The City of Cape Town has various incentives and initiatives available to residents as part of its new 2025/26 budget. Council recently approved the debt write-off of approximately R2,2 billion in old debt for qualifying beneficiaries.
In addition, the City has expanded its rates and services relief this year. “The City’s debt write-off initiative is to offer relief for qualifying residents struggling to make ends meet and also to improve the financial sustainability of the metro by encouraging a culture of payment. This is in addition to the several relief measures offered in the 2025/26 budget. The City is offering additional relief to residents in the form of debt remission for municipal debt outstanding for periods prior to and including 30 June 2024. This is on condition that they enter into a six-month payment arrangement to settle the remaining debt. The stagnant national and global economy has had a negative impact on the ability of many residents, across various income and property value categories, to pay their municipal accounts.
Institutions
“The debt remission initiative is available for residents and institutions such as places of worship, old age homes, cemeteries and crematoria, non-profit organisations, public benefit organisations, animal shelters, accommodation for the vulnerable, local community museums, social housing and youth development organisations. We thank our residents who continued to pay their accounts during these challenging times. Their commitment enables the City to assist those who are struggling financially. The City has maintained an excellent collection ratio and as at 30 June 2025, the annual collection ratio result was 97,83%. It should be noted that write-offs will be reversed if payment arrangements are not adhered to. Qualifying customers are encouraged to contact the City. They will be informed whether they qualify when visiting the customer interaction centres or when contacting the call centre. As a future-fit metro, the City will continue to provide services and relief. All income from rates and services is used to pay for service provision,’ said the City’s Mayco Member for Finance, Siseko Mbandezi.
Assistance
Aside from the special debt write-off initiative, the City offers several types of assistance for individuals and organisations including:
• Pensioner and social grant recipient support
• Indigent support
• Free water and sanitation for old age homes and shelters
• Free electricity on the Lifeline tariffFor more details on relief options:
For more information visit https://www.capetown.gov.za/City-Connect/Apply/Financial-relief-and-rebates.
