The Democratic Alliance (DA) has officially adopted a motion rejecting the "nil compensation" clause in the 2025 Expropriation Act, following a unanimous vote by its Federal Council this week. The party insists compensation must be “just and equitable”.
Source: Pixabay.
This follows a legal challenge the party filed in the Western Cape High Court on 7 February 2025, where, as part of the Government of National Unity, it seeks a ruling to declare the Act unconstitutional and nullify it in its entirety.
The DA contends that the Act undermines property rights enshrined in Section 25 of the Constitution.
It cautions that 'unlawful expropriation' is not the same as 'lawful nil compensation', and that conflating the two misrepresents what the Act permits. Equating these terms, the DA argues, creates legal uncertainty, erodes property rights, and undermines investor confidence. This, in turn, risks deterring economic development and slowing much-needed land reform.
Land-reform rift
President Cyril Ramaphosa signed the 2025 Expropriation Act into law on 23 January, 2025. The Act applies broadly to all types of property, including residential, commercial, agricultural, and industrial land and buildings, and permits land expropriation without compensation under specific conditions, such as when land is unused, abandoned, or acquired through state subsidies.
On 6 February 2025, in his State of the Nation (Sona) 2025 address President Cyril Ramaphosa highlighted how the Expropriation Bill, underpins the government’s urban housing strategy.
He said more underutilised state properties would be released for affordable housing development, and that government would work with provinces and metros to reclaim buildings that have been hijacked in the city centres so as to repurpose them for public use.
"Going forward, we are going to build more housing in our city centres and closer to work and business opportunities. We are redesigning our housing subsidies and directing more funding towards programmes that enable people to buy or rent a home in an area of their choice," the President said.
Mandates not met
That said, along with other coalition partners like the Inkatha Freedom Party (IFP) and the Freedom Front Plus (FF+), the DA has criticised the ANC for not adequately consulting them before enacting the law, and that the parliamentary process leading to its signing into law lacked proper provincial mandates.
The DA's official opposition of "the nil compensation" provision in the 2025 Expropriation Act comes as no surprise. Already on 24 January, 2025, Public Works and Infrastructure Minister Dean Macpherson, a member of the Democratic Alliance (DA), publicly opposed the newly signed Act.
In a post on X (formerly Twitter), he stated "As the Minister of Public Works and Infrastructure, there will be NO expropriation of private property without compensation on my watch. The guarantee of property rights under Section 25 of the Constitution is not up for debate and is non-negotiable."
This statement received backlash from ANC Deputy President Paul Mashatile who called for Macpherson's resignation. Mashatile asserted that ministers must implement government policies or step down.
Macpherson responded by stating that only the DA could decide on his resignation, reaffirming his stance on property rights.
Global tensions rise
Internationally, the 2025 Expropriation Act has attracted criticism. US President Donald Trump issued an executive order halting US aid to South Africa, citing concerns over the law's implications for property rights and alleged discrimination against white minorities.
More recently the issue of land reform and property rights resurfaced when President Cyril Ramaphosa met with former US President Donald Trump at the White House on 21 May, 2025.
The meeting grew tense as Trump presented a video alleging “white genocide” and accused the South African government of enacting laws that allowed land expropriation without compensation, disproportionately affecting white minorities. Ramaphosa firmly rebutted the claims, defending the reforms as constitutional, aimed at redress.
The South African government maintains that the 2025 Expropriation Act aims to address historical injustices and includes safeguards to prevent arbitrary expropriation.
ANC Secretary-General Fikile Mbalula has staunchly defended President Cyril Ramaphosa’s signing of the Expropriation Act, describing it as a crucial move to redress historical land injustices. He dismissed criticism from the DA and others, asserting the Act offers a lawful mechanism to correct land inequality and drive socio-economic transformation.
“Government must prioritise the implementation of the act to unlock opportunities in agriculture, human settlements, and industrial development," he said.
As of now, the DA's legal challenge to nullify the Expropriation Act is active in the Western Cape High Court. It has yet to deliver a verdict on the matter.
