Cape Town ratepayers warn of rates affordability crisis as municipal costs climb
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Cape Town civic groups say rising property valuations, tariffs and housing costs are straining households, while the city defends its relief measures and lowest-cost claims.
Cape Town ratepayer and civic groups say rising property valuations, municipal charges and housing costs are worsening affordability, while the City of Cape Town defends its relief measures and its claim to the lowest overall basket of municipal costs among South Africa's major metros.
Bas Zuidberg, chairperson of the Cape Town Collective Ratepayers' Association (CTCRA), warned that a rates-affordability crisis is rapidly approaching, exacerbated by results from the Municipal Valuation Roll that show increases in some areas far outpacing the municipal average. He said the association believes the city's total expenditure is set to rise 20% over the next three years, with the share funded by ratepayers increasing from 68% to 72% - pointing to average annual increases of about 10% for ratepayers before another valuation round expected in 2029.
The association and AfriForum recently took the city to court over its use of property values to determine fixed municipal service charges. In April, the Western Cape High Court ruled that the city's 2025/26 fixed charges for water, sanitation and citywide cleaning were unlawful and invalid, finding that linking tariffs to property value rather than actual consumption was unconstitutional.
Eerste River resident Donald Lewis, who has owned his property for ten years, said his rates and taxes have risen to the point where they are nearly 50% of the bond he is paying, adding pressure on poor and middle-class households.
Siseko Mbandezi, the mayoral committee member for finance, said the city offers the highest rates relief and the widest pensioner and indigent benefits among the country's five biggest metros, with indigent households able to qualify for a 100% rates rebate and pensioners earning up to R27,000 a month eligible for rebates of up to 100%. He also said the city's total municipal bill is the lowest across different property values when rates, water, electricity and refuse charges are combined.