Residents of Cape Town and civic groups state that the increase in property costs, municipal tariffs, and housing expenses is worsening housing affordability. Meanwhile, the City of Cape Town defends its measures to reduce the burden and claims of low expenditure.
The City has long boasted that it ranks highest in service provision among municipal governments according to Good Governance Africa’s 2024 Governance Performance Index. The municipality insists that it maintains the lowest overall municipal expenditure among South Africa's major metropolises.
However, civil organizations warn that the sharp rise in property values and tariff increases are creating an unbearable financial burden for households.
Bas Zuidenberg, chairman of the Cape Town Collectors' Association (CTCRA), reported that the crisis of payment affordability is approaching. He noted that the situation is exacerbated by the results of the Municipal Rating List, which cause serious concern in areas with average growth significantly exceeding the municipal average.
According to him, unofficial data indicates that after the implementation of fees for the new financial year on July 1st, many residents cannot afford their fee bills due to increased property costs. Zuidenberg stated that the association believes the City is not paying enough attention to the issue of affordability.
He emphasized that the total increase in expenses over the next three years will be 20%, with the portion financed by payers rising from 68% to 72%. Since the number of households is expected to increase by no more than 5%, this effectively means that payers face an average annual increase of approximately 10%, not including another rating round scheduled for 2029. Zuidenberg concluded that the mechanism by which the City plans expenses and then seeks ways to cover them, increasingly at the expense of payers, is unsustainable.
The Association and AfriForum recently filed a lawsuit against the City to challenge the use of property value in determining fixed municipal service charges. In April, the High Court of the Western Cape ruled that the City's fixed charges for water, sanitation, and city cleaning for 2025/26 were illegal and invalid, deeming unconstitutional the linking of tariffs to property value instead of actual consumption.
Zuidenberg expressed a wish for the City to make much greater visible efforts to cut its costs and shift the burden away from payers. He stated that only then can Cape Town become a 'city for all.'
Confirming these concerns, Donald Lewis, a resident of Erster Rivier who has owned property for the last 10 years, reported that rising charges are putting increasing pressure on households. He noted that the problem affects not only him but also low-income groups and the middle class, and it impacts the cost of living and budget planning. Lewis stated that his taxes and fees have risen so much that they account for almost 50% of his mortgage payment, and he feels the City is contributing to impoverishment and creating a situation where households cannot afford taxes and fees.
Siseko Mbandezi, a member of the Mayoral Committee (Mayco) on finance, defended the pricing structure of the City of Cape Town, stating that it offers 'the greatest rate reductions and widest benefits for pensioners and low-income earners' among the country's five largest metropolises. He specified that low-income households can claim a 100% discount on fees, as well as free basic water and sanitation, while pensioners earning up to 27,000 rand per month can receive discounts on fees of up to 100% and electricity benefits. Mbandezi also reported that the City's total municipal bill was the lowest when comparing various property values, considering charges for taxes, water, electricity, and waste removal. Based on its own comparisons, the City stated that households can save between 264 and 903 rand per month on an R800,000 home, and up to 9,657 rand per month on a R15 million property. He concluded his argument by stating that Cape Town offers the lowest property rates with a much lower calculation formula (rate per rand) compared to other cities, meaning that even with a higher property value in Cape Town, people are likely to pay less living in a functioning city.