Worldview: Ramaphosa's Expropriation Act sparks global outcry and domestic divide over land reform

Key topics:Expropriation law permits land seizure without compensationTrump and DA condemn policy as unfair, destabilisingLegal experts say law targets abandoned, unused land.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Kerry Lanaghan.Listen to this story instead:.South African President Cyril Ramaphosa faces mounting political and diplomatic pressure after signing the controversial Expropriation Act into law. Although yet to be implemented, the law permits the government to seize certain privately owned land without compensating its owners. This has provoked opposition from local political groups, property owners, and US President Donald Trump, who claims the policy targets white farmers unfairly. Ramaphosa's government insists the law is designed to address the persistent racial imbalance in land ownership that dates back to apartheid. That compensation will still be the norm in most cases.Under the new law, expropriation without compensation (EWC) would be permitted only under limited conditions. Legal experts Bulelwa Mabasa and Thomas Karberg clarify that EWC would primarily apply to underutilised or abandoned land, including some urban areas, and is not intended to target productive agricultural land. Even then, compensation for buildings and resources on the land may still be owed.The Act also shifts from a “market value” standard to “just and equitable” compensation for expropriated land, even in cases where compensation is paid. According to legal interpretations, this change aligns with the South African Constitution but has drawn criticism from property owners and investors who fear financial loss and market instability.The government hopes the legislation will speed up land reform and unlock stalled land claims - over 88,000 remain unresolved. According to land expert Professor Ruth Hall, the law is intended to empower black South Africans who historically worked the land without ownership rights, often living as tenants on white-owned farms. However, Hall doubts the law will be implemented soon, citing the political fallout and international backlash, especially from the United States.Trump’s administration has reacted strongly. In February, he cut aid to South Africa and announced steep tariffs on South African goods, though these were temporarily paused. During an Oval Office meeting, Trump confronted Ramaphosa with debunked evidence of discrimination against white farmers, a move that drew criticism but intensified scrutiny of South Africa’s land policies.Domestically, the law has divided Ramaphosa’s governing coalition. The Democratic Alliance (DA), South Africa’s second-largest party, opposes the notion of “nil compensation” but supports “just and equitable” compensation adjudicated in court. Notably, DA member and Public Works Minister Dean Macpherson, responsible for implementing the Act, has defended the law, calling it an improvement on previous versions and necessary to curb system abuses. He cited examples such as inflated land demands hindering Eskom’s infrastructure projects and urban buildings abandoned by foreign owners.The South African Property Owners Association and other stakeholders have vowed to challenge the law, arguing that speculative landholding does not justify forfeiture without compensation. They predict the Act will face extensive court tests. Legal scholars remain divided: while some argue EWC is unconstitutional, others contend that the Constitution implicitly allows for “nil compensation” in specific scenarios.For now, the law remains in limbo. Ramaphosa has not set an implementation date, likely to avoid escalating tensions with the US amid ongoing trade negotiations. Meanwhile, the DA is pushing for a judicial review and constitutional challenge, warning that a full law repeal could provoke unpredictable political consequences. With rising populist pressure from groups like the Economic Freedom Fighters (EFF), who believe the law doesn’t go far enough, South Africa’s land reform debate is far from over - fuelled by historical injustice, economic inequality, and global scrutiny.(This article is a précis of a piece originally published in BBC and can be read in full here.)

Worldview: Ramaphosa's Expropriation Act sparks global outcry and domestic divide over land reform

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