Wrangle Over Expropriation Act Risks Sinking South Africa’s Government of National Unity

The Expropriation Act, 2024, signed by President Cyril Ramaphosa on 23 January 2025, is causing a significant strain on South Africa's Government of National Unity (GNU). This Act replaces the 1975 statute and provides a framework for the state to expropriate property for public purposes, with a requirement for agreement with owners before taking action. However, the Democratic Alliance (DA) has declared a formal dispute and is challenging the law in the Cape Town High Court, joining forces with AfriForum and IRR Legal.

The Act allows for nil compensation only in limited circumstances, such as unused or abandoned land, or when the state's investment exceeds the land's market value. In most cases, compensation remains the principle, and the state must attempt to reach agreement with owners first. However, the DA argues that the Act is unconstitutional and damaging to property rights, investor confidence, and the coalition's trust architecture.

Since 1994, only 8% of white-owned farmland has been redistributed to black citizens, according to a study by the Wilson Center, highlighting the slow pace of land reform in post-apartheid South Africa. The lack of seizures so far under the new law has not quelled the political storm, as smaller GNU parties like the Freedom Front Plus (FF+) and Inkatha Freedom Party (IFP) have also raised objections.

This row over the Act is seen as a proxy battle over whether the ANC can use the GNU machinery to advance its land-reform agenda, while the DA seeks to preserve market-friendly constraints on state power. The uncertainty caused by the legal dispute may deter investment and weaken confidence in South Africa's fragile economy. The dispute has also drawn international attention, with the United States President Donald Trump publicly criticizing South Africa over the law and its implications for property rights.