(Delwyn Verasamy/M&G)
The signing of the Expropriation Act of 2024 has sparked intense debate, but beyond the political noise, it presents a real opportunity for South Africa to address long-standing issues of economic inefficiency and the underuse of land.
One of the most promising aspects of the law is its potential to repurpose derelict buildings, abandoned farms and disused mines, assets that currently contribute little to economic growth but could be transformed into productive enterprises.
South Africa has an estimated 6,100 abandoned mines, with about 2,322 classified as high-risk because of their environmental and safety hazards. These sites often become hotspots for illegal mining activities, leading to dangerous conditions and lost tax revenue.
The recent Stilfontein mine disaster, where a police siege resulted in the deaths of at least 78 illegal miners, highlighted the urgent need for stronger government intervention.
The Expropriation Act could empower the state to take ownership of such sites where the original owners are untraceable or have long since abandoned them.
If properly managed, these reclaimed mines could be rehabilitated for legal mining operations, converted into industrial sites, or even repurposed for renewable energy projects. For instance, countries such as Germany have successfully transformed old coal mines into solar farms, and similar initiatives in South Africa could contribute to energy security while creating jobs.
Another critical area for potential economic upliftment is agriculture. Across South Africa, vast tracts of farmland remain unused because of absentee landlords or ownership disputes.
Expropriating and redistributing this land to emerging farmers, cooperatives or agribusinesses could boost local food production and improve food security. Given South Africa’s reliance on food imports for certain products, bringing idle farmland into production could reduce costs for consumers while creating employment opportunities in rural areas.
In many South African cities, abandoned buildings have become hubs for crime, drug abuse and illegal occupation. Johannesburg and Pretoria, in particular, have numerous inner-city buildings that are structurally unsound and unoccupied. Under the Expropriation Act, municipalities could legally take ownership of these properties and repurpose them for social housing, commercial use or mixed-income developments.
This approach has been used successfully in other countries such as Brazil, where São Paulo’s government converted abandoned buildings into affordable housing. A similar initiative in South Africa could help alleviate the housing crisis while revitalising urban centres.
For decades, the South African economy has suffered from underused assets. By putting these assets back into productive use, the government could generate tax revenue, attract investment, and create employment opportunities.
Of course, successful implementation will require transparency, efficiency and a clear legal framework to prevent abuse. The key will be ensuring that expropriated assets are handed over to entities capable of managing them productively, whether private businesses, cooperatives or state agencies.
While much of the debate around the Expropriation Act has focused on its risks, its potential benefits cannot be ignored. With proper planning, this law could be a tool for economic revitalisation.
Yonela Faba is a PhD candidate in economics at the University of Cape Town with a background in banking, and financial policy.
