South Africa president signs bill redefining compensation requirements for government expropriated land

South African President Cyril Ramaphosa signed a controversial bill into law on Thursday, granting the government the authority to expropriate private land without compensation in specific circumstances.

The new legislation, which replaces the 1975 pre-democratic Expropriation Act, is the result of a five-year legislative effort. According to a presidential press release, the Expropriation Act of 2020 aims to align expropriation laws with the country’s Constitution.

The release explained that the law “repeals the Expropriation Act... to provide a common framework in line with the Constitution to guide the processes and procedures for expropriation of property by organs of state.”

Ramaphosa’s ruling party, the African National Congress (ANC), hailed the law as a significant step toward land reform and economic transformation. “This marks the first step toward addressing historical injustices,” the ANC stated.

However, the legislation has faced strong criticism from opposition parties, particularly the Democratic Alliance (DA). The DA argued that the law undermines critical limits on government power. “While Section 25 of the Constitution allows for land reform and restitution, we have serious concerns about both the process and substantive elements of this Act,” the DA said in a press release, adding that they are consulting legal experts to challenge the law.

Section 25 of the South African Constitution permits the government to expropriate land for public purposes or in the public interest, requiring compensation that is "just and equitable." The now-repealed 1975 Act mandated negotiations for compensation based on market value. Under the new law, the government is only required to provide "just and equitable" compensation, which, in some cases, may be zero. The Act specifies circumstances where no compensation might apply, such as when the land's market value is less than investment costs or when the property poses public health risks.

Despite the changes, Ramaphosa emphasized that negotiations with property owners would remain a priority before expropriation proceedings commence. “Expropriation may not proceed unless the expropriating authority has made genuine attempts to reach an agreement with the owner,” the presidential statement clarified.

Nearly three decades after the end of apartheid, South Africa continues to grapple with significant racial and economic inequalities. While the white minority retains the majority of wealth and land, the Black majority still faces challenges in accessing education and economic opportunities. The new law seeks to address these historical imbalances, though it has ignited heated debate over its implications for property rights and government authority.