Ekurhuleni Faces Landmark Legal Battle Over South Africa’s First Land Expropriation Without Compensation

A groundbreaking legal dispute over South Africa’s first attempt at land expropriation without compensation is set to take centre stage this week. The City of Ekurhuleni will defend its controversial move to seize 34 hectares of privately owned land in Driefontein, Boksburg, without offering a single rand in compensation.

The municipality and the landowners, Business Venture Investments 900, are scheduled to begin court-directed mediation on Friday, 31 October 2025, in a bid to resolve the matter. Should the talks collapse, the case will proceed to a full trial in the Gauteng High Court in February next year.

Ekurhuleni expropriated the land in 2019 under Section 9(3) of the Housing Act, which permits municipalities to expropriate land for housing developments. The City has offered nil compensation, while the owners are demanding R30 million, claiming the property’s market value far exceeds the token amount at which it was internally transferred in 2005.

City Defends “Nil Compensation” as Justifiable

According to a letter seen by EWN, former Ekurhuleni City Manager Imogen Mashazi argued that the municipality’s offer of zero compensation was warranted, citing that the land had remained vacant and unused for over three decades, generated no commercial activity, and was not originally purchased at market value.

Mashazi stated that the land is needed for township and property development projects aimed at addressing housing shortages. The City further maintains that the expropriation meets the requirements of Section 25(2) of the Constitution, which allows expropriation in the public interest or for public purposes.

In its court submissions, the municipality asserted, “The city expropriated the property to fulfil its statutory obligations to develop, among others, social housing projects.”

However, experts warn that the City may be overreaching. Dr Tanveer Jeewa, an Advanced Property Law lecturer at Stellenbosch University, said, “Until the Expropriation Act of 2024 commences, nil compensation has no statutory footing.” She noted that under existing law, compensation must be “just and equitable” — which does not automatically mean zero.

Political Parties Split Over Expropriation Dispute

The case has reignited fierce debate over property rights and land reform. Freedom Front Plus leader Corné Mulder cautioned that a ruling in favour of nil compensation could have far-reaching economic consequences.

“Banks won’t issue loans or mortgages if the state can simply seize property,” he said, adding that such a precedent could allow municipalities to “take land willy-nilly.”

In contrast, the ANC in Ekurhuleni has backed the City’s position. Regional secretary Jongizizwe Dlabathi argued that expropriation — with or without compensation — is necessary to redress historical land injustices.

YOU MAY ALSO LIKE: Three Foreign Nationals Arrested As Police Rescue 58 Ethiopian Trafficking Victims In Johannesburg Raid

“If the land was acquired through apartheid systems, why should the government of the day pay for that land?” he said.

Dlabathi insisted that the process was lawful, stressing that the courts would ultimately decide whether the municipality’s actions were rational and compliant with legal procedures.

---

For More, Follow SurgeZirc SA On  Facebook, X,  Instagram and Bluesky