Cape Town’s latest municipal budget sets out an expansive vision for the Mother City’s next phase of growth, with billions earmarked for infrastructure, safety, housing and energy security, investments the City believes will shape daily life for residents long after the current administration ends.
Mayor Geordin Hill-Lewis tabled what he described as the administration’s fifth and final budget during a Council sitting this week, framing it as a culmination of projects launched over the past four years and a roadmap aimed at strengthening service delivery while expanding opportunity across communities, as highlighted by the City of Cape Town.
The proposal, known as the ‘City of Hope Budget,’ focuses on infrastructure spending as the main part of the city‘s plan, with capital investments more than doubling since the beginning of the current term.
At the heart of the financial plan is a capital budget exceeding R13bn, a sharp increase from the R6.1bn allocated in 2021/22.
Major projects already under construction include the MyCiTi bus expansion across the Cape Flats, large-scale sewer upgrades, electricity grid investments and multiple wastewater treatment improvements.
Speaking during the budget address, Hill-Lewis said the goal remains to build ‘a place where many more people can live with dignity and independence, and without the fear of poverty and unemployment as a constant shadow over their lives.’
Water and sanitation receives one of the largest allocations in the budget, with R5.4bn set aside for infrastructure upgrades in the 2026/27 financial year alone.
Over three years, spending in this category will total R16.7bn, about 40% of the City’s capital programme.
The City added that pipe replacement has accelerated significantly, with 401km of water and sewer pipes replaced between 2022 and 2025, more than several major metros combined during the same period.
Alongside this, R1bn has been allocated to maintain street lighting infrastructure and R1.2bn over three years to expand refuse removal fleets, reinforcing what the administration calls its commitment to improving everyday municipal services.
Meanwhile, safety and security spending continues to rise, reaching a proposed R6.8bn, as the City has added more than 1 300 law-enforcement and metro police officers during the current term, citing ongoing pressure on national policing resources.
Funding has also been directed toward the N2 Edge safety upgrades, aimed at improving protection for motorists and nearby communities along the highway corridor.
Hill-Lewis told councillors the City had stepped in where residents required stronger local safety responses, saying municipal investment had become necessary to fill service gaps.
‘We know we have the overwhelming support of the communities along the N2 as well as the motorists who use the road every day, and those are the opinions that matter.’
He emphasised: ‘The N2 Edge barrier will not only protect motorists against the kind of violent and traumatic attack which has become far too commonplace in recent years, it will also offer better safety to the people living in those communities, and for their children who play close to the highway.’
Energy security remains another central pillar of the budget. Over the medium-term framework, R6bn will go toward electricity grid upgrades as Cape Town continues efforts to reduce reliance on Eskom.
Planned spending includes renewable energy projects, upgrades to the Steenbras hydroelectric scheme and waste-to-energy initiatives, alongside expanded LED street-lighting installations.
City officials say these investments aim to stabilise supply while preparing for a more decentralised energy future.
Affordable housing initiatives also feature prominently, supported by a land release pipeline expected to enable around 12 000 housing units through partnerships with social housing institutions and private developers.
Meanwhile, R3.3bn has been allocated toward expanding the MyCiTi bus network into Mitchells Plain and Khayelitsha, complemented by additional funding for road upgrades, congestion relief and pothole repairs.
Beyond large infrastructure projects, the budget highlights smaller community upgrades, including sports facilities and public recreation spaces.
Hill-Lewis noted renewed investment in venues such as Wesfleur Stadium, Blue Downs Stadium and Lentegeur sports fields, alongside the redevelopment of Strandfontein Pavilion, a R300m coastal project intended to revitalise a site long associated with family recreation.
‘What we’re going to build there with this R300m investment, the shops and restaurants, the concert and events spaces, the boat launch ramp and NSRI base, and all the beautiful upgrades to the whole precinct, is going to make the new Strandfontein Pavilion a place that future generations will reminisce about in the same way, ‘ he stated.
He described these community investments as equally important to major engineering works, saying accessible public spaces contribute to social cohesion and wellbeing.
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Picture: Sharaan Muruvan / Unsplash
