In many emerging economies with areas of limited statehood, there are numerous obstacles to effective governance in response to complex challenges, such as those associated with the impacts of climate change. In the city of Cape Town’s informal settlement areas, flooding is a frequent occurrence and is regarded as a climate-induced threat. The Cape Town metropolitan area is one of South Africa’s oldest and fastest-growing urban regions. Langa and Philippi townships are located on the Cape Flats (see location map in Figure 9.1). This research study explores the flood response strategies of small-business owners through burial societies in these two areas. Burial societies are an informal self-insurance mechanism based on voluntary commitment and reciprocity