Latest news with #Capetonians
Eyewitness News
5 days ago
- Business
- Eyewitness News
Creecy hails reopening of Chris Hani rail corridor on CT's central line as a critical milestone
CAPE TOWN - The reopening of the Chris Hani to Cape Town leg of the central line has been hailed as a critical milestone in restoring full train services in the metro. The central line is Cape Town's most important rail corridor as it connects communities of Khayelitsha and Mitchells Plain to the Cape Town and Bellville CBDs. At full capacity, it contributes 350,000 daily passenger trips to Cape Town's 680,000 train commuters. Transport Minister Barbara Creecy visited the city on Thursday to reopen the rail artery from Khayelitsha to the city centre. ALSO READ: Crucial link in Cape Town's central rail network reopens Minister Creecy said the recovery of the Cape Town central line had not been easy, with illegal occupation and infrastructure vandalism delaying the resumption of train services. Creecy said that a fully recovered central line had the potential to return a considerable number of commuters to the train, thereby easing the city's unbearable traffic congestion. "With this achievement, we are one step closer to returning passenger rail to its rightful place as the backbone of public transport and of economic growth in our country." She said that the reopening of the line from Chris Hani to Cape Town CBD was more than the reopening of a rail line, but a return to dignity, mobility, and hope for working-class Capetonians.
IOL News
5 days ago
- Business
- IOL News
Cape Town Mayor unveils budget changes to ease ratepayer burden
Cape Town Mayor Geordin Hill-Lewis announces major tariff cuts and confirms the City's R40 billion infrastructure commitment during the tabling of the amended 2025/26 "Invested in Hope" budget . Cape Town Mayor Geordin Hill-Lewis has tabled major changes to the City's 2025/26 "Invested in Hope" budget, slashing proposed tariffs to ease the burden on ratepayers, while maintaining an ambitious infrastructure investment plan valued at R40 billion. Hill-Lewis said that these additional measures will complement the existing wide-ranging relief already contained in this budget He confirmed that the relief will 'bring meaningful relief to more homes, with bills lowering by up to 35% compared to the March budget for households under R7 million in value.' Responding to feedback from Capetonians, the mayor said the amended budget will result in 'meaningfully lower increases to bills' compared to the version tabled in March. 'We have listened carefully to ratepayers in higher value properties,' Hill-Lewis said. 'And do agree that not everyone in higher value homes is wealthy or cash-flush.'
IOL News
5 days ago
- Business
- IOL News
Critics slam Cape Town's ‘record-breaking' R36. 8bn budget for deepening inequality
The City of Cape Town unveils its amended 2025/26 budget, promising relief for households while maintaining record infrastructure investments aimed at building a safer, more inclusive, and future-ready city. Image: Unsplash Cape Town's R36.8 billion 2024/25 capital budget has been hailed by the City as a record-breaking investment in infrastructure and future-readiness. But critics argue that beneath the impressive graphics and modern catchphrases lies a deeply unequal plan that entrenches apartheid-era spatial and economic divides. Faiez Jacobs, former MP and local governance and inclusive development advisor, argues that Cape Town's budget is not failing; it is succeeding selectively, serving the affluent while sidelining the poor. Jacobs described the city's strategy as a 'green gentrification' project cloaked in smart city and sustainability language. 'Budgets reveal priorities,' he said, and this one 'reveals a city that is still hostile to the poor, performative to the public, and generous to the privileged.' His sector-by-sector analysis highlights what he calls systemic exclusion: inner-city social housing projects remain unfunded, township electrification is under-resourced, sanitation in informal settlements is largely ignored, and most major transport and ICT upgrades are concentrated in wealthy, already-connected areas. Councillor Siseko Mbandezi, the City's Mayoral Committee Member for Finance, disputes these claims. He said that a full 75% of Cape Town's infrastructure investment directly benefits lower-income households, and calls Jacobs' article 'woefully inaccurate and misleading.' According to Mbandezi, Cape Town's pro-poor portion of the four-year R40 billion budget surpasses the total capital budgets of other South African cities. In response to growing public criticism and pushback, the City amended its 2025/26 capital budget on Wednesday, May 28, introducing what it calls targeted relief without compromising the long-term infrastructure agenda. Mayor Geordin Hill-Lewis described the updated budget as the 'Invested in Hope' budget, reaffirming the City's commitment to long-term infrastructure investment while addressing affordability concerns. The City claims it has listened to Capetonians during the public participation phase and made adjustments that will significantly reduce household bills compared to the March draft. Among the most notable changes are the extension of the rates-free threshold from the first R450,000 of property value to homes valued up to R7 million, an increase in the monthly income threshold for pensioner rebates from R22,000 to R27,000, and reduced fixed water charges for homes valued between R1 million and R25 million. The City has also reduced its new City-Wide Cleaning charge for residential properties below R20 million and introduced a full rebate on this charge for pensioners. At the same time, the per-unit electricity price will decrease starting in July, as the City removes a 10% cost previously embedded in electricity tariffs to fund cleaning services. The result, the City claims, is that monthly bills will be meaningfully lower for the majority of ratepayers than initially proposed. A home valued at R1.2 million could see bills reduced by up to 15%, while a R5 to R7 million property might experience reductions of up to 40%. According to Hill-Lewis, these changes mean that 97% of ratepayers will not see increases exceeding 20%, and very few will experience anything close to the 30% or 40% spikes cited in some recent reports. The mayor framed the changes as not just financially pragmatic, but morally necessary, saying, 'If anyone here is interested only in kicking the can down the road, the exits are clearly marked.' On the controversial absence of major inner-city social housing projects over R50 million, Mbandezi reiterated that these are not typically funded through the City's main capital plan. Instead, they rely on a combination of subsidies from the Social Housing Regulatory Authority, private developer investments, and new incentive schemes. He highlighted that the City has released more land for affordable housing in the past two years than in the entire previous decade and has introduced by-law reforms to support micro-developers. Yet critics remain unconvinced. Brent Herron, secretary general of the GOOD Party, argued that only two of the city's sixteen major energy projects directly affect Cape Flats communities, and even those are merely replacing aging transformers in Mitchell's Plain and Gugulethu. He accused the City of failing to address spatial inequality in any meaningful way and points to the long-delayed MyCiTi Phase 2 rollout as further evidence. Originally promised in 2016, the network's expansion has been so slow that, in Herron's words, 'the MyCiTi network will not be completed in our lifetimes.' Fadiel Adams, a former MP and member of the National Coloured Congress, said: 'It's not a tale of two cities. It's a tale of two shades of cities.'' Adams claims that residents in working-class areas like Grassy Park pay higher rates than affluent constantia, despite receiving worse services. He also criticised what he calls 'poor planning' in roadworks and upgrades that are hurting small businesses by increasing congestion during peak hours. In his view, high-end suburbs continue to be 'heavily subsidised by the state and the poor.' Jacobs draws sharp comparisons between infrastructure allocations, asking, 'Why do Camps Bay's sewers get R427 million, but Gugulethu's sewer backlog only R154 million?' Mbandezi has directly challenged this, stating that the R4.25 billion has been earmarked for pro-poor water and sanitation projects, with major upgrades recently completed in low-income areas like Gugulethu and Masiphumelele. GOOD Party councilor, Anton Louw, recognised that the amendments offer some meaningful relief. He welcomed the expanded pensioner rebates and the restructured property tax thresholds, but noted that these measures are only a partial fix. 'This is a textbook case of people power in action,' Louw said. He praised the role of public participation. However, he cautioned that 'modest relief for some ratepayers' still does not resolve what he describes as the City's habit of shifting funds between tariff structures while extracting large surpluses from electricity and levies. 'Cape Town can be both world-class and inclusive. 'But it must place the poor and working majority at the centre of capital planning,not on the outskirts, or at the bottom of funding tables,'' said Jacobs. The City's amended 2025/26 budget is now open for a new round of public participation until June 13. [email protected] Get your news on the go, click here to join the IOL News WhatsApp channel. IOL Politics
IOL News
5 days ago
- Business
- IOL News
Cape Town Budget: Reduced tariffs, more pensioner relief, R40bn infrastructure
Cape Town Mayor Geordin Hill-Lewis announces major tariff cuts and confirms the City's R40 billion infrastructure commitment during the tabling of the amended 2025/26 "Invested in Hope" budget . Image: Henk Kruger / Independent Newspapers Cape Town Mayor Geordin Hill-Lewis has tabled major changes to the City's 2025/26 "Invested in Hope" budget, slashing proposed tariffs to ease the burden on ratepayers, while maintaining an ambitious infrastructure investment plan valued at R40 billion. Hill-Lewis said that these additional measures will complement the existing wide-ranging relief already contained in this budget He confirmed that the relief will 'bring meaningful relief to more homes, with bills lowering by up to 35% compared to the March budget for households under R7 million in value.' Responding to feedback from Capetonians, the mayor said the amended budget will result in 'meaningfully lower increases to bills' compared to the version tabled in March. 'We have listened carefully to ratepayers in higher value properties,' Hill-Lewis said. 'And do agree that not everyone in higher value homes is wealthy or cash-flush.' The city has extended the rates-free benefit from R5 million to R7 million in property value and raised the qualifying income threshold for pensioner rebates from R22,000 to R27,000 per month. 'A pensioner rebate for City-Wide Cleaning has also been included, which will offer up to 100% off this charge,' he announced. Homes valued at R1.2 million will see up to 15% lower monthly bills, while those between R5 million and R7 million could see reductions of up to 40%. According to the mayor, 'the relief will be even greater' for pensioners. Yet despite this extensive relief, the City is not backing down on infrastructure. 'We cannot cut or re-phase this City's infrastructure budget. There are no luxury or optional major infrastructure projects in this budget that are not urgently needed,' Hill-Lewis said. He added that 75% of the R40 billion budget 'will directly benefit lower-income households.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Projects include upgrades to wastewater plants, sewer and water pipe replacements, new water sources, and the ongoing MyCiTi expansion from Khayelitsha and Mitchells Plain to Wynberg and Constantia. 'These are just some of the reasons why we must keep intact our South African-record R40bn infrastructure budget,' he said. Fixed charges will remain part of the system to ensure financial sustainability. 'Many costs are fixed in nature, pipelines, trucks, chemicals, cables, staff to service it all,' Hill-Lewis explained. 'These costs remain no matter how much people consume, and so fixed costs must be met with a portion of fixed revenue.' He stressed the importance of fairness in how the city funds services. 'We cannot sustainably run a city where a R50 million household makes the same fixed contribution to water and sanitation infrastructure as a R500,000 household. Let's call that what it is, regressive taxation, and we oppose it.' On electricity pricing, Hill-Lewis confirmed that from July, the per-unit charge will decrease. 'This is made possible by discontinuing the 10% cost embedded in electricity prices that previously paid for city-wide cleaning.' Hill-Lewis dismissed reports of skyrocketing increases, stating, '97% of ratepayers won't experience the often-repeated +20% increase in monthly bills, and virtually no one will experience a 30% increase on any reasonable household consumption scenario, let alone the fabled 40% of a recent clickbait report.' He concluded by reaffirming the City's long-term vision: 'We are well on the path of raised infrastructure investment, together with ratepayers whom we most warmly thank for their contributions, we are truly on the path to building a city of hope for all.' IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
Eyewitness News
5 days ago
- Eyewitness News
After Chris Hani rail corridor reopened, Hill-Lewis keen to see full train service resume in CT
CAPE TOWN - Cape Town Mayor Geordin Hill-Lewis said he was happy to see trains moving again in the city, albeit at a reduced scale. The mayor accompanied Minister of Transport Barbra Creecy, her deputy, Mkhuleko Hlengwa, and members of the Passenger Rail Agency of South Africa (PRASA) board, who reopened the Chris Hani corridor in Khayelitsha on Thursday. This is one of the crucial links in Cape Town's central rail network. Services in this line came to a screeching halt in November 2019 due to widespread theft and vandalism. PRASA said that of the 124 Metrorail train stations in the province, only three did not have train access. Cape Town's central line is considered the backbone of public transport in the Western Cape, ferrying more than half a million train commuters when operating at its peak. Hill-Lewis said that the normal resumption of train services would be beneficial for all Capetonians. "At the moment, it's costing you more than R40 to use a minibus taxi to get to town, and this is going to bring the cost for every resident of Khayelitsha down significantly. It's going to save you money, it's going to save you time - this is a very important public service." PRASA said that full train services on the line would resume as soon as the three remaining train stations were reopened in a few months' time.
