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2025-04-02 at 14:45 #464677
Nat Quinn
KeymasterThe government can take land, buildings and other assets through the Expropriation Act WRITTEN BY Ronelle Snyders
This is strongly reminiscent of the drama that unfolded when the government launched the disarmament strategy years ago, where many people simply handed in valuable firearms.
South Africa’s government has confirmed that it can expropriate land, buildings and other assets under the Expropriation Act. Even homes and businesses are not completely safe.
Cyril Ramaphosa signed the controversial Expropriation Bill into law in January 2025, which outlines how organs of state can expropriate land in the public interest.
The government claimed that the new bill on expropriation was aligned with section 25 of the Constitution.
This article recognizes expropriation as a necessary mechanism for the state to acquire someone’s property for a public purpose or in the public interest.
The zero compensation clause received special attention. It mentions “cases where no compensation can be just and equitable for expropriation in the public interest”.
“It may be fair and equitable that no compensation is paid where land is expropriated in the public interest,” the bill states.
The Act lists examples of no compensation, including “where the land is not used.” However, it states that this is not limited to the circumstances provided for in the Act.
Simply put, the government can take property without paying for it if it makes a case that it is in the public interest.
The government confirmed that expropriation does not only apply to land. “The law applies to land, buildings and other assets, for legitimate public use,” it said.
It added that under the proposed Expropriation Bill, these assets can be expropriated in the public interest or for a public purpose.
“The Department of Public Works and Infrastructure, or any government body authorized by the Department, has the sole right to expropriate,” it said.
Ramaphosa also previously confirmed that the Expropriation Act allows organs of state to take all types of properties.
He said the government could use South Africa’s new Expropriation Act to take abandoned buildings in cities’ central business districts without paying for them.
“These abandoned buildings, where the owners have disappeared, must be subjected to the law that we have just passed, expropriation, even without compensation,” he said.
Although homes and businesses are protected, they are still at risk if “they meet specific criteria for public use”.
Paul Mashatile added that the Expropriation Act will help the government to accelerate land reform and settle outstanding land claims.
This has raised serious concerns about a repeat of Zimbabwe’s farm raids, which have devastated the country’s economy and financial system.
Government tries to calm fears over Expropriation Act
Many stakeholders, including political parties and community groups, expressed strong opposition to the new Expropriation Act and it has since become a major flashpoint in South Africa.
The Democratic Alliance declared a dispute within the government of national unity after Ramaphosa signed the law.
President Trump has said he will cut off all future funding to South Africa until a full investigation into the taking of land from certain people is completed.
The government hit back, saying South Africa has constitutionally embedded values of respect for the rule of law, justice, fairness and equality.
Expropriation is said to be a legal process that will be handled fairly and with respect for people’s rights.
“It is always essential that the process is transparent and that all affected parties are treated fairly,” the government said.
It added that the state’s power is exercised with strict supervision and in accordance with the law, to ensure that expropriation is only used in the public interest.
“Only properties deemed to be in the public interest may be expropriated,” the government said in an online discussion.
“The goal should always be to ensure that expropriation serves the greater good, benefits society as a whole.”
“The goal is to create a fairer and more inclusive economy, but it is important to ensure that all concerns are heard and addressed constructively.”
Public Works and Infrastructure Minister Dean Macpherson said no one in South Africa’s “land would be confiscated”.
“The Expropriation Act sets out a clear legal framework according to which expropriation may take place, always with due process and court supervision,” Macpherson said.
“I am committed to ensuring that this law is constitutional and that there will be no arbitrary land grabs by the state in South Africa.”
Warning about the Expropriation Act
Political scientist Dr Frans Cronje warned that the biggest threat of the Expropriation Act is that the government will take any property and pay less than its market value for such property.
He said that when the state can seize any real or movable property for less than its market value, it seriously weakens property rights.
The previous law compensated owners whose property was expropriated on the basis of market value and for financial loss.
“With the previous law, property rights were safe because market values are an objective criterion for judging compensation,” Cronje said.
However, the new Expropriation Act dilutes market value considerably. It adds other subjective factors, such as national interest.
“Something like national interest can mean anything in calculating how much someone should be compensated for their property,” he said.
In terms of the new Expropriation Act, it is impossible to say how much a person will be paid if their property is expropriated.
“It is frightening that the discussion around the Expropriation Act is centered around land and no compensation,” he said.
“The core problem and heart of the Expropriation Act is hardly understood in South Africa’s economy.”
Cronje said the Expropriation Act will in practice prevent South Africa from attracting the new investment needed to increase the ratio of fixed capital formation to GDP.
This will prevent South Africa from increasing the rate of job creation to a point where the country can significantly reduce unemployment.
Cronje said when the president of the United States warns a country that their stance on property rights and BEE will make them unsuccessful, they need to hear him.
Government explains the Expropriation Act
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