Cape Town achieves record-breaking spending on public infrastructure
In a significant move, Cape Town has announced an all-time record investment of R9.5 billion in infrastructure for the 2024/25 financial year, as part of its "Invested in Hope" budget. This investment represents a 92.3% utilisation of the city's capital budget, making it the highest infrastructure spend by any South African metro to date.
The investment strategy is focused on safety, security, water, sanitation, transport, and energy projects. Key details and future plans include:
Water and Sanitation
The city aims to replace 100 km of sewer pipes and 50 km of water mains annually, with a R4 billion allocation achieving 95% expenditure. This investment is crucial for maintaining critical water infrastructure, and every such investment is an investment in the dignity and health of Capetonians.
Safety and Security
The Safety and Security Directorate nearly fully utilised its R472 million budget, spending 99.7% on upgrading fire stations, adding new vehicles, improving metro police training facilities, and deploying advanced digital crime-fighting technology such as CCTV, bodycams, and integrated digital systems.
Transport
About R4.5 billion was spent on expanding and enhancing the Khayelitsha-Mitchells Plain MyCiTi rapid transit route, improving mobility for residents.
Energy
92.5% of the energy budget was spent on maintaining and upgrading the city’s electrical grid to ensure a reliable power supply.
Mayor Geordin Hill-Lewis frames this robust investment strategy as essential to preventing service delivery failures seen in other cities and aggressively addressing crime concerns while enhancing basic city services. The focus on infrastructure is part of broader economic ambitions in the Western Cape, which has seen significant foreign direct investment and infrastructure development intended to boost economic growth and position Cape Town as a competitive global city.
Over the next three years, Cape Town plans to spend an SA-record R40 billion on infrastructure under the Invested in Hope Budget. The city spent 75% of this spending directly benefiting lower-income households. Other directorates investing over R1 billion this year include Energy (92.5% spent), Human Settlements (92%), and Urban Mobility (84.4%).
The Water & Sanitation directorate spent 95% of its R4 billion capital budget, making it the top spender in terms of money spent. Urban Waste Management spent 96.3% of its R400 million budget, while Corporate Services spent 97.4% of its R432 million budget.
The Invested in Hope Budget includes a R2 billion project to replace 100 km of sewer and 50 km of water pipes per year to reduce sewer spills and water pipe bursts. It also includes R4.5 billion for the new MyCiTi route linking Khayelitsha, Mitchells Plain, and various other communities to Wynberg/Claremont.
This investment marks a significant step forward in Cape Town's vision to future-proof the city and realise its potential as a thriving, sustainable global city.
- The R4 billion investment in water and sanitation projects, including the replacement of 100 km of sewer pipes and 50 km of water mains annually, is a crucial part of the city's strategy to maintain critical infrastructure and invest in the dignity and health of Capetonians.
- The Safety and Security Directorate, with a R472 million budget, has invested heavily in upgrading fire stations, adding new vehicles, improving metro police training facilities, and deploying advanced digital crime-fighting technology.
- The transport sector received a significant boost with R4.5 billion spent on expanding and enhancing the Khayelitsha-Mitchells Plain MyCiTi rapid transit route, improving mobility for residents.
- Energy infrastructure received 92.5% of the allocated budget, with the focus on maintaining and upgrading the city’s electrical grid to ensure a reliable power supply, contributing to the city's broader economic ambitions and position as a competitive global city.
