U.S. Court Orders Zimbabwe to Pay $440 Million in Land Dispute With Swiss-German Family

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WASHINGTON, D.C., – The U.S. Court of Appeals for the D.C. Circuit has upheld an enforcement order for Zimbabwe to pay roughly $440 million in arbitral awards to a Swiss-German family and two forestry companies over a long-standing land dispute. The court ruled that Zimbabwe waived its sovereign immunity, paving the way for the claimants to seek compensation.

The case centres around Zimbabwe’s controversial land reform program, which began in the early 2000s and saw the government seize privately owned land, often belonging to white farmers, as part of a policy aimed at redistributing land to Black Zimbabweans.

The program led to significant economic consequences, including a drop in agricultural output and strained international relations. Over time, numerous international investors and property owners sought legal recourse, claiming unlawful expropriation.

The D.C. Circuit Court found that Zimbabwe had agreed to arbitration clauses in investment treaties and, by doing so, waived its right to sovereign immunity in disputes arising from the land seizures.

This ruling aligns with a lower court’s decision, asserting that Zimbabwe must honour its obligations under international arbitration awards.

The $440 million award includes compensation for property losses and damages owed to the Von Pezold family, Swiss-German nationals who owned large tracts of land, as well as to two forestry and sawmill companies. The arbitral tribunals had previously ruled in favour of the claimants, determining that Zimbabwe’s actions violated bilateral investment treaties.

Zimbabwe’s government has long argued that the land reform program was a corrective measure to address historical injustices rooted in colonialism, where the majority of fertile land was held by a small white minority. However, international courts have ruled that the seizures breached investment protections guaranteed to foreign nationals.

The ruling has far-reaching implications for Zimbabwe, which has struggled with economic challenges and is heavily reliant on international aid and loans. With limited foreign reserves and ongoing economic instability, Zimbabwe faces a difficult path to meet the financial obligations outlined by the court. The U.S. decision also serves as a warning to other countries that unilaterally revoke foreign investments, underscoring the power of international arbitration in holding states accountable.

This judgment comes at a time when Zimbabwe is seeking to re-engage with international partners, repair its global reputation, and attract foreign investment. However, legal experts warn that Zimbabwe’s continued non-compliance with international arbitration awards could hinder its efforts to secure international funding and investment.