South Africa’s First Land Expropriation Without Compensation Case Sparks Tense Legal Showdown in Ekurhuleni

A groundbreaking legal battle is playing out in Ekurhuleni, where the municipality’s decision to seize privately owned land without paying a cent has set the stage for South Africa’s first real-world test of land expropriation without compensation.

The Battle Over 34 Hectares In Driefontein

At the heart of the dispute is a 34-hectare stretch of land in Driefontein, Boksburg. The City of Ekurhuleni expropriated the property back in 2019, claiming it needed the land for housing and township development. However, what makes this case historic is the municipality’s offer of nil (zero) compensation a first for South Africa.

The landowners, Business Venture Investments 900, are not challenging the expropriation itself but the lack of compensation. They argue that the land, valued at over R30 million, cannot be seized for free. The matter heads to court-directed mediation on 31 October 2025, with a High Court trial scheduled for February if talks fail.

Why The City Claims No Payment Is Needed

Former Ekurhuleni City Manager Imogen Mashazi defended the city’s stance in a letter to the landowners, saying that the land has been vacant and unused for more than 30 years and was not originally bought at market value.

She argued that since the property had not generated any commercial activity or development, it qualifies for expropriation without payment. The municipality maintains that it needs the land to meet its housing obligations and promote inclusive development.

Ekurhuleni cites Section 9(3) of the Housing Act, which empowers municipalities to expropriate land required for housing projects. It also leans on Section 25(2) of the Constitution, which allows land expropriation “for public purpose or in the public interest.”

The Legal Grey Zone

Legal experts say the city may be testing the boundaries of the law. Dr Tanveer Jeewa, a lecturer in Advanced Property Law at Stellenbosch University, noted that the Expropriation Act of 2024, which explicitly allows for nil compensation under certain conditions, has been passed but not yet implemented.

“Until the Expropriation Act of 2024 commences, nil compensation has no statutory footing,” said Jeewa. “The Constitution requires compensation that is ‘just and equitable,’ which doesn’t necessarily mean market value but it also doesn’t automatically mean zero.”

In short, South Africa has no active law currently permitting land to be taken without payment, making this case a potential constitutional milestone.

Political And Public Reactions

The case has reignited fierce debate across political and public lines.

Freedom Front Plus leader Corné Mulder warned that a ruling in favor of nil compensation could have devastating consequences for the economy and property rights. “Banks won’t issue loans or mortgages if the state can simply seize property,” he said, cautioning that it could open the door for municipalities to take land “willy-nilly.”

Meanwhile, the ANC in Ekurhuleni has backed the city’s move. Regional secretary Jongizizwe Dlabathi said that expropriation with or without compensation is essential to redress apartheid-era land dispossession. “If the land was acquired through apartheid systems, why should the government of the day pay for that land?” he asked.

A Test Of Law, Politics And Legacy

This case is more than a local property dispute. It’s a test of how far South Africa is willing to go in pursuing land reform without destabilizing the economy or violating constitutional principles.

For many South Africans, especially in townships waiting for housing, the case represents long-overdue justice. For others, it’s a warning sign that property rights one of the cornerstones of the country’s economy could be under threat.

As mediation begins in Ekurhuleni this week, all eyes will be on whether the courts see zero compensation as a fair price for land in the name of public good, or a step too far for a nation still balancing its past with its future.

{Source:EWN}

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