Latest news with #R40
IOL News
4 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. 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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.
IOL News
5 days ago
- Automotive
- IOL News
Bolt Invests over R400 000 to support emerging mobility entrepreneurs in SA
Launched in December 2024 in partnership with business academy Pranary, the program attracted over 578 applications nationwide, with Gauteng submitting the highest number. Image: Supplied. E-hailing company Bolt said it concluded its first Accelerator Program in South Africa, awarding €20,000 (over R400 000) in funding to ten participants. Bolt said that the initiative marked a significant step in the company's efforts to support entrepreneurial growth within its driver and courier community. Launched in December 2024 in partnership with business academy Pranary, the program attracted over 578 applications nationwide, with Gauteng submitting the highest number. Women made up 7% of the applicant pool. "When we empower everyday entrepreneurs with the tools to build, we don't just ignite businesses, we transform communities and shape the future of Africa's mobility. True innovation thrives in an ecosystem where ideas are nurtured, collaboration is championed, and every voice has a seat at the table. At Bolt, we're building more than a platform, we are cultivating a movement," said Lerato Motsoeneng, Bolt's Senior General Manager for South Africa. After a rigorous selection process, 120 drivers and couriers were chosen to join the Bolt Academy, where they received training in key areas such as market analysis, value proposition design, customer validation, and basic financial modelling. Twenty participants advanced to the final phase, where they worked closely with industry experts and mentors to refine their ideas. Their journey culminated in a live pitch event, with a panel evaluating their concepts on innovation, feasibility, and community impact. Each of the ten selected finalists received €2000 (over R40,000) in seed funding and will participate in six weeks of additional mentorship to further develop their ventures. At the awards event, three individuals received special recognition for their groundbreaking contributions to innovation and entrepreneurship. The awards highlighted excellence across three key categories: Kamogelo Modise received the Most Innovative Idea award for Lupa Township Delivery A sustainable, cost-effective, zero-emission bicycle delivery network designed to bridge the delivery gap in township communities through a community-driven model. Vutivi Shivambu was awarded the Most Scalable Idea for Liftsearch A ride-sharing platform that connects verified passengers with verified drivers, offering safe, affordable, and convenient long-distance travel to and from rural villages. Shannon Adams won the Best Pitch award for platform that links tourists with vetted drivers who also act as tour guides, enhancing travel experiences with local insights and safe transportation. Sandras Phiri, CEO of Pranary, emphasised the importance of practical application. 'These participants didn't just sit through lectures, they built real businesses,' he said. 'Our mentorship approach brought in active founders and investors to guide them in creating ventures that are not only viable but needed. These entrepreneurs are addressing genuine challenges in the transport space.' The Gauteng Department of Economics (GDED) is Bolt's strategic partner in creating a vibrant economy in Gauteng. Mpho Nawa, the acting Head of Department at GDED, lauded the Accelerator Program as a game-changer and said it was an example of initiative that impact our communities. 'The initiative signifies our commitment to playing a leading role in supporting initiatives that empower communities and create rising stars. This partnership would help with job creation and unlock further economic growth and diversification in townships, leading to more investment from various sectors. This will help us develop a vibrant and competitive economy in the townships, especially in the digital sector. As a Government that cares we recognise the pivotal role that innovation plays in uniting our country. This partnership with Bolt marks a significant step in supporting township businesses," Nawa said. The Accelerator Program reflects Bolt's broader aim to empower its driver and courier community with opportunities beyond the ride, helping them become active contributors to the country's evolving mobility landscape.
IOL News
6 days ago
- Business
- IOL News
How to take control of your retirement savings
Discover how to take charge of your retirement planning and avoid common pitfalls that can jeopardise your financial future. Some of us count the days until the end of the 'nine-to-five', picturing a retirement of beach walks, travel, quality time with loved ones, and the chance to finally pursue long-neglected passions. Others can't afford to stop working at all. It's easy to assume the difference lies in income or privilege, but more often it comes down to decades of financial planning — or the lack of it. There's nothing more sobering than speaking to a 60-year-old whose retirement fund totals just R100,000. What do you say to someone facing the end of a working life with no safety net? It's easy to blame the investment industry for high fees, too many choices, or underperforming portfolios, although the answer is closer to home: It's on us. We need to take a more active role in what's in our retirement fund. The 10X Investments Retirement Reality Report found that only 6% of South Africa's population is on track to retire comfortably, highlighting a significant retirement savings crisis, with most people facing financial difficulty in their 'golden years'. Of those who do plan for retirement, few are confident they can support themselves due to tough economic conditions. The report shows that a typical earner who saves 15% of their income from the start of their career and preserves their savings when changing jobs will need about 40 years to accumulate a large enough nest egg for a comfortable 30-year retirement, presuming a return of 5% after costs. Experts suggest aiming to replace 60-75% of your working income in retirement. So if you earn R40,000 per month today, you'd want R24,000 to R30,000 per month in tomorrow's money, keeping in mind that these amounts need to grow with inflation over time. 1. Take ownership and re-evaluate your investment strategy Too often, people outsource responsibility for their retirement savings, assuming their employer's fund will take care of everything. But simply belonging to a provident fund isn't enough – you need to understand how it works, what you're invested in, and whether it's aligned with your goals. When was the last time you checked your balance? Are your funds positioned for the stage of life you're in? Confidence in your retirement plan doesn't come from having a fund; it comes from knowing it's the right one for you. Confidence in your retirement plan comes from staying informed and making intentional decisions, not hoping passively. 2. Dipping into your savings, or cashing in About 56% of working people who change jobs cash in their retirement savings. When you switch jobs, it's essential to understand the potential impact on your pension. Your new employer may have different pension policies, contribution rates, and benefit structures. Transferring your pension can consolidate your funds and streamline your retirement savings. However, it's crucial to assess the fees, investment options, and any potential loss of benefits associated with the transfer. One of the biggest downsides is the loss of compound growth: by withdrawing your pension early, you miss out on decades of investment returns. Even a small withdrawal can have a major impact over time. 3. Too much debt Not prioritising debt repayments while employed leads to a debt burden at retirement, making it more difficult to cover basic expenses. Many retirees also have large mortgages or remortgage their homes to access funds. Consider also making regular top-up payments towards your car or other debts if there is space in your budget while ensuring you provide for saving when you will need it most, at retirement. Paying off short-term debt and saving for retirement are two examples of financial levers that are within the individual's control. Small, significant improvements in these areas will help you make large steps towards financial health and wealth. The key message is: don't panic. A limited retirement fund does not have to mean a life of struggle. You can still make the most of your golden years. The best time to start is now. * Jackson is a client relationship manager, at 10X Investments. PERSONAL FINANCE
