The City of Cape Town has approved a substantial R2.2bn debt write-off for qualifying residents in its 2025/26 budget to provide economic relief and improve the metro’s financial sustainability.
Despite achieving a high annual collection ratio of 97.83% as of 30 June 2025, the City recognises the need to assist residents facing financial hardship. The write-off applies to municipal debts outstanding up to 30 June 2024.
Eligible beneficiaries include owners of residential properties valued between R450,000 and R7.5m. Additionally, the relief extends to indigent households with zero property valuation, income-based indigent customers, pensioners, social-grant recipients, and various community-focused institutions such as cemeteries, crematoria, non-profits, animal shelters, facilities for vulnerable groups, local museums, old age homes, public benefit organisations, social housing, and youth development organisations.
This initiative aims to ease financial burdens while supporting the city's fiscal health.
Residential properties valued between R450,000 and R2.5m may qualify for a full 100% write-off on arrears older than one year.Properties valued between R2.5m and R7m can receive up to a 50% reduction on debt older than one year.Low-cost housing and indigent households earning less than R3,500 per month are eligible for complete debt cancellation.This programme requires owners to commit to a payment arrangement for their current and future accounts. If the payment arrangement is not maintained, the previously written-off debt will be reinstated.
Says Siseko Mbandezi, Mayoral Committee Member for Finance at the City of Cape Town: "We have said those with property valued from over R500,000 to up to R2.5m would qualify for a 100% write-off and those with property valued over R2.5m and up to R7m would also qualify for a reduction of up to 50% off of their debts. That on its own shows the commitment to also assist those who are in the middle income households with financial difficulty."
Customers are urged to either email the City of Cape Town at payment.arrangements@capetown.gov.co.za or to call call 0860 103 089 for further inquiries.
