US Ambassador to South Africa Leo Brent Bozell III has warned that the country’s Expropriation Act could discourage investment and place further strain on the economy.
CapeTownEtc reported that Bozell made the comments during an interview with SABC News, where he said the issue remains one of Washington’s concerns in its relationship with South Africa.
US raises investment concerns
Bozell described expropriation without compensation as a “direct threat” to investment in South Africa.
He argued that investors could become hesitant to put money into property, factories or businesses if they believe those assets may later be expropriated without compensation.
According to CapeTownEtc, Bozell said the United States still wants the matter addressed as part of its “Five Asks” aimed at improving relations between the two countries.
He added that the issue has temporarily been removed from active negotiations while South African courts consider the constitutionality of the legislation.
Bozell said that if the courts allow the disputed provisions to stand, the US believes it could have a “chilling effect” on investment.
What the Expropriation Act says
The Expropriation Act 13 of 2024 was signed into law in January 2025. According to the South African Government, it creates a framework for expropriating property for a public purpose or in the public interest.
The Act also identifies certain circumstances where nil compensation may be considered just and equitable.
However, the government’s official legislation page still lists the Act’s commencement date as “to be proclaimed”, meaning an implementation date has not yet been formally brought into effect.
Tensions between South Africa and the US
Bozell also warned that Washington’s patience was running out over unresolved disputes with South Africa.
CapeTownEtc reported that he said the consequences of failing to address US concerns would “necessarily” be severe.
The comments come as land policy remains one of the issues affecting relations between Pretoria and Washington.
For now, Bozell says the United States has placed the expropriation issue on hold while the matter moves through South Africa’s courts.
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