Expropriation without compensation: South African city’s plan takes a sudden new direction

The Ekurhuleni municipality has backtracked on a landmark expropriation-without-compensation case where it wanted to take a property without paying for it.

The City of Ekurhuleni, often called the East Rand, covers numerous cities, towns, and townships in Gauteng.

It includes major hubs like Alberton, Benoni, Boksburg, Edenvale, Germiston, Kempton Park, and Springs.

It also governs areas such as Tembisa, Katlehong, Thokoza, Vosloorus, and Daveyton, incorporating many former municipalities into a single large metropolitan area.

The 2019 expropriation of Portion 406 of the Farm Driefontein in Boksburg has become a landmark test case for land reform in South Africa.

It represents the first significant attempt by a municipality to expropriate land for no compensation to test the limits of Section 25 of the Constitution.

The City of Ekurhuleni issued the notice in February 2019 and took legal possession of the land in April 2019.

A 33.7-hectare vacant plot in Boksburg, Gauteng, also known as Farm Driefontein, belonged to Business Venture Investments 900 (BVI 900).

The city planned to develop a township with approximately 2,000 social housing units for low-income families on the land.

The owners argued that the property has high market value and that they were in the process of applying for development rights.

They pegged the value at R30 million, while some valuations put it as high as R64 million.

A court-ordered mediation began in October 2025, but it did not result in a final settlement. A trial was scheduled to start in the Gauteng High Court on 2 February 2026.

In late 2025, the City reportedly attempted to rescind its original resolution to expropriate the land, citing new concerns about sinkholes on the property.

Critics and the owners have labelled this a bad-faith dodge to avoid a definitive court ruling on the principle of zero compensation.

Sakeliga slates the City of Ekurhuleni

Sakeliga, which has been intimately involved in this case, slated the Ekurhuleni municipality, accusing it of escalating lawfare.

This was all part of avoiding paying compensation to the former landowner in the Driefontein expropriation without compensation case.

“Since September 2025, the city has jeopardised mediation and continued refusing to pay compensation for its expropriation of the property,” Sakeliga said.

“It is now trying to block the matter going to trial through additional protracted lawfare, hoping to avoid a court order forcing them to compensate the former owner.”

Sakeliga said that, after local and international scrutiny, the municipal council was advised that it would be a difficult task to convince the court to uphold a nil compensation award.

The Risk and Legal Services department pointed out that, should the trial continue, the court would likely order the municipality to pay compensation.

This is because the expropriation occurred under the Expropriation Act of 1975, which did not provide for nil compensation.

The new Expropriation Act, signed by President Cyril Ramaphosa in December 2024, expressly makes provision for expropriation without compensation.

Sakeliga said in December 2025 that the municipal council resolved to rescind its original expropriation decision seven years earlier.

“To legitimise this rescission, the municipal council also resolved to start a new court case to review its own initial expropriation decision,” it said.

“The city is effectively blocking the former owner from going to trial on compensation, likely delaying matters for several additional years.”

 Sakeliga said the Ekurhuleni municipality aims to have its own act of expropriation of Driefontein set aside.

“This is to sidestep an unfavourable judgement on the ‘nil compensation’ aspect, avoiding a financial blow to the municipality and a legal and political setback.”