Cape Town tables R40 billion basic infrastructure budget to improve services to all
31 March 2026
Cape Town Mayor Geordin Hill-Lewis tabled a R40 billion three-year infrastructure budget - a South African record - as part of the metro's 2026/27 "City of Hope" Budget draft. See the Mayor’s full address to Council here: https://bit.ly/4ceVdWF
'After a term of raised infrastructure investment backed by good governance and employment gains, today Cape Town is undeniably South Africa’s beacon of hope, which is also the title of the final budget of this term – the City of Hope Budget 2026/27.
'This draft budget achieves several things at once that simply wouldn't be possible in other cities: an SA-record infrastructure investment that outpaces all Gauteng metros combined; the most comprehensive relief for struggling households and pensioners; and the lowest property rates and total monthly bills of any metro. Cape Town is SA’s one city that works, and with these investments we are building a city of hope for all, in line with our long-term vision,' said Mayor Hill-Lewis in his address to City Council on 31 March.
Around 130 000 construction-related jobs will flow from capital investment in the current term of office alone, with 75% of infrastructure spending directly benefitting lower-income households.
Infrastructure investment highlights over the three-year budget framework include:
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R16,7bn water and sanitation investment - 40% of total spending - including major wastewater works upgrades, quadrupled pipe replacement (a R2bn project), and expanded water supply sources
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R6bn in electrical grid upgrades and maintenance to prepare for a decentralised energy future with less Eskom reliance
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R3,7bn in road maintenance, pothole repairs, upgrades to roads and stormwater, and R653m in congestion relief projects
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A further R3,3 billion for the major MyCiTi Cape Flats expansion, the biggest of its kind in South Africa.
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R3,3bn for informal settlement upgrading and state-subsidised housing
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A further R227m for sports facility upgrades
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R300m for the Strandfontein Pavilion redevelopment
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The City of Hope Budget further includes an all-time record R6,8bn safety and security budget proposed for 2026/27.
The City has grown its policing personnel by over 50% over the term of office, adding 1 340 officers.
Major safety technology investments for smarter policing include CCTV, dash- and bodycams, drones, gunshot detection, automated licence plate recognition, and EPIC digital coordination across safety operations.
Property Rates and Tariffs
Around 60% of homes are set to get a property rates decrease or no change in rates at all, even though the latest General Valuation showed strong property value growth for homeowners.
This is due to special measures to help ratepayer's pockets, including a proposed 10,2% lowering of the property rates formula (known as the "rate-in-rand"). The first R500 000 of property value will also be rates-free (up from R450 000), and this will now apply to all homes up to R8 million (up from R7m).
Other measures include a proposed raising of indigent relief thresholds - already SA's widest. This includes a 100% rebate for Water and Sanitation, as well as City-Wide Cleaning, up to R620 000 property value (both up from R500 000), and a 100% rebate for refuse collection up to R580 000 (up from R450 000).
Tweaks have also been made to property value bands for fixed charges to mitigate the number of properties moving between bands due to the General Valuation.
More pensioners and social grant recipients will benefit from rates rebates and lifeline electricity due to the raised upper qualifying limit in 2025/26, from R22 000 to R27 000 total monthly household income, regardless of property value, SA’s highest threshold.
Annual increases summary:
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Property Rates: -10,2% reduction in rate-in-the-Rand, individual bills will vary due to General Valuation
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Water and Sanitation: 4,5%
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Refuse collection: 3,75%
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City-Wide Cleaning: 3,75%
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Electricity: 6,67% on average (2,34 percentage points lower than the Nersa-approved 9,01% Eskom increase to municipalities)
Budget open for comment
The City of Hope Budget 2026/27 is open for public comment from today, 31 March, until 30 April.
Visit
www.capetown.gov.za and click the draft budget trending box on the homepage for all budget-related information, as well as a public engagement schedule.
Submit comments on the draft Budget:
CAPTION: From left to right: City Manager Lungelo Mbandazayo, Mayor Geordin Hill-Lewis, CFO Kevin Jacoby and Mayoral Committee Member for Finance, Siseko Mbandezi.
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Published by:
City of Cape Town, Media Office
