City of Ekurhuleni Expropriates R30 Million Property Without Compensation

Johannesburg – September 21, 2025

The City of Ekurhuleni has ignited national debate after expropriating a 34-hectare property in Driefontein, Boksburg, valued at around R30 million, without offering compensation to the private owner.

According to municipal officials, the land—owned by Business Venture Investments No. 900 (Pty) Ltd—had stood vacant for more than three decades and was being withheld for speculative purposes. The expropriation, carried out under provisions of the Housing Act and the Expropriation Act, has been justified as a measure taken “in the public interest” to tackle pressing social housing shortages in the metro.

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Legal Battle Looms

The former owner is challenging the move in court. Mediation proceedings are scheduled for October 2025, while a full 18-day trial has been set for February 2026. Legal experts say the case is likely to become a landmark test of South Africa’s constitutional limits on expropriation without compensation (EWC). “This case could clarify the extent of municipal powers and shape the future of property rights in South Africa,” said one property law analyst.

Divided Reactions

The expropriation has drawn sharply contrasting responses:

• Critics argue the decision undermines investor confidence and threatens the security of private property rights. They warn it could open the door to arbitrary municipal actions that discourage development and capital investment.
• Supporters, however, insist the move addresses long-standing inequalities and prioritises public housing over speculative landholding. “This is about redressing past injustices and ensuring land serves the people, not just profit,” said a housing activist.

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National Implications

The outcome of this legal showdown could have sweeping consequences for municipalities, landowners, and the property sector. If upheld, Ekurhuleni’s decision may embolden other cities to pursue similar expropriations to unlock land for development.

Conversely, if overturned, the case could reinforce constitutional protections for property owners, curbing the scope of expropriation without compensation. As the trial approaches, all eyes are on Boksburg, where a 34-hectare vacant plot may soon reshape the national debate over land reform, housing, and investor confidence in South Africa’s economy.