Cape Town breaks municipal record with R12.2bn infrastructure investment

The City of Cape Town has achieved a South African municipal record by investing more than R12.24 billion in infrastructure during the 2026/27 financial year, with Mayor Geordin Hill-Lewis describing the milestone as a commitment to building a "City of Hope."

Addressing the City Council on Thursday, Hill-Lewis said the investment had more than doubled since the start of the current administration, increasing from around R6 billion annually to over R12 billion.

The funding will support a wide range of projects, including water and sanitation upgrades, electricity network improvements, road maintenance, public transport expansion, informal settlement upgrades and the development of public amenities.

Water and sanitation received the largest share of the budget, with R4.47 billion spent during the financial year. The mayor said Cape Town is replacing 100 kilometres of sewer pipes annually, up from just 25 kilometres previously, while major sewer upgrades are underway across the city.

Safety and Security recorded the highest spending performance, using 99.85% of its allocated budget, followed by Finance at 99.45% and Urban Waste Management at 98.37%.

The City estimates that infrastructure spending during the current term of office will create approximately 130,000 construction-related jobs, while about 75% of the investment is expected to directly benefit lower-income households.

Over the next three years, Cape Town plans to invest R16.7 billion in water and sanitation projects, R6 billion in electricity infrastructure, R3.7 billion in road maintenance and upgrades, R3.2 billion for the MyCiTi Cape Flats expansion, R3.3 billion for informal settlement upgrading and subsidised housing, R203 million for sports facilities, and R300 million for the redevelopment of the Strandfontein Pavilion.

Hill-Lewis said the scale of the investment is intended to protect Cape Town from the infrastructure decline experienced in many other municipalities while preparing the city for future population growth and increasing service demands.