South Africa’s Expropriation Act: "The Rule of Law Must be Upheld," Expert Says

• The newly introduced Expropriation Act has sparked major concern among many South Africans since it was signed into law on 23 January 2025
• The new law clears the way for land expropriation without compensation, provided it is deemed "just, equitable, and in the public interest"
• Briefly News spoke to Peter Setou, the Chief Executive of Vumelana Advisory Fund, to shed some light on the productive use of restituted land

President Cyril Ramaphosa’s signing of the Expropriation Act has set off a firestorm of debate in South Africa and even sparked unexpected diplomatic tensions with the United States.

The Expropriation Act replaced the apartheid-era Expropriation Act of 1975. The new law paves the way for land expropriation without compensation, provided it is deemed "just, equitable, and in the public interest."

Many had hoped the president would shed light on the law’s implications during his State of the Nation (SONA) address, but silence prevailed. Now, uncertainty lingers, and speculation is running wild.

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Finalising land claims

One of the key steps in ensuring that restituted land is used productively is the need for comprehensive assessments before land claims are finalised.

According to Peter Setou, the Chief Executive of Vumelana Advisory Fund, land transfer must only occur once a clear plan for land utilisation and community support is in place. This requires the involvement of skilled transaction advisors who can guide both the government and the communities in developing sustainable, workable plans.

Setou is the Chief Executive Officer of Vumelana Advisory Fund a non-profit organisation that was established in 2012 to help communities in the land reform programme to put their land to productive use through its Community Private Partnership (CPP) model.

Setou stresses the importance of pre-transfer support.

"There is a need to increase resources earmarked for supporting land reform beneficiaries," he said.

He advocates for partnerships with private-sector players, who bring critical skills, access to finance, and markets. But, he points out that such partnerships don't naturally materialise.

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"They need to be facilitated by experienced advisors who can ensure the arrangements are viable and beneficial for all involved," he explained.

Setou stated that the government has a responsibility to take the lead in assuring the private sector of its support of their involvement in land reform projects.

"We need to manage expectations, share good stories and replicate these in order to give people hope and, most importantly, condemn illegal activities and take action where required.

"The rule of law must be upheld as this will give confidence to the private sector that their rights will be safeguarded. Government must actively support land owning entities and ensure that they are properly run and that there is sound corporate governance."

Vumelana is a non-profit public benefit organization founded in 2012 to support communities acquiring land through the Land Reform Programme by fostering partnerships that create jobs, increase income, develop communities, and facilitate skills transfer.

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Looking at the challenges

Access to finance remains one of the most significant challenges facing land reform beneficiaries. Setou proposed the creation of a comprehensive funding program for post-settlement support.

This program would combine public funding from institutions like the Land Bank with private sector resources and expertise.

The role of traditional leaders

Setou also underscores the importance of including traditional leaders and local communities in the land reform decision-making process. Strengthening tenure rights for people living on communal land is a key starting point.

By enabling individuals to use land as collateral, Setou argues, they will gain better access to credit, which will improve their bargaining position and attract private sector partners into the land reform process.

3 more stories on the Expropriation bill

• Addressing the misconceptions about the Expropriation Bill and providing clarity on its impact.
• Advantages and disadvantages of land expropriation without compensation.
• Several political parties, including the Economic Freedom Fighters, the Democratic Alliance, and the MK Party, opposed the Expropriation Bill being signed into law.

Source: Briefly News