The City approved the R12 billion infrastructure budget on the 12th of June, with R9 billion earmarked for benefitting lower-income households
The City of Cape Town has successfully secured R3.5 billion in financing from Nedbank to support its ambitious infrastructure investment program. This financing, approved by the Council on June 12, is a significant component of the city's 'Building For Jobs' Budget, which aims to allocate R39.5 billion to infrastructure projects from July 2024 to June 2027.
This investment represents the largest three-year infrastructure commitment ever made by a metro in South Africa. Cape Town's Mayor, Geordin Hill-Lewis, emphasized the importance of this funding, projecting the creation of 130,000 construction-related jobs over the next three years. “Lower-income households will also directly benefit from 75% – or R9 billion – of Cape Town’s R12 billion infrastructure spend in 2024/25,” Hill-Lewis stated.
The Mayor highlighted the pro-poor focus of the 2024/25 infrastructure budget, noting that it surpasses the entire infrastructure budget of any other metro in the country. “Cape Town is on track to become South Africa’s most populous city, and we are preparing for this by targeting our fastest-growing and poorest areas with infrastructure projects designed to address the inequities of the past,” he added.
Cape Town featured prominently in Nedbank’s updated Capital Expenditure Project Listing for 2023, accounting for 60% of all government infrastructure projects announced nationally. The city’s 10-year infrastructure pipeline is estimated at a substantial R120 billion.
In addition to the financing from Nedbank, Cape Town's Council also approved $150 million (R2.7 billion) in financing from the International Finance Corporation (IFC) and €100 million (R1.9 billion) in developmental financing from the Agence Française de Développement (AFD). The city employs a blended finance model, incorporating funds from its balance sheet as well as local and international markets.
Further financing agreements are expected to be announced throughout the 2024/25 financial year, underscoring Cape Town’s commitment to substantial and sustained infrastructure development.
