City allocates more than R13 billion to help Cape Town through tough times
9 July 2020
From July, the City will allocate more than R13 billion towards Cape Town’s COVID-19 assistance and economic recovery. During the nationally mandated hard lockdown periods in April and May, we did our best to protect livelihoods where we could by ensuring that our suppliers, many of whom are small, and medium businesses, were paid within 30 days. To date, approximately R4,1 billion has been paid to suppliers within 30 days. Fast payments to suppliers are crucial and we have maintained our high payment rate of 97% payments done within a month. We have also issued tenders and purchase orders worth approximately R6,25 billion to businesses to help our service delivery mandate.
It is a tough time for everyone. South Africa’s economy has been pushed to the brink, and we are facing many unknowns. The City thus continues to look at what financial relief options it can offer and how it can help to boost the economy and preserve livelihoods within its means, and without placing too great a burden on residents and ratepayers.
Approximately R10,3 billion has helped to protect and stimulate the local economy:
- R4,1 billion paid to suppliers within 30 days in April and May
- More than R4 billion in tenders issued in April, May and June
- R2,25 billion in purchase orders issued in April, May and June
- More than 9 000 informal trading permits issued
- 3 000 business toolkits provided to small and medium businesses
- Payment arrangements and rates and service relief are available to qualifying residents
- No water restrictions for debt
- B&Bs and Guest Houses offered the option to halve their rates bill
Additional R13 billion boost from July
- Capital budget increased to R9,6 billion to help enable economic recovery and job creation
- R3,3 billion for rates and service relief
The City is projecting the COVID-19 impact to be more than R5,7 billion (to date and projected).
We are doing all of this, while maintaining high service delivery levels and keeping necessary service increases from 1 July 2020 down to an average of between 3,5% and 4,8%, which is the lowest metro increases for rates and service tariffs in South Africa that we are aware of.
‘We are doing our absolute best to assist with rates and services relief, payment arrangements, boosting our local economy and preserving the livelihoods of our people where we can. South Africa remains in economic dire straits and as a City government, we are looking at all support options within our means. Ensuring that we have a strong COVID-19 recovery budget that does not over-burden our residents and ratepayers is key. We have increased our capital budget to help reignite our economy and create jobs, reminiscent of the post-war programmes introduced in the previous century to rebuild and stimulate recovery.
‘The City has made available more than R3,3 billion in the new year for rates and service relief but we ask those who can still afford to pay, to please continue to do so. We will not be able to sustain indefinitely our high levels of service delivery, additional costs and reduced income from rates and services – already at approximately R1,1 billion. We thank the people of Cape Town for their support,’ said the City’s Executive Deputy Mayor and Mayoral Committee Member for Finance, Alderman Ian Neilson.
The City has cut expenditure in many areas that are not urgent, so as to ensure continued service delivery without undue rates and tariff increases. Internal funding sources from previous years have been fully used in this budget to help reduce the impact of the pandemic on residents and ratepayers.
Please continue to pay if you have the means and visit our customer offices if you need help with payments. To see which offices are open, please visit www.capetown.gov.za
Issued by Media Office, City of Cape Town, 9 July 2020
