Fight against expropriation without compensation in South Africa

AfriForum has launched a legal challenge to the Expropriation Act, which is heard in the Western Cape High Court this week.

This challenge concerns the new Act’s provision enabling expropriation without compensation, which many argue should be declared unconstitutional.

The battle dates back to January 2025, when President Cyril Ramaphosa signed the Expropriation Act 13 of 2024 into law, replacing the Expropriation Act of 1975.

The Act is designed to align South Africa’s expropriation framework with Section 25, also known as the property clause, of the 1996 Constitution.

Ramaphosa said that the new law would assist state organs, including local, provincial, and national authorities, in expropriating land in the public interest.

The new Expropriation Act also separates public purpose, such as roads, schools, and hospitals, from public interest, such as land reform and equitable access to resources.

Critics have warned that the Act is enabling expropriation without compensation by allowing just and equitable compensation to be nil.

They have also said that the new Expropriation Act erodes property rights, which deters investment and harms the economy.

Renowned economist Dawie Roodt said that there was adequate legislation in place to expropriate land for purposes such as building a road or a train track.

“The new Expropriation Act, with a nil compensation clause, gives South African politicians the right to steal people’s property,” he said.

“The term expropriation is just another term for theft. This is what the state does when it takes people’s property.”

Former Shoprite CEO Whitey Basson also criticised the new Expropriation Act, saying it runs counter to basic economic principles.

“Expropriation without compensation would be the most foolish thing in the world because it goes against global economic logic. People don’t realise that,” he said.

AfriForum challenges the Expropriation Act

AfriForum’s legal challenge against certain sections of the Expropriation Act will be heard in the Western Cape High Court next week.

AfriForum CEO Kallie Kriel said that this legal challenge is in the interests of landowners and everyone in the country.

He argued that the application of the Expropriation Act in its current form can have far-reaching consequences.

“A landowner’s property can be expropriated without compensation before a court has determined the validity of the expropriation and the expropriation amount,” he said.

A landowner will then have to fight in the courts at their own expense for years to challenge the expropriation.

“Most landowners will not have the funds to get involved in a drawn-out court battle against the state, which litigates with taxpayers’ money,” he said.

AfriForum argues that sections 12(3), 12(4), and 19(8) of the Expropriation Act should be struck out and that section 19(2) should be amended.

• Sections 12(3) and 12(4) are, according to AfriForum, aimed at making expropriation without compensation possible.

• Section 12(3) of the Act lists examples of expropriation where no compensation applies. The words ‘including, but not limited to’ are left open on the cases in which expropriation can be applied.

• Sections 19(2) and 19(3) are in conflict with the Constitution, because they make it possible to expropriate land before a compensation amount has been agreed upon or a court has ruled on it.

AfriForum contends that these points are unconstitutional and allow municipalities to invent reasons for expropriation without compensation.