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KZN Social Development announces overhaul of NPO funding to enhance transparency and accountability

Siphesihle Buthelezi|Published

KwaZulu-Natal's Social Development MEC Mbali Shinga announces a significant overhaul of the province's NPO funding system.

Image: KZN Social Development / Facebook

KwaZulu-Natal Social Development MEC Mbali Shinga has announced a major overhaul of the province’s non-profit organisation (NPO) funding system, saying the move is aimed at restoring transparency, accountability and public trust in the allocation of government resources.

Speaking at the unveiling of the provincial NPO funding advert in La Lucia, Durban, on Thursday, Shinga said the KZN Department of Social Development was taking a “decisive step” towards fully implementing the Sector Funding Policy, which became mandatory nationally in 2022.

The department currently allocates more than R800 million annually to approximately 1,300 NPOs across the province to provide social welfare and community development services.

“These organisations play a vital role in extending government services and ensuring that vulnerable individuals and families receive the support they need,” Shinga said.

The MEC said the revised funding process comes after years of criticism over the previous model, which was accused of lacking transparency and consistency in how funds were distributed.

She referenced the NAWONGO court judgment against the Free State Department of Social Development, which highlighted weaknesses in the previous funding framework and prompted a national review of the system.

“The Sector Funding Policy replaces the 2004 Policy on Financial Awards to Service Providers. It provides a uniform, transparent, equitable and developmental framework for funding non-profit organisations,” she said.

Shinga acknowledged that KZN had lagged behind in fully implementing the policy, but said the launch of the new funding advert marked a turning point.

“This process is about restoring dignity, trust and fairness in the funding system,” she said.

The announcement comes during Child Protection Month, against the backdrop of recent tragic incidents involving minors in Verulam and Umzinto.

Shinga said the cases underscored the urgent need to strengthen child protection systems and psychosocial support services in the province.

“These heartbreaking incidents serve as a painful reminder of the urgent need to strengthen child protection systems, deepen psychosocial support, and work collectively as government, families, schools, and communities to safeguard the well-being of children across KwaZulu-Natal,” she said.

The MEC also pointed to broader social challenges, including poverty, unemployment and substance abuse among young people, saying these issues continued to place severe pressure on families and communities.

As part of efforts to strengthen service delivery, the department is in the final stages of filling 100 social worker posts across the province.

Shinga said the appointments would improve the department’s responsiveness and enhance child protection and psychosocial support services.

The department has identified priority services that will be sourced from NPOs under the new framework, following what it described as a rigorous prioritisation process.

Applications for funding officially opened on 21 May 2026 and will close on 30 June 2026.

Shinga urged qualifying organisations to apply and participate in what she described as a fair and transparent process.

“Government alone cannot address the social challenges facing our province. Strong partnerships between government, civil society and communities remain essential,” she said.

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