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CAPE TOWN'S R43 BILLION INFRASTRUCTURE INVESTMENT
A Blueprint for Growth and Job Creation
Cape Town, a city renowned for its natural beauty and vibrant cultural history, is embarking on a transformative journey to meet the needs of its growing population. With an infrastructure investment of R43 billion over the next three years, the City aims to address critical service delivery challenges, expand its capacity, and create an estimated 135,000 jobs. This bold initiative positions Cape Town as South Africa’s fastest-growing metropolis, with the infrastructure spending far outpacing other major cities like Johannesburg and Durban.
"Cape Town’s infrastructure spending is far outpacing any other metro, more than Johannesburg and Durban combined." - Mayor Geordin Hill-Lewis
A City on the Rise
Mayor Geordin Hill-Lewis, in his address at the launch of the City’s 2024 Infrastructure Report, emphasised the importance of this investment. "Our infrastructure spending is far
outpacing any other metro, more than Johannesburg and Durban combined," Hill-Lewis proudly stated. The mayor pointed out that Cape Town’s population is projected to exceed Johannesburg’s soon, with the City expected to become home to over five million people. This rapid growth necessitates an urgent and substantial response in terms of infrastructure upgrades.
The City’s infrastructure plan covers a wide range of sectors, including water, sanitation, energy, transportation,
and waste management. Hill-Lewis highlighted the focus on long-term projects, noting that Cape Town’s infrastructure pipeline for the next decade is valued at R120 billion. These investments aim to sustain the City’s expansion and support the broader South African economy.
"The City’s New Water Programme aims to add 300 million litres of water a day from new sources by 2030, ensuring a secure future for Cape Town." - Mayor Geordin Hill-Lewis
Water and Sanitation: Securing the City’s Future
Cape Town’s infrastructure spending places a significant emphasis on water and sanitation, with 42% of the R120 billion ten-year pipeline dedicated to this area. The City’s New Water Programme, which seeks to add 300 million litres of water per day from new sources by 2030, is a key component of these efforts. By 2040, around 25% of Cape Town’s water supply will come from desalination, groundwater extraction, and water re-use programmes, ensuring that the City is better prepared to handle the growing demand and mitigate the risks of future droughts.
Mayor Hill-Lewis also underscored the importance of upgrading Cape Town’s wastewater systems. The City is investing in multibillion-rand upgrades to seven wastewater treatment plants, which will help reduce sewer spills and ensure that the system can cope with increasing urbanization. In addition to these upgrades, the City plans to replace 100 km of sewer pipes annually, quadrupling its previous efforts.
Transportation: Connecting a Growing City
As Cape Town expands, it must also ensure that its transportation infrastructure can keep pace with the increased population and economic activity. To address this, the City has earmarked R21 billion for new urban mobility projects over the next decade, including major investments in three key corridors: Khayelitsha–Century City, Symphony Way, and Klipfontein. These projects are designed to enhance public transport, reduce congestion, and improve access to key areas of the city.
One of the largest ongoing projects is the MyCiTi Phase 2A route, which will serve the metro southeast from Claremont/Wynberg to Khayelitsha/ Mitchells Plain. This R5.4 billion project is currently the biggest infrastructure development in the Western Cape and is expected to significantly improve mobility in the region. These transportation upgrades are essential for reducing travel times and ensuring that Cape Town’s residents have access to efficient and reliable public transport.
Job Creation and Skills Development
A core aspect of Cape Town’s infrastructure investment is its focus on job creation and skills development. The R43 billion investment is projected to create 135,000 jobs over the next three years, spanning various sectors such as construction, engineering, environmental management, and urban planning. These jobs are crucial for the City’s economic growth, providing employment opportunities to a wide range of residents, from entry-level workers to skilled professionals.
The City’s participation in the National Treasury’s Infrastructure Skills Development Grant (ISDG)
Programme further underscores its commitment to building a skilled workforce. Since joining the ISDG in 2014, the City has trained and mentored 125 graduates in fields such as civil engineering, materials science, biotechnology, and environmental science. This initiative aims to build a pool of skilled professionals who can contribute to the City’s infrastructure projects, ensuring that Cape Town has the capacity to meet its long-term development goals.
Gareth Morgan, the City’s Executive Director for Future Planning and Resilience, emphasised the importance of this programme: “The ISDG plays a crucial role in supporting these efforts. By funding a stream of built environment graduates, the ISDG enables these young professionals to enter the City and be mentored towards professional registration”
Morgan also highlighted the longterm benefits of investing in skills development, noting that the ISDG programme ensures that the City has a continuous pipeline of qualified professionals who can take on future infrastructure challenges.
ISDG plays a crucial role in supporting these efforts. By funding a stream of built environment graduates, the ISDG enables these young professionals to enter the City and be mentored towards professional registration." – Gareth Morgan, Executive Director for Future Planning and Resilience
Energy and Sustainability: A Greener Future
One of the most pressing challenges facing Cape Town, and indeed much of South Africa, is the issue of energy security. To combat the ongoing threat of Eskom’s loadshedding, Cape Town is investing in independent power generation. By 2026/27, the City plans to add 650 MW of independent power to its grid, with the long-term goal of adding 1 GW. This investment will protect Cape Town from four
stages of loadshedding and help reduce the City’s reliance on Eskom.
Cape Town’s energy strategy is closely aligned with its broader sustainability goals. By diversifying its energy sources and investing in renewable energy projects, the City aims to reduce its carbon footprint and support South Africa’s transition to a greener economy.
The infrastructure investment plan also includes significant upgrades to waste management systems, with the City planning to build ten new waste drop-off facilities over the next decade. These upgrades will improve waste collection and disposal services, particularly in under-served areas, while also reducing the environmental impact of landfill sites.
Conclusion
Cape Town’s R43 billion infrastructure investment represents a bold and forward-thinking approach to urban development. With a focus on water, sanitation, transportation, energy, and waste management, the City is laying the foundation for sustained growth and economic resilience. Mayor Geordin Hill-Lewis and his administration have made it clear that these investments are not just about meeting today’s needs but are also about preparing for the future.
As Cape Town continues to grow, these infrastructure projects will play a crucial role in ensuring that the City remains one of South Africa’s most livable and economically dynamic cities. By investing in key sectors and creating jobs for its residents, Cape Town is not only addressing its immediate challenges but also positioning itself for long-term success.
