Business tycoon Mr John Arnold Bredenkamp will now pay back $3,8 million he borrowed from a local entrepreneur, Mr Yaqub Ibrahim Mohammed, some 16 years ago.
Mr Bredenkamp had refused to repay the debt for years until a High Court early this year ordered him to pay.
He contested the High Court decision through an appeal to the Supreme Court.
However, when the parties appeared before the Supreme Court today, Bredenkamp made a U-turn and withdrew his appeal.
Deputy Chief Justice Luke Malaba, sitting with Justices Chinembiri Bhunu and Susan Mavangira, confirmed the withdrawal of the appeal to allow amicable settlement of the dispute.
“The appeal is hereby withdrawn for the reason that the parties have reached a settlement on the issues between them with the appellant having to pay the costs of the suit,” ruled Justice Malaba.