Government can take land, buildings, and other assets through Expropriation Act

South Africa’s government confirmed that it could expropriate land, buildings, and other assets under the Expropriation Act. Even houses and businesses are not entirely safe.

In January 2025, President Cyril Ramaphosa signed the controversial Expropriation Bill into law, which sets out how state organs can expropriate land in the public interest.

The government claimed that the new bill aligns legislation on expropriation with Section 25 of the Constitution.

This section recognises expropriation as an essential mechanism for the state to acquire someone’s property for a public purpose or in the public interest.

The nil compensation clause received special attention. It mentions “instances where nil compensation may be just and equitable for expropriation in the public interest”.

“It may be just and equitable for nil compensation to be paid where land is expropriated in the public interest,” the bill states.

The Act lists examples of nil compensation, including “where the land is not being used.” However, it states that it is not limited to the circumstances provided 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 Act applies to land, buildings, and other assets, for legitimate public use,” it said.

It added that under the proposed Expropriation Bill, these assets may be expropriated in the public interest or for a public purpose.

“The Department of Public Works and Infrastructure, or any government body authorised by the department, has the sole right to expropriate,” it said.

Ramaphosa has also previously confirmed that the Expropriation Act allows state organs to take all types of properties.

He said the government can use South Africa’s new Expropriation Act to take abandoned buildings in cities’ central business districts without paying.

“These abandoned buildings, where the owners have run away, should be subjected to the law 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”.

Deputy President Paul Mashatile added that the Expropriation Act will help the government fast-track land reform and settle outstanding land claims.

This raised serious concerns about a repeat of Zimbabwe farm invasions, which devastated the country’s economy and financial system.

The government tries to calm fears about Expropriation Act

Many stakeholders, including political parties and community groups, strongly opposed the new Expropriation Act.

The Democratic Alliance declared a dispute within the government of national unity after Ramaphosa signed the Act into law.

President Trump said he would cut off all future funding to South Africa until a full investigation into taking land from certain people has been completed.

The government hit back, saying South Africa has constitutionally embedded values of respect for the rule of law, justice, fairness and equality.

It said expropriation is a legal process that will be handled fairly and with respect for people’s rights.

“It’s always essential that the process is transparent and that all affected parties are treated justly,” the government said.

It added that the state’s power is exercised with strict oversight and in accordance with the law, ensuring 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’s important to ensure that all concerns are heard and addressed constructively.”

Public Works and Infrastructure Minister Dean Macpherson said that no one in South Africa will “have their land confiscated”.

“The Expropriation Act sets out a clear legal framework under which expropriation may take place, always with due process and court oversight,” Macpherson said.

“I am committed to ensuring that this Act 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 the government taking any property and paying less than its market value.

He said that when the state can seize any fixed or movable property for less than its market value, it gravely weakens property rights.

The previous Act compensated owners whose property was expropriated based on market value and for financial loss.

“With the previous Act, property rights were secure because market values are an objective measure to judge compensation,” Cronje said.

However, the new Expropriation Act dilutes market value considerably. It adds other subjective factors, like national interest.

“Something like national interest can mean anything in the calculation on how much someone must be compensated for their property,” he said.

Under the new Expropriation Act, it is impossible to say how much a person will be paid if their property is expropriated.

“It is maddening that the discussion around the Expropriation Act is centred around land and nil compensation,” he said.

“The core problem and heart of the Expropriation Act is hardly understood across South Africa’s economy.”

Cronje said the Expropriation Act would, in practice, prevent South Africa from attracting the new investment it needs to raise 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 should hear him out.

Government explains the Expropriation Act