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Tracy-Lynn Field, Director of the Mandela Institute, Professor of Law, University of the Witwatersrand

Should governments pay businesses for climate disasters? Researchers unpack huge lawsuits in South Africa

The most catastrophic natural disaster ever recorded in South Africa’s KwaZulu-Natal province – also the worst flood in South Africa for more than a century – has sparked two major lawsuits by insurance companies whose business clients suffered massive flood damage.

The April 2022 floods in eThekwini municipality, South Africa claimed 544 lives, displaced more than 40,000 people, and damaged or destroyed over 4,000 homes and businesses.

The economic losses were staggering, with major production facilities, logistics routes and informal settlements submerged after record-breaking rainfall. Floodwaters destroyed machinery and interrupted production in several large companies.

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