Abstract
Expropriation is a right granted to States under international law; however this right does not guarantee States to abuse their power to unlawfully seize properties without following due process or paying the right compensation. In August 2018, the president of South Africa proposed a bill that would allow the government to expropriate land without compensation and this bill has attracted the attention of both scholars of international law and foreign investors. 
 
 With a qualitative approach and a cross sectional analysis of data, this article seeks to analyze the nature of this bill to determine whether it infringes on the principles and practice of international law, as well as the likely consequences that the bill could have on the global image of South Africa and foreign direct investment in the country. The research approach allowed the authors to analyze important literature while making inferences to cases of expropriation in different parts of the world and juxtaposing them with South Africa’s intended policy. 
 
 The article concludes that one of the main critical issues for determining the lawful nature of expropriation is that it should be accompanied by an appropriate, adequate, effective, and prompt compensation, and as such not only does this bill constitute to a breach of international law but it will also damage the economy by scaring foreign investors away. In addition, the State would be compelled to spend millions of the already limited resources of the country in defending itself against international lawsuits that will be filed by affected individuals. It is thus suggested that a much better approach for land reform should be adopted by the government in its quest for development.
Highlights
With a qualitative approach and a cross sectional analysis of data, this article seeks to analyze the nature of this bill to determine whether it infringes on the principles and practice of international law, as well as the likely consequences that the bill could have on the global image of South Africa and foreign direct investment in the country
The article concludes that one of the main critical issues for determining the lawful nature of expropriation is that it should be accompanied by an appropriate, adequate, effective, and prompt compensation, and as such does this bill constitute to a breach of international law but it will damage the economy by scaring foreign investors away
One can infer from the above that per international law and standards, every State has the right to expropriation but the expropriating State has some duties and responsibilities to fulfil in order to make the expropriation lawful and one of such important responsibility is that the State is obliged to pay compensation to the individual or organization whose property is been expropriated
Summary
The question of property ownership has become the core for the protection of aliens and international investment law, it has become a question of human right under international law. Any actions of expropriation and undue restrictions and seizure of property belonging to foreign investors as well as citizens and private individuals or corporations – being it tangible or intangible, without the appropriate, adequate, prompt, and effective compensation may have negative implications for the State in question. These will include negative implications for foreign investment and the State may have to face responsibility. The country has over the years embarked on series of land reform policies mostly with the aim taking land from the ‘white minority’ that are believed to have access to vast plots of land through the former apartheid system
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
