The Expropriation Bill of 2025 has sparked significant concern over its potential impact on property rights, investor confidence, and economic stability. While it aims to address historical land injustices and promote development, critics worry about the inclusion of “nil compensation” in specific cases and the broad interpretation of “public interest,” which could lead to misuse. There are fears that uncertainty around property rights may deter private investment at a time when South Africa urgently needs economic growth. The success of the Bill hinges on its transparent and fair implementation to avoid long-term negative consequences. Anything that will have a negative impact on investor sentiment will have a direct impact on private sector investment in the country. This, as new project announcements exceeded R600bn in 2024 and President Ramaphosa’s continued investment drive to attract higher levels of private sector investment. Or, maybe there are some attractive parcels of land owned by SOE’s that can be better used for public sector infrastructure projects?
This report includes a brief overview of the 2025 Act, the major changes from the 1975 Act and a brief comparison to other countries that have similar expropriation laws.
