Cape Town records R12.2bn infrastructure investment

Cape Town Mayor Geordin Hill-Lewis announced the City’s capital expenditure tally of over R12,2bn for the 2025/26 financial year during an event at the Civic Centre on July 30.

Cape Town invested a record R12.24 billion in infrastructure during the 2025/26 financial year, marking the highest annual capital expenditure by any South African municipality and supporting continued upgrades to roads, electricity and water infrastructure.

Announcing the figures on Thursday, Mayor Geordin Hill-Lewis said the city had more than doubled its annual infrastructure investment since the start of the current council term, from about R6 billion to more than R12 billion.

The city plans to continue investing heavily in infrastructure over the next three years, with R16.7bn allocated to water and sanitation projects, R6bn to electricity grid upgrades and maintenance, and R3.7bn to road maintenance, road upgrades and stormwater infrastructure. A further R653 million has been earmarked for congestion relief projects.

The infrastructure programme was intended to support long-term growth while maintaining essential municipal services, Hill-Lewis said.

"Whether it is pipe replacement across our water and sewer network, the massive upgrades to our wastewater treatment works, the new Cape Flats MyCiTi route, critical investments to our electricity grid, or improvements to roads and public spaces, each and every one of them is vital to Cape Town's future."

The city's water and sanitation programme accounts for about 40% of planned infrastructure spending over the next three years. Projects include major wastewater treatment works upgrades, expanded water supply schemes and a R2bn programme to accelerate the replacement of ageing sewer pipes.

Road infrastructure projects include maintenance, pothole repairs, upgrades to roads and stormwater systems, as well as targeted congestion relief measures aimed at improving traffic flow.

The city also plans to invest R3.2bn in the expansion of the MyCiTi bus network across the Cape Flats.

According to Hill-Lewis, approximately 75% of the city's infrastructure spending is expected to benefit lower-income communities.

Cape Town's infrastructure programme had also contributed to growth in the local construction sector, with the city estimating that about 130 000 construction-related jobs would be supported over the current term of office, he said.

"We made a vow that this would never happen to Cape Town," Hill-Lewis said, referring to the deterioration of infrastructure in many South African municipalities. "I firmly believe this is the minimum required investment that Cape Town – and every other major metro in the country – should be making in basic infrastructure every year."

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