LETTER: What Peter Bruce gets wrong about the Expropriation Act - Business Day

In his otherwise excellent column Peter Bruce seems to suffer from doublethink when he says of the Expropriation Act that while it is “relatively benign, it manifestly opens the way for abuse in the future by bad actors” (“Musk living proof BEE bars SA growth”, February 6).

It is hard to argue that a law is benign if in the hands of the wrong people it could be used for nefarious purposes. A law is either benign or it’s not. As the lament over Jacob Zuma’s presidency goes, the SA constitution grants responsibilities and powers to the republic’s president with a Mandela in mind, rather than a Zuma. The same risks apply to laws.

Even if one believes the ANC would not use the worst elements of the law, there is no guarantee the ANC will not cave to its worst instincts in future or allow itself to be co-opted by the likes of MK, should the current government of national unity collapse. In such a scenario the Expropriation Act could easily be misused.

In addition, Bruce notes that “no-one here is going to take your house away”. Here he is probably correct; even at the height of the Zimbabwean land grabs nobody’s house in Harare or Bulawayo was confiscated. However, the economic crisis associated with the Zimbabwean government’s own expropriation without compensation programme saw the value of those houses tumble.

This would happen in SA too if properties were expropriated without (or with “nil”) compensation. It would not need to happen on the scale of the Zimbabwean land grabs. If only a handful of properties were taken this would deal a devastating blow to the SA investment case, prompting those able to take their money out of the country to do so, with all the knock-on effects that would entail.

Some will argue that it is only the privileged who will be affected. This is manifestly untrue. In countries where economies have collapsed, such as Zimbabwe or Venezuela, it is only those with significant resources and influence who can protect themselves from these consequences. People with fewer means suffer the most when economies are destroyed.

The Expropriation Act is dangerous legislation, and it must be amended to ensure that property rights are respected and the spectre of a government being able to take your property without paying for it is completely exorcised.

Marius Roodt,
Institute of Race Relations

https://www.businesslive.co.za/bd/opinion/letters/2025-02-11-letter-what-peter-bruce-gets-wrong-about-the-expropriation-act/