement of US$3.5 billion. Under this deal, and in line with Section 295 (3) of the constitution, white former farmers are ‘entitled to compensation from the State only for improvements that were on the land when it was acquired’. This article questions the political, financial and legal rationale of this agreement. First, it argues that the compensation deal is ultra vires since there is no enabling act of parliament to support it as required by the constitution. Consequently, this deal is tenuous and insidious. Second, Zimbabwe’s economic implosion and colossal foreign debt will make it difficult for international financial institutions to extend credit lines. Third, this deal reverses some land reform outcomes, thus raising political tensions. Fourth, these political tensions are swelling into resistance against the deal by war veterans and the opposition.