A landmark legal battle over South Africa’s controversial and illegal policy of land expropriation without compensation is set to begin, centering on a multi-million-rand property in Ekurhuleni that has sat undeveloped for seven years after being seized by the municipality.
The case involves a 34-hectare portion of the Driefontein Farm, known as Portion 406. The City of Ekurhuleni expropriated the land in 2018, six years before President Cyril Ramaphosa signed the Expropriation Bill into law, for a price of zero rand. The stated intention was to build urgently needed social housing.
However, the city has not begun construction on a single house since the expropriation. According to a representative for the landowners, the owners were already in the process of applying for development rights for the land at the time it was taken. The land was valued at approximately R30 million in 2018, but a subsequent independent valuation has estimated its worth at closer to R64 million.
The matter is now headed to the Gauteng High Court, with a hearing scheduled for October 31st. The legal challenge argues that the City of Ekurhuleni did not negotiate in good faith. The case is seen as a critical test of how the expropriation policy will be implemented.
“We’re facing two cases of litigation: the one by the owners for compensation and another incorporating those facts,” said a spokesperson, indicating that this case could set a precedent for future expropriations.
In response to concerns surrounding the new law, Samuel Seeff, chairperson of the Seeff Property Group, sought to allay fears, stating that the act has been “blown out of proportion.” He emphasized that expropriation without compensation is permitted only under specific, narrow circumstances with strict checks and balances, including public consultation.
“The goal is a lawful and fair land reform process that promotes economic growth and builds investor confidence,” Seeff stated. He outlined that the act specifies scenarios where expropriation may apply, such as land held purely for speculation, and makes it clear that residential property is not affected.
Despite these assurances, watchdog groups remain vigilant. A spokesperson stated that his office would monitor developments closely, engage with political parties, and keep foreign trade partners, including the United States, updated.
Attempts to get comment from the City of Ekurhuleni were unsuccessful. The outcome of the court case will be closely watched by investors, landowners, policymakers and of course the Trump administration. It will be a key indicator of the application of South Africa’s dangerous and controversial land grab strategy.