KZN Floods: R33 Million victims’ lodge purchase highlights rising climate costs, says economist

By Nomonde Mafu

The KwaZulu-Natal government’s R33 million purchase of a former lodge to house victims of recent floods is being seen as a signal of growing climate-related public expenditure across Southern Africa.

According to IOL, the property was bought from Transnet and will accommodate over 150 people who were displaced during devastating floods and later evicted from the Bayside Hotel in Durban due to non-payment by the provincial Department of Human Settlements.

An Eswatini-based economist, speaking to this publication on condition of anonymity, said this type of emergency spending is becoming more frequent and necessary across the region.

“This is part of a broader trend. Countries are now being forced to allocate significant portions of their budgets to disaster response and climate adaptation,” the economist said.

He pointed to Eswatini’s own National Disaster Management Agency as an example, saying it had become central to national climate response planning.

“If you examine their expenditure from last year, especially around drought adaptation and flood impacts, it clearly shows how climate disasters are reshaping financial priorities,” the economist explained.

Reports by the IOL reveal that in KwaZulu-Natal, the official transfer of ownership of the newly acquired facility took place recently.

KZN MEC for Transport and Human Settlements, Siboniso Duma, announced that the facility will no longer rely on private hotels as part of the province’s Temporary Emergency Accommodation (TEA) programme.

The provincial department has already paid R185 million to various hotels for temporary housing, and a further R128 million is reportedly needed to accommodate more than 1,200 people still without shelter.

Many of those affected have been homeless since the April 2022 floods, with some now temporarily residing in the Chesterville Community Hall.

“This is no longer just a humanitarian issue; it’s an economic reality,” the Eswatini economist said.

“The scale of spending we are seeing now is only the beginning. Governments will need to adjust national planning to accommodate more frequent and severe climate shocks.”

The economist warned that as climate-related disasters continue, infrastructure investments, social protection spending, and emergency relief will likely become permanent fixtures in Southern African budgets.