Cape Town Mayor Geordin Hill-Lewis has unveiled an ambitious R40 billion investment in basic infrastructure over the next three years, as part of the newly adopted City of Hope Budget 2026/27, Cape {town} Etc reports.
During the budget announcement on 29 June, Hill-Lewis reiterated the city’s dedication to its residents.
This includes an innovative approach to shielding lower- and middle-income households from economic strains, particularly following a recent court ruling affecting municipal cross-subsidisation.
‘We are proud to table the City of Hope budget for adoption today, with every part of our basic infrastructure investment still intact,’ he stated.
Highlighting the pressing need for infrastructure, Hill-Lewis pointed to Cape Town’s ongoing issues with service delivery in other municipalities.
‘This budget ensures Cape Town continues to be South Africa’s beacon of hope, offering the best services and value for ratepayer contributions,’ he asserted while detailing the extensive improvements planned for water, sanitation, energy, and transportation systems.
Some key highlights of the three-year budget framework include:
- R16.7 billion allocated for water and sanitation, which comprises 40% of total spending. This will focus on major wastewater treatment upgrades and expansive pipe replacements.
- R6 billion in electrical grid upgrades, setting the path towards reduced reliance on Eskom.
- R3.7 billion dedicated to road maintenance and congestion relief.
- R3.2 billion for the MyCiTi Cape Flats expansion, marking the largest transport investment of its kind in South Africa.
- R3.3 billion towards informal settlement upgrades and state-subsidised housing.
- R6.8 billion proposed for safety and security.
The budget also features expanded rates relief for low and middle-income households. The initial property value threshold for rates rebates has been raised from R450,000 to R620,000 for residential properties valued up to R8 million.
Furthermore, the budget includes provisions to mitigate fixed water and sanitation charges, benefiting those most in need.
Pensioners in Cape Town will continue to enjoy the city’s most generous financial support, with eligibility based on the same income ceiling of R27,000 per month.
Despite this ambitious financial agenda, the opposition party GOOD has voiced concerns about the rising cost of living in Cape Town, accusing the ruling Democratic Alliance (DA) of failing to address affordability issues for ordinary residents.
Brett Herron, the party’s mayoral candidate, argued that ‘the cost of living in the DA-led City is rising faster than wages, faster than pensions, faster than grants and faster than small business revenue,’
Herron further claimed that the DA’s narrative regarding its infrastructure investments lacked transparency, suggesting that much of the funding comes from conditional grants rather than discretionary spending.
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Cape Town budget 2026: City highlights major household relief
Picture: Gallo Images / Brenton Geach
