Countless opinion pieces, briefing memos, and explainers have been drafted on the Expropriation Act since its assent on 20 December 2024, even despite the assent only having been made public in late January.
The Institute of Race Relations (IRR) recently unveiled its alternative legislation, the #RightToOwn Bill which directly takes on the most damaging parts of the Expropriation Act.
The passage of and assent to the Expropriation Act were a long time coming, following on the failure of Parliament to approve the 2021 expropriation without compensation (EWC) Section 25 amendment. The Democratic Alliance called the then-Expropriation Bill a “backdoor amendment”.
The assent to the Expropriation Act was, in part, to show that President Cyril Ramaphosa is still in control and maintains the ANC’s steady march toward the National Democratic Revolution. Allowing the Democratic Alliance and the Freedom Front Plus into the Government of National Unity was just like Lenin’s “strategic retreat”, opined Mmamaloko Kubayi.
The disrespect for the ANC’s coalition partners is evident in the fact that the President did not even do the Minister of Public Works, the DA’s Dean Macpherson, the courtesy of informing him that the controversial legislation had been signed into law.
A lot has been made about the precarious position farmers and property owners have been placed in, but as the IRR’s EWC FAQ explains, “property is anything that can be owned, so it can include a house, a painting, shares, gold coins, land, a patent right, a trademark, a business, a bicycle, pension savings, a record collection, a mine, etc. The state can expropriate any of those things, and anything else that can be owned, by using the Expropriation Act.”
The meaning of title deeds
Many panel discussions have devoted time to the meaning of “nil” compensation and the intention of the government to expropriate “in the public interest”, but that’s not what I want to focus on. President Cyril Ramaphosa, through his assent to the Expropriation Act, drew a solid red line through his July 2024 statement at the Opening of Parliament that “the provision of title deeds for land […] provides people with the assets they can use to improve their economic position.”
I wrote in July last year: “The President cannot argue that title deeds are an important component in helping people to become more prosperous and escape poverty while at the same time he is getting ready to sign the Expropriation Bill, which would, at a stroke, imperil property rights and could make title deeds worthless.”
There are an estimated 9.5 million black South Africans who lack secure title to their property. This is equivalent to double the population of New Zealand. Just like the millions of unemployed South Africans, these are individuals with hopes, dreams, and aspirations: people that need to be enabled by government with the freedom to own.
It is great to see that the cities of Cape Town and Tshwane celebrate handing over of title deeds to families across their metros.
It is not just a recognition of ownership on a piece of paper.
Secure title will now allow these families to build wealth by using their property as collateral for bank loans to start a business, if they want. It creates a cycle of prosperity for future generations and the possibility of a brighter future for families.
The #RightToOwn
The South African Government’s commitment to providing secure title to the population has been inconsistent, to say the least.
In 2018, in one of his early acts as President, Cyril Ramaphosa handed over title deeds to new homeowners in Kokstad in the Free State saying in a speech that “home ownership is a form of radical economic transformation” and that “home ownership can contribute to improved educational outcomes and reduce household poverty.”
The President has continued making similar public statements in recent years, speaking about the importance of title deeds for economic prosperity.
His assent to the Expropriation Act is a betrayal of all the families that he shook hands with, when handing over their title deeds.
How will these families – and others who lack title deeds ̶ be able to trust him when their homes and their chances of owning homes are under threat from the Act?
Delays
The Department of Human Settlements, primarily in charge of extending title to millions of South Africans, claims that the backlog of title deeds – estimated to be worth at least R242 billion in 2023 – is a result of “beneficiary-related issues” which include informal sales, tenancy and invasions, as well as the incomplete township establishment process that revolves around bureaucratic delays in municipal planning processes and associated funding challenges.
These two issues alone affect more than 450,000 households, according to 2024 data.
The demand for affordable housing outstrips supply.
The #RightToOwn Bill will directly address these issues by fast-tracking the issuance of title deeds, utilising public-private partnerships to improve infrastructure, and assisting municipalities to engage communities in fair and inclusive co-operation.
The legislation aims to improve access for low-income households by extending tax-funded housing vouchers. These will allow families to enter the housing market and by extension, the economy.
South Africans of all races deserve a solid foundation to create upward social mobility. Repealing the offending provisions of the Expropriation Act, along with allowing access to affordable alternative housing, will go a long way to ensuring their success. The IRR’s #RightToOwn Bill is far more than just a piece of legislation. It is a foundation for economic prosperity, growth and an alternative future that would make South Africa freer and more prosperous.
This is #WhatSACanBe.
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