Business organisation Business Unity South Africa (Busa) CEO Khulekani Mathe says the Expropriation Act, in its present form, incorporates sufficient checks and balances to prevent the arbitrary expropriation of land without compensation.

Concerns that the signing of the Act into law by President Cyril Ramaphosa opens the door to land grabs are unwarranted, he adds.

“The Act stipulates that the State can only expropriate if it has failed to purchase the property on reasonable terms. It serves as a deadlock-breaking mechanism and should only be used as a last resort,” says industry body Agricultural Business Chamber of South Africa CEO Theo Botha.

The Act is not a shortcut for the State to acquire property, as the procedures the State must follow are significantly more burdensome than those for buying the property directly, he notes.

“Section 12(3), which includes the nil-compensation provision, understandably raises considerable anxiety, as we will only fully understand its impact once the courts have had the opportunity to interpret it.

“But, the wording of this clause does not assert that awarding nil compensation will necessarily be just and equitable; it merely states that it may be so.”

Botha represented Busa in the National Economic Development and Labour Council (Nedlac) negotiations about the legislation.

The President's signature came after a thorough consultation process that lasted more than 12 years.

Busa was an active participant in the consultations in Parliament and Nedlac, among others, the organisation emphasises.

"Like any piece of legislation, the Expropriation Act is not without imperfections and contains ambiguities that have justifiably raised concerns. We urge the business community to remain vigilant in monitoring the implementation of this Act, but as yet, there is no reason for alarm," says Mathe.

Across the world, States have powers of expropriation. Where a country’s government requires the property of a private person for a public purpose, and the owner refuses to sell, there must be a mechanism to acquire the property against the owner’s will, provided that due process is followed and compensation paid. There is no reason for South Africa to be an exception, he adds.

South Africa has sought to allay fears about land grabs, after US President Donald Trump at the weekend threatened to withdraw aid from the country following the enactment of the Act and in the face of alleged confiscation of land.