Areas and Places News

Cape Town approves SA’s biggest pro-poor infrastructure investment

Mayor of Cape Town, Geordin Hill-Lewis.

The City of Cape Town has passed its Building for Jobs Budget 2024/2025 which includes SA’s largest ever infrastructure investment by a metro municipality with a 75% pro-poor spend directly benefitting lower income households.

Cape Town’s infrastructure spend of R39.5 billion over three years is more than all three Gauteng metros combined, and forms part of a R120 billion, ten-year pipeline of planned projects, says Mayor Geordin Hill-Lewis.

The municipality estimates that its infrastructure investments will yield approximately 130 000 construction-related jobs over three years.

Lower income households will benefit directly from 75% (R9 billion) of Cape Town’s R12 billion infrastructure spend during 2024/2025.

The City’s social package includes the highest free water allocation at 15KL monthly; the widest qualifying criteria for a 100% rates rebate at R450 000 property value or R7 500 monthly income; the widest qualifying criteria for lifeline electricity at R500 000 property value or less than R7 500 monthly income and for pensioners, the widest rebate and lifeline electricity criteria at R22 000 monthly income, regardless of property value.

The City of Cape Town also offers the lowest property rates for commercial, industrial, and residential properties based on the cent-in-rand rate statutory formula used by municipalities to calculate these rates. Cape Town’s rates are lower than Johannesburg by 32% for commercial, 36% for industrial, and 28% for residential properties, based on the 2024/2025 draft budgets tabled by each metro. The City’s annual property rates increase has been limited to an inflation-related 5.7%, and water and sanitation to 6.8%. It has also been able to reduce Eskom’s 12.72% increase to 11.78%.

2024-2025 cent-in-rand – residential properties

  • Cape Town – 0,006631
  • Johannesburg – 0,009213
  • Mangaung – 0,010602
  • Ekurhuleni – 0,011520
  • Tshwane – 0,012200
  • eThekwini – 0,013619
  • Buffalo City – 0,015000

2024 – 2025 cent-in-rand – commercial properties

  • Cape Town – 0,015582
  • Johannesburg – 0,023033
  • Ekurhuleni – 0,023050
  • Tshwane – 0,030510
  • eThekwini – 0,034650
  • Mangaung – 0,036056
  • Buffalo City – 0,037400

2024 – 2025 cent-in-rand – industrial properties

  • Cape Town – 0,014742
  • Johannesburg – 0,023033
  • Ekurhuleni – 0,028810
  • Tshwane – 0,030510
  • Mangaung – 0,036056
  • Buffalo City – 0,037400
  • eThekwini – 0,044576

*Nelson Mandela Bay 2024/2025 formulas unavailable. NMB 2023/24 formulas: Residential (0,012073), Commercial (0,024146), Industrial (0,030183).