Cape Town has tabled a new R40 billion municipal budget, with the City placing infrastructure and service delivery at the centre of its plans for the 2026/27 financial year. Mayor Geordin Hill-Lewis presented the proposal as the administration’s fifth and final budget, calling it the “City of Hope Budget” and positioning it as a long-term plan to improve daily life across communities.

Infrastructure Takes the Biggest Share

A major part of the budget is the City’s capital programme, which exceeds R13 billion. That is up sharply from R6.1 billion in 2021/22. According to the budget details, major projects already under way include the MyCiTi bus expansion across the Cape Flats, sewer upgrades, electricity grid investments and wastewater treatment improvements.

Water and sanitation will receive one of the biggest allocations, with R5.4 billion set aside in 2026/27 alone. Over three years, that figure rises to R16.7 billion, which the City says makes up about 40% of its capital programme. The City also said 401km of water and sewer pipes were replaced between 2022 and 2025.

Safety, Energy and Transport in Focus

Safety and security spending is set to rise to R6.8 billion. The City says more than 1 300 law enforcement and metro police officers have been added during the current term. Funding has also been directed to N2 Edge safety upgrades, which the mayor said are meant to protect motorists and nearby communities.

Energy security is another big priority. Over the medium term, R6 billion will go towards electricity grid upgrades as Cape Town continues trying to reduce its reliance on Eskom. Planned projects include renewable energy, upgrades to the Steenbras hydroelectric scheme, waste-to-energy initiatives and expanded LED street lighting.

The budget also includes R3.3 billion for expanding the MyCiTi bus network into Mitchells Plain and Khayelitsha. Affordable housing also features strongly, with the City saying its land release pipeline could enable around 12 000 housing units through partnerships with social housing institutions and private developers.

Community Spaces Also Get Attention

Beyond large-scale infrastructure, the budget includes funding for sports facilities, public recreation spaces and the redevelopment of Strandfontein Pavilion. Hill-Lewis said these community upgrades matter just as much because they support dignity, wellbeing and stronger neighbourhoods.