Land expropriation without compensation started by the ANC in an important South African city

The ANC-led coalition government in Nelson Mandela Bay Metro began the process of expropriating private land without compensation.

On 8 June 2026, a Special Sitting of Council convened and approved the initiation of a land expropriation process without compensation.

The ANC said it was done in accordance with Section 25 of the Constitution, to facilitate the implementation of the Kleinskool Housing Project in Bethelsdorp.

The Kleinskool Housing Project is a subsidised housing development in the Bethelsdorp area of Nelson Mandela Bay.

The ANC explained that the council was unable to reach an agreement with the landowner of the Kleinskool Housing Project, prompting the expropriation process.

“The expropriation process was to ensure the continued development of housing opportunities for residents,” it said.

The ANC Nelson Mandela Region said that the matter was previously considered by the Mayoral Committee in May 2026 before being submitted to Council.

Opposition parties, particularly the Freedom Front Plus (VF Plus) and the Democratic Alliance (DA), have strongly opposed the developments.

They argue that the municipality failed to table a comprehensive land audit or provide concrete proof of thorough Deeds Office investigations.

As it pushed to launch Phase 2 of the Kleinskool Housing Project and issue title deeds to residents, it faced a legal problem because it did not own the underlying property.

To bypass this, the ANC-led coalition government in Nelson Mandela Bay moved to invoke expropriation processes.

The move was widely characterised as an attempt by the municipality to expropriate private land without compensation.

This did not deter the ANC-led coalition government, which celebrated the development as a victory for “land expropriation without compensation”.

Legal battle against expropriation without compensation

There is currently a legal battle against provisions of the Expropriation Act, which critics argue can lead to expropriation without compensation.

The Western Cape High Court is hearing the case brought by AfriForum and IRR Legal, with the Free Market Foundation’s Rule of Law Project joining as a friend of the court.

One of the contentious points is section 12(3) of the Expropriation Act, which purports to allow property to be expropriated for “nil compensation”.

AfriForum and IRR Legal argue that section 25 of the Constitution requires an amount of compensation for expropriation, and that nil is not an amount.

“Ordinary legislation cannot rewrite a constitutional standard that Parliament itself failed to change through constitutional amendment,” they said.

They also argue that section 12(3) is irrational, inconsistent with customary international law, and incompatible with the protection of private property.

David Ansara, chief executive of the Free Market Foundation, said that the case is about more than expropriation.

“It will test whether the government can sidestep the Constitution through legislation and whether property rights remain protected under South African law,” he said.

“The outcome will have implications for the rule of law, investment, and every South African who believes that constitutional limits on state power matter.”

Gabriel Crouse, the founding executive director at IRR Legal, said that the Expropriation Act threatens freedom and prosperity in South Africa.

“The challenged provisions expose owners to under-compensation in arbitrary circumstances, violating the property rights entrenched in the Bill of Rights,” he said.

“Land speculators, municipalities with investment property, and land reform beneficiaries fall within the ‘nil’ compensation provisions of the Act.”

Crouse said their objective is to remove the impugned provisions to prevent confusing legal surplusage and any real cases of under-compensation.