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Treasury raises contingency reserve to R10 billion over El Niño risk

Published

Finance Minister Enoch Godongwana said the reserve was R5 billion when the main budget was tabled in February. Recent disasters have already used up R12 billion, and government fears more in December and January.

Godongwana spoke on Wednesday when he tabled the mid-term budget in Parliament. He said government is recapitalising the contingency reserve because recent disasters depleted it.

Treasury named natural disasters as a risk to spending. It said disaster costs could affect other spending priorities. It also said climate change could add risk through prolonged drought and water-security pressures.

Treasury said a prolonged conflict in the Middle East, together with El Niño, is likely to affect producer costs and output. It said this could weaken domestic growth further.

Key facts

Who
Enoch Godongwana (Finance Minister); Treasury (National Treasury, which tabled the mid-term budget and cited natural…)
What
Finance Minister Enoch Godongwana said government is recapitalising the contingency reserve to R10 billion, up from R5 billion allocated in February, after recent disasters depleted reserves. R12 billion has already been exhausted on recent disasters, according to Godongwana.
When
21 October 2026
Where
South Africa
Status
Reported

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