Tag: Expropriation Bill

From 1995 to 2015, informal settlements increased by 650% and the current housing backlog has risen to 2.6 million houses. President Cyril Ramaphosa claims that the Expropriation Bill allows the government to 'expropriate land for public use, for use of our people'.

Historical land dispossession has handicapped South Africa’s economic development, particularly of small businesses and small-scale agriculture. This, combined with continued restrictions on subdivision, lack of secure title, and threats to constitutional property rights, impede rapid land reform and economic growth.

The passing of legislation is a complex process and often a lengthy one. There are many checks and balances before a Bill becomes an Act of Parliament. Each bill is debated in detail and, if necessary, amended. If there is much public interest in a bill, public hearings may be organised to allow interested parties to make written comments and sometimes make oral representations on the provisions of the Bill.

The 1975 Expropriation Act authorises the Minister of Public Works to expropriate property for public purposes, and provides for the payment of compensation to the dispossessed owner, not exceeding the property’s market price, determined either by agreement between government and the owner, or by a court.

South Africa’s economic recovery relies to a large extent on creating a more enabling business environment and putting the right structural economic reforms in place. The country needs to prioritise those reforms that will deliver results both in the short and long term and put the ruling party’s tendency to revert to ideological thinking aside in the interests of rescuing the economy.

The recent press reports of the Venezuelan government relaxing its controls over the economy is heartening. This comes after the government of Zimbabwe also in recent years signalled its intention to open up for business and set right the disaster of Mugabe-era land grabs. South Africa would do well to take heed of this trend away from socialism toward freedom.

The land reform debate over the last few years in South Africa can at best be described as controversial, political and mostly emotional, more specifically so in the context of expropriation. From the outset, it should be noted that the current Expropriation Act, 1975 (the 1975 Act) is completely outdated and predates the Constitution and the South African expropriation laws were in dire need of being overhauled.

South Africa’s flirtation with the idea that government should be allowed to expropriate private property without being legally required to compensate owners for it stands in stark contrast to the constitutional democracy we chose 26 years ago and is already doing great damage to the economy.