South Africa’s legal system faces a critical test as advocates push to ensure consent is actively verified, giving survivors a fairer chance at justice. Image: Stock.
(The Post News)– A landmark legal battle over South Africa’s first attempt at expropriation without compensation is headed for mediation this week, while the City of Ekurhuleni defends its decision to seize 34 hectares of privately owned land without paying anything. The municipality has expropriated land, alongside offering zero compensation; however, the owners demand a pay-out of R30 million.
Owners of the private piece of land in Driefontein, Boksburg, as well as the City of Ekurhuleni itself, have been obligated to enter into a court-directed mediation on Friday, the 31st of October, for the purpose of resolving the dispute at hand.
If it happens that discussions fail, the dispute is set to proceed to trial in February 2026 in the Gauteng High Court. The expropriation was carried out under Section 9(3) of the Housing Act, which clearly states, “A municipality may expropriate any land required for housing development.”
However, landowners—Business Venture Investment 900—have not challenged the expropriation itself, but rather the municipality’s offer of zero compensation. This company had purchased land from a related entity in 2005 for R1 million, a price described as a reflection of an internal transfer rather than the true market value. The company alleged that recent valuations estimated the property at more than R30 million.
Reason for Expropriating the Land
In a letter seen by Eye Witness News (EWN), Imogen Mashazi, former Ekhuruleni city manager, argued that the municipality’s offer of zero compensation is one that is justified for the following reasons:
The land has been unused for 30 years and is vacant; the land has not generated any form of commercial activity and was not purchased at market value.
Mashazi mentioned that the land will be used as a tool to initiate township and property development. Section 25(2) of the Constitution allows expropriation only for public purpose or the public interest.
The City of Ekhuruleni argues that both concepts apply and further stated in court papers that “the city expropriated the property to fulfill its statutory obligations to develop, among others, social housing projects.”
Zero Compensation Legal Basis
South Africa currently has no active law that is agreeable to land expropriation with zero compensation. The expropriation act of 2024, which agreed with zero compensation under certain conditions, has been passed down but is not in effect yet.
An Advanced Property Law lecturer at Stellenbosch University, Dr. Tanveer Jeewa, mentioned that the city appeared to be misinterpreting the law by arguing its offer is “just and equitable.” Dr. Jeewa said, “Until the Expropriation Act of 2024 commences, nil compensation has no statutory footing.”
Under the current law, compensation must meet the constitution’s “just and equitable” standard and not necessarily market value but not automatically zero. The City of Ekurhuleni argued compensation is unjustified because the land is unused.
Reaction From Political Parties
The Freedom Front leader, Corne Mulder, suggested and warned that a ruling supporting zero compensation could result in undermining the rights of property and the economy. Mulder stated, “Banks won’t issue loans or mortgages if the state can simply seize property.”
He said municipalities could take land “willy-nilly.” The African National Congress (ANC) in Ekurhuleni has taken the opposite stance.
Jongizizwe Dlabathi, Regional Secretary, mentioned that expropriation, whether with or without compensation, is a necessity in addressing historical land dispossession and that owners should not be compensated in this regard: “If the land was acquired through apartheid systems, why should the government of the day pay for that land?”
Dlabathi insisted the process was lawful and stated that the courts will determine whether legality and rationality were followed.
About the Author
