2 November 2023
By: Amelia Genis
A total of R1,6 billion has been made available in the medium-term budget framework for disaster relief.
Enoch Godongwana, Minister of Finance, announced on 1 November that the Treasury is making an additional allocation for “unforeseen and unavoidable” events in the current fiscal year.
The allocation includes provisions for the repair of flood damage in various provinces.
Strategy to finance disaster risks
The government is developing a financing strategy for disaster risks. It is expected to help address issues related to natural disasters.
The strategy is in response to “gaps in the financing and utilisation” of aid designated for natural disasters. Relying too much on budget reallocation in such cases has been identified as a further problem.
The policy statement of the medium-term budget framework (MTBF) says the National Treasury is analysing policies to enhance South Africa’s resilience during disasters by reducing risks and ensuring efficient allocation of resources.
“The strategy follows a multi-layered risk approach…” and provides for various financing instruments based on the occurrence and severity of “shocks”.
A draft document is expected to be ready during the 2024-25 fiscal year.
In its efforts to make South Africa more resilient to climate change, the National Treasury is developing a system to incorporate climate considerations into all financial management processes. The process is not yet completed.
