R1.2 Billion Disaster Grant Announced to Aid Flood-Hit Municipalities

In response to the catastrophic snowfall and flooding that ravaged parts of South Africa earlier this year, Minister of Cooperative Governance and Traditional Affairs (CoGTA), Velenkosini Hlabisa, has announced the allocation of a R1.2 billion Disaster Recovery Grant. The funding is targeted at municipalities across KwaZulu-Natal, Free State, and the severely impacted Eastern Cape, marking a critical intervention to aid infrastructure rehabilitation and community recovery.

A Nation Responds to Devastation

The announcement follows the June 2025 natural disaster, which left communities in turmoil, claiming 107 lives and causing R6.3 billion in infrastructure damage. The Eastern Cape bore the brunt of the destruction, particularly in districts like Nelson Mandela Bay, Chris Hani, and O.R. Tambo, where flooding decimated homes, roads, and vital public services.

A tragic 103 lives were lost in the Eastern Cape alone, with O.R. Tambo District recording the highest number of fatalities at 79, followed by Amathole District with 10, and smaller yet significant losses in Alfred Nzo, Chris Hani, Joe Gqabi, and Sarah Baartman districts.

Funding Breakdown: Eastern Cape Gets Largest Share

Recognising the urgent need for recovery, Minister Hlabisa confirmed that the Eastern Cape will receive the lion’s share of the relief package:

• R50 million to be disbursed by the end of July,

• An additional R504 million scheduled for release on 28 August 2025.

Key allocations include:

• R30 million for O.R. Tambo District Municipality

• R20 million for Amathole District Municipality

The Minister emphasised that these allocations are designed to kickstart recovery projects, ranging from infrastructure rebuilding to the restoration of essential services.

Phased Disbursement Plan for National Impact

The R1.2 billion fund will be disbursed through a phased approach:

• 11 July: R151.3 million in provincial response grants

• 18 July: R395 million in municipal response grants

• 28 August: Final tranche of R708.9 million, with the majority directed to Eastern Cape

This staggered funding strategy allows municipalities time to initiate project planning while promoting oversight and efficiency.

Accountability and Oversight: No Room for Mismanagement

Minister Hlabisa used the announcement to stress accountability and transparency. Municipalities receiving funds are required to:

• Adhere to financial disclosure protocols

• Use standardised reporting templates

• Submit detailed reports on past fund usage

“Failure to report on the use of previous disaster relief allocations will result in future funds being withheld,” warned the Minister. “If there is no accountability, money will not be released. It will be as simple as that.”

To this end, the National Disaster Management Centre (NDMC) will convene a joint oversight meeting involving Premiers, MECs, and Mayors, with the objective of enforcing rigorous transparency standards.

Technical Oversight and Quality Control

In addition to financial oversight, technical teams have been deployed to verify infrastructure damage, ensuring accurate needs assessments. The Minister highlighted recurring concerns such as:

• Poor infrastructure planning

• Substandard workmanship

• Diversion of funds from intended uses

To address these issues, the NDMC is collaborating with:

• The Municipal Infrastructure Support Agency (MISA)

• Sector departments across water, housing, and public works

This multi-agency approach is focused not merely on rebuilding, but on “building back better,” by ensuring structural integrity, resilience to future disasters, and long-term sustainability.

A Vision for Resilient Communities

Minister Hlabisa reiterated the government's commitment to restoring not just infrastructure, but hope and dignity to affected communities. He acknowledged the frustrations residents face in the aftermath of disasters and assured them that the relief plan aims to address the immediate and long-term needs of devastated areas.

He also warned against allowing unspent or misused funds to revert to the national treasury, saying: “Funding that reverts to the national fiscus exposes communities to prolonged risks. Non-reporting and a lack of accountability will no longer be tolerated.”

The upcoming August announcement will detail further community-level allocations, especially for those areas hardest hit by the June floods.

Proactive Risk Management

As the country confronts a future marked by increasingly frequent climate-related disasters, the Minister called on communities to remain vigilant and responsive to South African Weather Service warnings. The government continues to advocate for disaster risk reduction, emphasizing the role of early warnings in safeguarding lives, livelihoods, and infrastructure.

This bold R1.2 billion initiative represents more than just a financial commitment—it’s a promise to rebuild stronger, safer, and smarter.