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New Expropriation Bill: It’s not as transformative as some claim

South African President Cyril Ramaphosa signed the Expropriation Bill into law on Thursday, 23 January 2025 allowing the state to expropriate land for public use with no compensation in certain circumstances.
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The law officially replaces the apartheid-era Expropriation Act of 1975.

This follows a five-year process of public consultation and parliamentary debate, which at its height in September 2022, saw Patricia de Lille, former public works minister lauding the law as a critical tool for land reform and redress, a move that was opposed by, among others, the DA, IFP and FF Plus.

Public sentiment on the new bill, however, brings into question whether the bill can deliver on land reform with critics claiming that Ramaphosa has merely updated procedural law without addressing structural land inequality.

"Provisions for nil compensation are too limited, preserving the status quo. This is not transformative policy but procedural tidying," said Phemelo Maja, attorney and content creator for social-media platform, X.

"The Bill provides mechanisms for expropriation, including circumstances for compensation at nil value. But the criteria are restrictive: abandoned land, state-owned land with no productive use, or land held purely for speculation (Section 12). No carte blanche here. The bill doesn’t fundamentally alter land-ownership patterns."

Nil compensation not the norm

Furthermore, Maja described the Bill as "smoke and mirrors": "It starts the clock at 1913, ignoring colonial land theft pre-1913, and forces dispossessed people to negotiate with the occupiers of stolen land. Without fixing Section 25, it's just legal theatre."

Section 25 of the Constitution recognises expropriation as an essential mechanism for the state to acquire someone's property for a public purpose or in the public interest, subject to just and equitable compensation being paid.

"Section 25 already constrained radical redistribution, requiring compensation. The Bill inherits this logic, maintaining the status quo with procedural tweaks," Maja added.

Critically, the Bill retains “just and equitable compensation” as the default for most expropriation. This means market valuation (Section 12(1)) remains key. Far from radical, this is consistent with existing law. “Nil compensation” is exceptional, not the norm," he said.

Protection of private property rights

Meanwhile, Afriforum has set its intention to take the government to court over the Land Expropriation Act, as have the DA. Action SA is considering it. Legal challenges could involve contesting the constitutionality of the Expropriation Bill, and focusing on the interpretation of Section 25 of the Constitution, which guarantees property rights and requires compensation for expropriation.

The forum has called on SA's Minister of Public Works and Infrastructure Dean Macpherson, to refuse to countersign and implement the proclamation of the Expropriation Bill.

"Failure to do so will allow President Ramaphosa and the ANC to make a mockery of the Government of National Unity by co-opting other parties in the GNU, such as the DA and FF+, to enforce ANC policies," the forum said.

Machpherson has since vowed to protect SA's private property rights: "There will be no expropriation of private property without compensation on my watch.

"The guarantee of property rights under Section 25 of the Constitution is not up for debate and is non-negotiable."

About Katja Hamilton

Katja is the Finance, Property and Healthcare Editor at Bizcommunity.
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