By Fredalette Uys
The presidency announced this afternoon that President Cyril Ramaphosa has signed the Expropriation Bill.
According to a statement by the presidency, the bill will repeal the Expropriation Act of 1975 and outline how state bodies may expropriate land in the public interest.
“The bill, which has undergone a five-year process of public consultation and parliamentary deliberation, brings expropriation legislation in line with the Constitution.”
The Expropriation Bill was signed into law by the National Assembly in March 2024 and the expectation was that the law would be signed by President Ramaphosa before the 2024 elections. Various parties and organisations had already indicated that they would fight the bill if it was signed by President Ramaphosa.
“All South Africans are threatened”
According to Bennie van Zyl, manager of TLU SA, it is a “dark day in South Africa” and the decision indicates a serious attack on the foundation of property rights, which threatens not only farmers, but all South Africans.
TLU SA has called on the government to consider the dangerous implications of the law and repeal it immediately. “This is not just an agricultural issue – it affects every citizen’s right to property and the future of our country. South Africa deserves better than policies that compromise the foundation of our economy and food production.”
“The government presents this law as a means to achieve transformation and that it is in the public interest, but in reality it will have far-reaching, negative consequences for food security, investor confidence and economic stability.”
The Institute for Poverty, Land and Agrian Studies (Plaas) welcomed the signing of the bill, but warned that it in itself does not bring any automatic improvement, change or urgency to address the inequality of land ownership.
“The question remains as to when and how the government will use its powers to acquire property, and in whose interest.”
According to Plaas, there are two major changes in the law:
- The government can expropriate from one owner to return or redistribute property to others, while the previous law only allowed the government to expropriate property for state ownership. “This is not a radical change, because this is exactly what the property clause of the Constitution provides for. However, it took 30 years for the government to take these steps.”
- Secondly, according to Plaas, it expressly provides for cases in which there should be no compensation, or limited compensation. So far, the government has used a “willing buyer, willing seller” approach and paid market price or higher for land. “The government does not have to do this. The law gives a few examples of cases where no or limited compensation should be paid. This is progress, but whether and when the government will use these provisions remains to be seen.”
“Definitions are vague”
According to Van Zyl, the government claims the law is in line with Article 25 of the Constitution, but its definitions of “just and equitable compensation”, as well as “public interest”, are vague and open to subjective interpretation.
“These grey areas allow for abuse, corruption and unfair practices, plunging property owners of all backgrounds into uncertainty.”
According to him, the legislation places further pressure on South African farming communities that are already struggling with challenges such as high costs, volatile markets and increasing rural crime. “The government is sending a dangerous message to private and international investors.”
When may this not occur?
According to Article 25 of the Constitution, expropriation is recognised as a necessary mechanism for the state to acquire someone’s property for a public purpose or in the public interest, subject to the payment of just and equitable compensation.
So far, the expropriation of property has been governed by the Expropriation Act of 1975, which predates the expropriation mechanism provided for in section 25(2) of the Constitution.
The bill signed by Ramaphosa describes how expropriation will be carried out and on what basis it will happen.
The bill will assist all state bodies, whether local, provincial or national authorities, to expropriate land for various reasons in the public interest.
The reasons include, among others, promoting inclusivity and access to natural resources.
According to the bill, expropriation may not be exercised unless the expropriating authority has been unsuccessful in reaching an agreement on reasonable terms with an owner or a person with property rights. This means that the expropriating authority is obliged to enter into negotiations with the owner of a property required for specific purposes.
This authority must also attempt to reach an agreement on the acquisition of the property before proceeding with expropriation, except when the right to temporarily use property is taken on an urgent basis in terms of a provision in the legislation.
The law also provides for disputes to be referred for mediation or the appropriate court.
