The City of Cape Town has approved its 2026/27 City of Hope Budget, committing R40 billion towards infrastructure investment over the next three years in what Mayor Geordin Hill-Lewis says is one of the city’s largest investments in essential services.
Announcing the budget on 29 June, Hill-Lewis said the spending plan is designed to strengthen Cape Town’s water, sanitation, electricity, transport and housing infrastructure while protecting lower- and middle-income households from increasing financial pressure.
“We are proud to table the City of Hope budget for adoption today, with every part of our basic infrastructure investment still intact,” he said.
The three-year capital programme allocates R16.7 billion to water and sanitation projects, accounting for around 40% of the total infrastructure budget. The funding will support major wastewater treatment upgrades and the replacement of ageing water infrastructure.
Electricity infrastructure will receive R6 billion, with the city continuing efforts to improve its grid and reduce its dependence on Eskom. A further R3.7 billion has been allocated to road maintenance and congestion relief, while R3.2 billion will fund the expansion of the MyCiTi bus service into the Cape Flats.
The budget also sets aside R3.3 billion for informal settlement upgrades and subsidised housing, alongside R6.8 billion for safety and security initiatives.
Beyond infrastructure, the city has expanded property rates relief. The residential property value threshold for rates rebates has increased from R450,000 to R620,000 for qualifying homeowners with properties valued up to R8 million. The budget also includes measures aimed at reducing the impact of fixed water and sanitation charges on qualifying households, while pensioners earning up to R27,000 per month will continue to qualify for the city’s financial assistance programme.
For young Capetonians, much of the budget’s significance lies in its long-term impact rather than its immediate effect. Investment in transport infrastructure, electricity and housing has the potential to improve access to jobs, education and economic opportunities over time. Expanding the MyCiTi network could improve mobility for thousands of commuters, while investment in electricity infrastructure may strengthen the city’s energy resilience as businesses and households continue to navigate South Africa’s power challenges.
However, infrastructure spending alone does not address the affordability pressures many residents face today.
Opposition party GOOD criticised the budget, arguing that the cost of living in Cape Town continues to rise faster than incomes. The party’s mayoral candidate, Brett Herron, said ordinary residents are struggling with increasing expenses despite the city’s infrastructure ambitions.
Herron also questioned the city’s presentation of its investment programme, arguing that a significant portion of the infrastructure funding comes from conditional grants allocated by national government rather than discretionary municipal spending.
The differing perspectives highlight a broader debate facing South Africa’s metros: whether large-scale infrastructure investment should be viewed as a long-term solution to economic growth and service delivery, or whether more immediate interventions are needed to address the rising cost of living.
For Cape Town residents, the success of the R40 billion programme will ultimately be measured not only by kilometres of roads resurfaced or pipes replaced, but by whether those investments translate into more affordable, reliable and accessible services in the years ahead.