CAPE TOWN. – The City of Cape Town has adopted its 2026/27 budget, maintaining a record R40bn three-year infrastructure investment while expanding rates relief for lower- and middle-income households.
Mayor Geordin Hill-Lewis said the budget protects Cape Town’s services as other metros face infrastructure collapse. The city is raising the rates-free rebate threshold to R620,000 of property value, up from R450,000, for residential properties up to R8m.
Key investments include R16.7bn for water and sanitation, R6bn for electrical grid upgrades, R3.7bn for road maintenance and pothole repairs, and R3.2bn for MyCiti expansion to the Cape Flats. The city has also allocated a record R6.8bn safety and security budget.
An estimated 130,000 construction jobs will flow from capital investment this term, with 75% of infrastructure spending benefitting lower-income households.
Cape Town offers the highest rates relief of South Africa’s five largest cities, including 100% rebates for indigent households and lifeline electricity for pensioners earning up to R27,000 monthly.
