Cape Town’s record R12.24bn infrastructure spend hailed as model for SA

The investment, which remains subject to final financial reconciliation, is reportedly the highest annual capital expenditure ever achieved by a South African municipality. Public Works and Infrastructure Minister Dean Macpherson has praised the City of Cape Town after it announced a record R12.24 billion investment in capital projects during the 2025-26 financial year. He described it as an example for municipalities across South Africa to follow. The investment, which remains subject to final financial reconciliation, is reportedly the highest annual capital expenditure ever achieved by a South African municipality. The city’s reported R12.24 billion capital investment is more than double the roughly R6 billion in annual capital spending at the beginning of the current municipal term. It also exceeds the infrastructure investment made by South African municipalities ahead of the 2010 Fifa World Cup. Macpherson said the achievement demonstrated how infrastructure investment could stimulate economic growth, create jobs and improve service delivery. ‘Infrastructure investment creates jobs’ Macpherson said Cape Town’s performance showed what could be achieved through effective planning and implementation. “Cape Town is demonstrating what can be achieved when a government prioritises infrastructure investment, properly plans its projects and builds the institutional capacity required to turn capital budgets into construction sites.” He added: “Public infrastructure investment is one of the most effective ways to stimulate economic activity and create jobs. Every construction project supports contractors, engineers, artisans, suppliers and workers, while the completed infrastructure enables businesses to grow, communities to develop and further investment to take place.” The minister said municipalities should view infrastructure spending as an economic driver rather than simply another area of government expenditure. Municipalities urged to follow Cape Town’s lead Macpherson said Cape Town’s experience proved that declining infrastructure and underspending on capital budgets could be reversed. “The lesson from Cape Town is that declining infrastructure and underspent capital budgets are not inevitable. Through capable administration, credible project pipelines and disciplined implementation, municipalities can substantially increase infrastructure delivery and ensure that public funds translate into visible improvements in communities.” He said the city’s approach should inspire municipalities across the country. “This should serve as an example to municipalities across South Africa. Our cities and towns must become engines of infrastructure investment that create jobs, unlock economic opportunities and ensure that services keep pace with population growth.” Lessons to support other municipalities Macpherson said the city’s achievement aligned with the Department of Public Works and Infrastructure’s vision of turning South Africa into “a construction site” by accelerating infrastructure delivery. He said lessons from Cape Town’s investment programme would be incorporated into Infrastructure South Africa’s Adopt-A-Municipality pilot programme. This aims to help strengthen infrastructure delivery in municipalities across the country. “We want to see shovels in the ground and cranes in the sky in every part of the country. Cape Town’s investment shows what is possible when infrastructure is treated as a catalyst for growth rather than simply another area of government expenditure.” He added that governments could create thousands of jobs and restore public confidence by investing in infrastructure and improving implementation capacity. “By investing boldly in infrastructure, strengthening implementation capacity and ensuring that projects are successfully delivered, governments across South Africa can create thousands of jobs, restore confidence in the State and build a better South Africa.”