Ensuring that expropriation laws provide full, market-based compensation is critical for fairness, legal certainty, and the protection of investment in South Africa.

The debate over expropriation has placed the country’s future investment climate and social cohesion in the spotlight. For South Africa to attract investment and retain the trust of citizens, any expropriation of assets or capital by the state must be accompanied by market-based compensation for those who lose their property. Evidence from global best practice shows that when governments compensate at full market value, they protect rights, support economic confidence, and avoid costly litigation or skills flight.

Polling consistently shows that most South Africans do not support expropriation without compensation and believe that property rights are vital for economic security and growth. The principle of market-based compensation is widely recognised in international law and has formed the foundation of land reform and infrastructure projects in many successful economies. Failing to provide adequate compensation undermines both individual rights and the broader investment climate, discouraging both local and foreign investors.

History confirms that certainty and fairness are essential for sustainable development. By guaranteeing market-based compensation, South Africa can honour the need for redress while maintaining the rule of law, social trust, and economic stability. This approach ensures that those who lose assets to the state are not made worse off and that future generations have the confidence to invest, build businesses, and create jobs.

Denying market-based compensation risks eroding trust, sparking legal disputes, and driving away the very investment needed for transformation. Ensuring fair compensation is the best way to align national goals with constitutional values and long-term prosperity.