Kgosientsho Ramokgopa
By Mpho Moloi
Minister of Electricity and Energy Kgosientsho Ramokgopa has strongly defended the South African government’s commitment to transformation and land reform, declaring it “irreversible” amid backlash over the recently enacted Expropriation Act. He accused critics of using the legislation as a “scarecrow” to undermine the economy and create instability.
Ramokgopa made these remarks during the State of the Nation Address (SONA) debate on Wednesday, 12 February 2025, responding to opposition parties and organisations that have fiercely opposed the Expropriation Act.
“They are detonating the nuclear options to ensure that they undermine the economy of this country so that there’s a groundswell of social discontent that will unseat this government,” he said.The minister’s comments come in the wake of international criticism, economic concerns, and legal challenges to the Expropriation Act, with opposition parties, business groups, and foreign governments weighing in on the controversial law.
Understanding the Expropriation Act
The Expropriation Act of 2025, signed into law by President Cyril Ramaphosa in January 2025, sets out the legal framework for the expropriation of property for public purposes or in the public interest. The legislation provides mechanisms for land reform, including the provision for nil compensation in specific cases, which has drawn both praise and criticism.
According to government sources, the Act aims to:
✅ Address historical land dispossession by facilitating land redistribution.
✅ Ensure fair compensation where necessary, while allowing expropriation without compensation in specific instances.
✅ Provide legal clarity and procedural guidelines for land expropriation.
Despite these assurances, critics argue that the Act threatens property rights and could deter investment, leading to economic uncertainty.
Political Reactions and Opposition Challenges
Domestic Opposition: DA and AfriForum’s Legal Battle
The Democratic Alliance (DA) has challenged the constitutionality of the Expropriation Act, arguing that it violates property rights and could destabilise the economy.
“We believe that several provisions of the Expropriation Act are irrational and unconstitutional. This law must be nullified before it causes irreversible damage to investor confidence,” said DA leader John Steenhuisen.AfriForum, a civil rights group known for opposing land expropriation without compensation, has accused the ANC government of jeopardising private property ownership. The organisation claims that the law could lead to large-scale land seizures, comparing it to Zimbabwe’s land redistribution policies that resulted in economic collapse.
“This is nothing more than a populist move to take land from rightful owners without compensation. It will not solve poverty or inequality—it will only create economic instability,” said Ernst Roets, head of policy at AfriForum.The group has already announced plans to take the matter to the Constitutional Court in a bid to have the law overturned.
International Backlash: Trump Cuts U.S. Aid to South Africa
The United States, under President Donald Trump, has halted financial aid to South Africa in response to the Expropriation Act. In an executive order issued last week, Trump claimed that the law violates human rights and undermines property protections, leading to a cut in U.S. development funds allocated to South Africa.
“The U.S. will not support any government that seizes land without fair compensation. We stand for the protection of property rights,” Trump said in a statement.South Africa’s Response to U.S. Sanctions
South Africa’s ambassador to the U.S., Nomaindia Mfeketo, urged calm, stating that the government would engage in diplomatic discussions to clarify the intent of the Expropriation Act.
“We should neither panic nor snub the U.S. over this decision. South Africa remains committed to engaging our partners on the principles of land reform and economic transformation,” said Mfeketo.Ramokgopa, in his speech, reiterated President Ramaphosa’s stance that South Africa would not be bullied by international pressure.
“The transformation project is indeed irreversible. We are on the correct path, comrade President. We will not be bullied,” he said.The South African government has indicated plans to embark on a diplomatic tour to explain the Expropriation Act and engage with global allies to prevent further economic fallout.
Economic and Investment Implications
Business Concerns Over Property Rights and Investment Climate
South African business leaders and economists have expressed concern that investor confidence may decline due to uncertainty surrounding the implementation of the Expropriation Act.
Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso warned that clarity and policy consistency are essential to prevent capital flight.
“Investors want certainty. If the government cannot provide clear guidelines on how expropriation without compensation will be implemented, we may see a slowdown in foreign direct investment,” she said.The South African Reserve Bank (SARB) has also cautioned that land reform policies must be carefully managed to avoid jeopardising the country’s credit rating and economic stability.
Infrastructure and Energy Plans Amidst Debate
Despite the controversy, Ramokgopa emphasised the government’s focus on infrastructure investment and economic growth. He stated that:
📌 R200 billion will be invested in energy projects to improve South Africa’s electricity supply.
📌 The government aims to unlock land for housing and industrial development through the Infrastructure Development Act.
📌 Plans are in place to attract foreign investment through public-private partnerships (PPPs).
“Our infrastructure drive is a game-changer. We are prioritising the expansion of renewable energy, water security, and digital transformation. South Africa is open for business, and we remain committed to economic development,” he said.🔴 Central News Special Edition | Issue 92 🔴 Download the Latest Print and E-Edition | Headline: Lamola Reaffirms Sovereignty Amid U.S. Criticism Over Land Reform Policies”
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