South African courts provide clarity on agricultural land development

PDALA was intended to replace SALA in its entirety, save for existing applications submitted in terms of SALA or instances where SALA consents had already been issued. However, this has created some confusion surrounding how developers, municipalities and infrastructure planners should approach land classification for agricultural use, particularly for national infrastructure projects, going forward.

Last month two developments brought this issue into sharp relief. Firstly, the Supreme Court of Appeal delivered its judgment in Tridevco v Minister of Agriculture, which reaffirmed the broad definition of "agricultural land" under SALA.

The dispute centred on a property owned by Tridevco (Pty) Ltd (Tridevco) and Witfontein X16 Boerdery CC (Witfontein) which had been earmarked for mixed-use township development. The minister of agriculture, land reform and rural development refused the companies’ application to subdivide the property, arguing that the land was “high potential agricultural land” and did not qualify for exclusion under SALA’s exemptions from obtaining ministerial consent.

Tridevco and Witfontein argued that their land, located within the Ekurhuleni Urban Edge and zoned "undetermined" under the Peri-Urban Town Planning Scheme, should not be classified as agricultural. They sought a declarator to that effect or, alternatively, a review of the minister’s decision to refuse their subdivision application.

The majority of the SCA held that the land did qualify as agricultural. The key issue was the interpretation of section 1(a) of SALA, which excludes land under the jurisdiction of a health board and a Local Area Committee (LAC). The court found that both conditions must be met together for the exclusion to apply. Since no LAC had been established in the area, the land must be considered agricultural for the purposes of SALA.

While the court opted not to classify the land as “not agricultural”, it still found that the minister’s refusal of the subdivision application was procedurally flawed. The minister had failed to consult the Ekurhuleni Municipality or consider its Integrated Development Plan (IDP), which included the Urban Edge. As a result, the minister's decision was reviewed and set aside, and the matter referred back for reconsideration.

One judge disagreed with the majority’s interpretation of section 1(a), arguing that land under a health board alone should suffice for exclusion. This divergence in interpretation shows that the definition of “agricultural land” under SALA is still open to debate.

The SCA also said that the minister’s decision should be reviewed and ordered the municipality to pay 50% of Tridevco’s legal costs in bringing the appeal.

Commenting on the case, Nayna Cara, a commercial real estate specialist at Pinsent Masons, said: “The Tridevco case illustrates that even foundational definitions like "agricultural land" remain open to interpretation, creating uncertainty for developers.”

Just days after this judgment was handed down, a government gazette notice granted the National Transmission Company of South Africa (NTCSA) – a wholly owned subsidiary of Eskom – a conditional exemption from SALA for transmission infrastructure.

The notice declares the NTCSA a statutory body under SALA, granting it a conditional exemption from ministerial consent. However, it raises concerns over the potential impact of substation infrastructure on productive agricultural land and that no substation must be located in a so-called Protected Agricultural Area (PAA) “without [having] been subjected to its applications in terms of SALA".

While "PAA" is a defined term under PDALA, which is not yet operational, its use in the notice anticipates the minister’s future discretion to designate such areas once PDALA comes into force. It adds that, should any property owned by NTCSA be transferred into private ownership, the SALA exclusion will no longer apply.

Cara said the NTCSA exemption illustrates that national infrastructure projects must continue to navigate SALA’s requirements carefully. “These are not just technicalities – they are fundamental legal questions that affect how land is used, protected, and developed," she said. “As pressure on identifying usable land intensifies for projects, resolving classification and compliance issues early is essential.”

Although the enactment of PDALA is a significant legislative step towards protecting agricultural land and supporting its economic growth in South Africa, these developments indicate how SALA continues to affect land classification and regulation in the country, and, in turn, project timelines and compliance. "SALA may be an old statute, but it remains a critical part of the legal landscape for project developers in South Africa," said Cara.

Cara added that developers, together with their town planners and in liaising with municipalities, must be mindful of assessing land classification and SALA compliance early in project planning, particularly when re-zoning for infrastructure development.