{"id":818840,"date":"2025-04-01T07:00:00","date_gmt":"2025-04-01T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=818840"},"modified":"2025-03-31T17:02:50","modified_gmt":"2025-03-31T15:02:50","slug":"government-can-take-land-buildings-and-other-assets-through-expropriation-act","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/818840\/government-can-take-land-buildings-and-other-assets-through-expropriation-act\/","title":{"rendered":"Government can take land, buildings, and other assets through Expropriation Act"},"content":{"rendered":"\n

South Africa\u2019s government confirmed that it could expropriate land, buildings, and other assets under the Expropriation Act. Even houses and businesses are not entirely safe.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

The government claimed that the new bill aligns legislation on expropriation with Section 25 of the Constitution.<\/p>\n\n\n\n

This section recognises expropriation as an essential mechanism for the state to acquire someone\u2019s property for a public purpose or in the public interest.<\/p>\n\n\n\n

The nil compensation clause received special attention. It mentions \u201cinstances where nil compensation may be just and equitable for expropriation in the public interest\u201d.<\/p>\n\n\n\n

\u201cIt may be just and equitable for nil compensation to be paid where land is expropriated in the public interest,\u201d the bill states.<\/p>\n\n\n\n

The Act lists examples of nil compensation, including \u201cwhere the land is not being used.\u201d However, it states that it is not limited to the circumstances provided in the Act.<\/p>\n\n\n\n

Simply put, the government can take property without paying for it if it makes a case that it is in the public interest.<\/p>\n\n\n\n

The government confirmed that expropriation does not only apply to land. \u201cThe Act applies to land, buildings, and other assets, for legitimate public use,\u201d it said.<\/p>\n\n\n\n

It added that under the proposed Expropriation Bill, these assets may be expropriated in the public interest or for a public purpose.<\/p>\n\n\n\n

\u201cThe Department of Public Works and Infrastructure, or any government body authorised by the department, has the sole right to expropriate,\u201d it said.<\/p>\n\n\n\n

Ramaphosa has also previously confirmed that the Expropriation Act allows state organs to take all types of properties.<\/p>\n\n\n\n

He said the government can use South Africa\u2019s new Expropriation Act to take abandoned buildings in cities\u2019 central business districts without paying.<\/p>\n\n\n\n

\u201cThese abandoned buildings, where the owners have run away, should be subjected to the law we have just passed, expropriation, even without compensation,\u201d he said.<\/p>\n\n\n\n

Although homes and businesses are protected, they are still at risk if \u201cthey meet specific criteria for public use\u201d.<\/p>\n\n\n\n

Deputy President Paul Mashatile added that the Expropriation Act will help the government fast-track land reform and settle outstanding land claims.<\/p>\n\n\n\n

This raised serious concerns about a repeat of Zimbabwe farm invasions, which devastated the country\u2019s economy and financial system.<\/p>\n\n\n\n

The government tries to calm fears about Expropriation Act<\/h2>\n\n\n\n
\"\"<\/a>
Public Works and Infrastructure Minister Dean Macpherson<\/figcaption><\/figure>\n\n\n\n

Many stakeholders, including political parties and community groups, strongly opposed the new Expropriation Act<\/a>.<\/p>\n\n\n\n

The Democratic Alliance declared a dispute within the government of national unity after Ramaphosa signed the Act into law.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

The government hit back, saying South Africa has constitutionally embedded values of respect for the rule of law, justice, fairness and equality.<\/p>\n\n\n\n

It said expropriation is a legal process that will be handled fairly and with respect for people’s rights.<\/p>\n\n\n\n

\u201cIt’s always essential that the process is transparent and that all affected parties are treated justly,\u201d the government said.<\/p>\n\n\n\n

It added that the state\u2019s power is exercised with strict oversight and in accordance with the law, ensuring that expropriation is only used in the public interest.<\/p>\n\n\n\n

\u201cOnly properties deemed to be in the public interest may be expropriated,\u201d the government said in an online discussion.<\/p>\n\n\n\n

\u201cThe goal should always be to ensure that expropriation serves the greater good, benefits society as a whole.\u201d<\/p>\n\n\n\n

\u201cThe goal is to create a fairer and more inclusive economy, but it’s important to ensure that all concerns are heard and addressed constructively.\u201d<\/p>\n\n\n\n

Public Works and Infrastructure Minister Dean Macpherson said<\/a> that no one in South Africa will “have their land confiscated”.<\/p>\n\n\n\n

\u201cThe Expropriation Act sets out a clear legal framework under which expropriation may take place, always with due process and court oversight,\u201d Macpherson said.<\/p>\n\n\n\n

\u201cI am committed to ensuring that this Act is constitutional and that there will be no arbitrary land grabs by the State in South Africa.\u201d<\/p>\n\n\n\n

Warning about the Expropriation Act<\/h2>\n\n\n\n
\"\"<\/a>
Political scientist Frans Cronje<\/figcaption><\/figure>\n\n\n\n

Political scientist Dr Frans Cronje warned<\/a> that the biggest threat of the Expropriation Act is the government taking any property and paying less than its market value.<\/p>\n\n\n\n

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

The previous Act compensated owners whose property was expropriated based on market value and for financial loss.<\/p>\n\n\n\n

\u201cWith the previous Act, property rights were secure because market values are an objective measure to judge compensation,\u201d Cronje said.<\/p>\n\n\n\n

However, the new Expropriation Act dilutes market value considerably. It adds other subjective factors, like national interest.<\/p>\n\n\n\n

\u201cSomething like national interest can mean anything in the calculation on how much someone must be compensated for their property,\u201d he said.<\/p>\n\n\n\n

Under the new Expropriation Act, it is impossible to say how much a person will be paid if their property is expropriated.<\/p>\n\n\n\n

\u201cIt is maddening that the discussion around the Expropriation Act is centred around land and nil compensation,\u201d he said.<\/p>\n\n\n\n

\u201cThe core problem and heart of the Expropriation Act is hardly understood across South Africa\u2019s economy.\u201d<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

This will prevent South Africa from increasing the rate of job creation to a point where the country can significantly reduce unemployment.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

\n\n\n\n

Government explains the Expropriation Act<\/h2>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n
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South Africa\u2019s government confirmed that it could expropriate land, buildings, and other assets under the Expropriation Act. Even houses and businesses are not entirely safe.<\/p>\n","protected":false},"author":10,"featured_media":812401,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[1293,21717,19719],"class_list":["post-818840","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-cyril-ramaphosa","tag-expropriation-act","tag-paul-mashatile"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/818840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=818840"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/818840\/revisions"}],"predecessor-version":[{"id":818932,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/818840\/revisions\/818932"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/812401"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=818840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=818840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=818840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}