The current funding model for disaster risk reduction within government and the private sector does not provide optimally for South Africa’s dynamic risk profile and diverse public financial management system. A number of challenges have emerged since 2005, when the funding mechanisms for disaster management were revised by the Financial and Fiscal Commission (the Commission). Firstly, the different spheres of government do not fully apply or adhere to current legislative, policy, institutional and funding mechanisms. Secondly, relief measures often take time to reach the victims or places affected by disaster because of lengthy bureaucratic processes for disbursing disaster funds. Thirdly, experience has shown that funding for disasters does not always adequately addressed the effects of a particular hazardous event or the cost incurred by provinces or municipalities. Finally, most municipalities and provinces do not make provision for risk-reduction funding in their planning and budgeting processes (Visser and Van Niekerk, 2009). The haphazard response to disaster creates perverse incentives. For example, communities expect compensation from government when a disaster occurs and so take minimal mitigating or preventative measures.

Policy Brief by the Financial and Fiscal Commission