Expropriation Without Compensation constitutionality debacle and Foreign Investment Protection in South Africa
Expropriation Without Compensation constitutionality debacle and Foreign Investment Protection in South Africa
Author: Aghem Hanson Ekori
ISSN: 1996-2185
Affiliations: International Law Researcher and Postdoctoral Fellow,
Walter Sisulu University
Source: South African Mercantile Law Journal, Volume 37 Issue 2, 2025, p. 127 – 146
https://doi.org/10.47348/SAMLJ/v37/i2a1
Abstract
The issue of expropriation of property especially land without compensation and the amendment of s 25 of the Constitution has been topical, notably under the Government of National Unity (GNU). Many leaders, both local and international, have challenged the newly signed Expropriation Act into law. Accordingly, both local and foreign investors are protected mainly by the Constitution of the Republic, the Protection of Investment Act, and the Expropriation Act. Despite the debate on the issue of expropriation of property without compensation, laws in the country, particularly the Expropriation Act, ensure that properties are expropriated with just and equitable compensation, and this position is consistent with both s 25 of the Constitution and international law rules. However, there may be instances where property may be expropriated without compensation under the Expropriation Act, especially where the property has been abandoned. This article examines whether the international law rules governing foreign investment are consistent with the Protection of Investment Act, the Expropriation Act, and s 25 of the Constitution and relevant case law. It argues that the Expropriation Act and the international law rules for foreign investment are consistent with s 25 of the Constitution of the Republic of South Africa despite the disputes.