The Expropriation Act: A constitutionally mandated legal process to advance socio-economic development and land distribution

On June 19, 1913, black South Africans awoke to find themselves strangers in their own country. With the stroke of a pen, they were dispossessed and restricted from owning land through the 1913 Natives Land.

This catastrophic event forever changed life in South Africa. It resulted in the skewed distribution of land and deep-rooted inequality. In limiting land ownership to only a small percentage of the population, and deep racial segregation was fostered, leading to the apartheid government’s Group Areas Act in 1950.

This painful legacy continues to shape our present reality and has led to many people being trapped in a cycle of poverty and unemployment. To rectify this bitter legacy of dispossession and poverty, our country is working to level the playing field so that more citizens have access to economic opportunities, basic services and land.

Last month, President Cyril Ramaphosa signed into law the Expropriation Act of 2025 which replaces the 1975 Expropriation Act.  It sets out how organs of State through a constitutionally mandated legal process may expropriate land in the public interest and for public purposes to advance socioeconomic development and land distributive purposes.

This new legislation provides clear steps for expropriation including expropriation with compensation based on the principle of justice and equity. Contrary to a growing belief, the Expropriation Act is not a haphazard instrument to confiscate land. It incorporates several democratic considerations such as the rights of owners, the necessity for negotiations and the mediatory role of the courts to ensure that justice prevails.

Guided by the rule of law and the new legislation, government will ensure that we tackle this important national issue in a responsible and sustainable manner. There is no reason for fearmongering as our actions are guided by our Constitution which preserves private property rights.

It is therefore unfortunate that some have been ill-informed on the workings of the new law. In fact, in many countries across the world including the United States, a bastion of the free market economy, expropriation is used to advance public usage of land while ensuring the protection of rights of property owners.

It is in South Africa’s best interest to have successful businesses and a thriving commercial agricultural sector for our nation’s food security and export. South Africa remains open for business, and investments in agriculture and farming are welcomed and remain safe. We understand that the legal protection to own and control assets are crucial to investment and economic growth.

Moreover, it fosters a sense of personal security by allowing people to reap the benefits of their labour as well as leave a legacy for their future generation. Through the protection of property rights, we advance individual prosperity and a market-based economy that is at the heart of our nation’s economic growth plans.

There may, however, be instances where it is necessary for the government to intervene to advance the public interest such as in the delivery of much needed basic services or opening economic opportunities which necessitates the expropriation of property.

For instance, expropriation may occur where either land, assets, property or natural resource is required for projects that have economic or employment imperatives that will in turn contribute to socio-economic development of our nation. Such projects can include industrialisation, agricultural reform for food security or infrastructure development.

Importantly, the Constitution defines public interest also to include land reform and equitable access to natural resources, with an aim to redress past injustices of apartheid and colonialism. Therefore, the Expropriation Act also promotes redistribution in a lawful way that puts people first and facilitate socio-economic transformation and inclusive growth.

The new Act is modelled on international best practice and has specific safeguards to ensure the rights of property owners are affirmed. In practice, a property owner must first be notified of the State’s intention and reasons to acquire their property. The Act encourages negotiations among parties over the acquisition of property before resorting to expropriation.

Expropriation may not be exercised unless the State has without success attempted to reach an agreement for the acquisition on reasonable terms. Importantly, the property owner has the right to object to expropriation and to approach a court to review the State’s decision to expropriate.

In the instance of expropriation, our Constitution requires agreement on the amount of compensation between the owner and the State. In cases where there is no agreement, the courts as per the new Act have to make such determination. Expropriation without compensation can only occur under exceptional circumstances such as when the land is not utilised, when a building is dilapidated or when the property in question has been acquired or purchased through government subsidies.

The ascent of the Expropriation Act follows a five-year long process that entailed extensive public consultation and parliamentary deliberation before being passed as the law of the land. The process began in December 2019 when Cabinet discussed the Expropriation Bill and published it for public comments.

This set in motion several consultations including face-to-face engagements across the country, giving the public an equal opportunity to provide their submissions on the proposed bill, either verbally or in writing, ensuring that the public interest remains first and foremost in the process.

Thereafter, Cabinet approved the introduction of the Bill to the National Assembly, which comprised of all political party representatives, to ensure the unfolding of the parliamentary processes. The Bill was then referred to the National House of Traditional leaders and thereafter the National Council of provinces which also conducted extensive public consultations.

This transparent procedure enabled two-way engagement, whereby ordinary citizens were accurately informed about the process and were also empowered to make their voices heard. Following this process, in March 2024 both houses of Parliament adopted the Bill and approved it for ascension by the President.

As government, we believe that the Expropriation Act is a critical instrument to achieving meaningful participation of all citizens in our socio-economic development. It is an important vehicle to address historical injustices in accordance with the country’s Constitution and with respect for the human rights of all its people.

*Nomonde Mnukwa is the acting government spokesperson

** The views expressed do not necessarily reflect the views of IOL or Independent Media