Foreign Missions Cost Drivers – Logframe

Over the past three years, the rate of growth in annual government expenditure at foreign missions has exceeded the rate of depreciation of the currency. This growth was driven largely by higher property costs, allowances for South African staff, and growth in the number of locally recruited personnel. The cost-of-living allowances (COLAs) for South African staff at missions are exceptionally generous, ranging from R600 000 to R1.3 million per year, and are paid on top of full salaries, free accommodation, and education and other allowances. South Africa’s COLAs are 60% higher than those paid to US staff and 40–50% for UN staff (who also have to pay their own accommodation, unlike South African staff). DIRCO also has a very large and generous back office corporate services component. In addition, when expenditure is analysed per mission, it is not immediately obvious how the cost of the missions are aligned with the country’s trade and other interests.