
A new era, or the same old fault lines?
Last Thursday, President Cyril Ramaphosa signed into law the much-debated Expropriation Bill (now the Expropriation Act, 2025). This legislative milestone marks the first update to the country’s expropriation framework since the apartheid-era Act of 1975. Unsurprisingly, given its history, the Act is already headed for legal and political controversy. Expropriation is the taking of privately owned property by government (the expropriating authority) for the public good in return for “just and equitable” compensation.
The Act has ignited debate across the political spectrum. The DA and Solidarity promise court challenges, while the EFF has branded the reform a “legislative cop-out”. DA Minister of Public Works and Infrastructure Dean Macpherson has stated there will be “no expropriation of private property on my watch,” sparking discord within the Cabinet.
Will the Expropriation Act right historical wrongs while upholding constitutional values, or is it an unconstitutional framework doomed to cause more problems than it solves? We examine the controversies, opportunities, and societal implications of the Expropriation Act.
Protecting property rights
For many South Africans, “expropriation” invokes fears of blanket land seizures. However, well-crafted expropriation laws can stabilise property rights by making state interventions more transparent and rule-bound. Countries like Germany and Canada have used the right of a government to expropriate private property for public use to encourage development while respecting individual rights.
Features of the new Act
The Act aims to align expropriation procedures with Section 25 of the Constitution, which requires “just and equitable” compensation. There are specific circumstances, such as abandoned or speculatively held land, where “nil compensation” may be just. Disputes can be referred to the courts for final determination. In principle, this ensures adherence to fair administrative procedures mandated by both the Promotion of Administrative Justice Act 3 of 2000 (PAJA) and the Constitution.
Potential problems with the Act
Despite these safeguards, top legal minds argue that certain sections—particularly Sections 7, 8, and 19—create procedural contradictions. Critics say these provisions create dual legal mechanisms, placing the administrative determination of “just and equitable” compensation in conflict with a court-driven process. The Act is intended to clarify expropriation but it could wind up further complicating our land reform agenda.
This is also the first significant test of the GNU. The ANC has been developing this legislation for the past 10 years, and is now dependent on DA support, but the DA is opposed to nil compensation. Beyond the DA, there is broad political resistance. In addition to the EFF’s dismissal, the Freedom Front Plus accuses the Act of overreach; Solidarity has concerns about business confidence and property rights; and COSATU backs the Act as a tool to expedite land reform without inflated payouts.
Possible benefits of the Act
If the Expropriation Act is implemented transparently and thoughtfully, it could facilitate land reform and accelerate transformation. The Act has the potential to activate idle assets. Large tracts of derelict or unused land could be repurposed for social housing and agricultural projects, revitalising local economies. A workable framework could attract socially conscious investors and encourage public–private partnerships. It could even strengthen Ubuntu, which holds that community wellbeing and individual prosperity are intertwined. A fair expropriation mechanism could reflect Ubuntu by balancing historical redress with individual property rights.
Key points for landowners, investors and communities
Property owners are understandably worried about the risk of arbitrary land seizure. It will hopefully reassure them to know that the Act ensures that expropriation serves a clear public purpose or interest. Owners can challenge decisions or seek mediation under the law, consistent with PAJA and constitutional requirements for fair administrative action. However, litigation costs could rise if there are disputes over the interpretation of “nil compensation”.
For prospective buyers and investors, a robust expropriation regime could reduce unpredictability. Investors keen on projects with social impact may benefit if underutilised land is made available, provided the courts uphold the Act in a clear manner. However, legal action threatened by various political parties may place new land deals on hold.
For communities, an effective expropriation process could aid restitution and support community-based agricultural projects and social housing, provided processes are consistent with the Constitution and PAJA. Civil society must remain vigilant to ensure nil compensation is not misused.
Creating hope for the future
The history of land ownership in South Africa is marked by dispossession, pain and a search for justice. The Expropriation Act 2025 has the potential to be a turning point for inclusive development, but it could also spark fresh legal and social conflict. The Act’s acceptance and effectiveness will depend on integrity of application and the robustness of the judicial system in its enforcement. The Act will undoubtedly be tested in the courts. We will be watching avidly.
If you have questions or concerns about the Expropriation Act
Simon Dippenaar & Associates, Inc. is a law firm of specialist eviction lawyers in Cape Town, Johannesburg and Durban. If you have concerns or questions about the Expropriation Act and how it might affect you or your property, contact Simon on 086 099 5146 or email sdippenaar@sdlaw.co.za
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