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Cape Town residents are up in arms over a controversial plan by the City to increase municipal service levies by as much as 30%, sparking widespread outrage and fears of displacement – especially among middle-class property owners.
According to Daily Investor, the proposed increases, set to take effect in July, would link water and electricity charges to property values – pushing costs up significantly for homeowners whose properties are valued at more than R2 million. Thousands of residents have already voiced their anger, with more than 10 000 people signing online petitions demanding that hikes be capped in line with inflation, which is currently under 3%.
Mayor Geordin Hill-Lewis, who took office in 2021 and is seen by some as a future leader of the Democratic Alliance (DA), is standing firm on the proposal. He argues that Cape Town’s ageing infrastructure is in desperate need of major upgrades.
‘Our sewer and water systems are literally creaking,’ he told Cape Talk. ‘These aren’t cosmetic projects—this is the foundation of our city, and it needs investment on a scale of billions.’
The mayor insists the increases are necessary to fund upgrades to decades-old pipelines and to expand safety and cleaning services by hiring over 500 new staff members. He also defended the decision to tie charges to property values, saying that wealthier residents should shoulder more of the financial burden.
But critics say the plan could tip struggling homeowners over the edge. One online petition warns that retirees and single-income families earning just above R20 000 per month could lose their homes if the new tariff structure is implemented.
The timing of the proposal has also raised eyebrows, coming just a year ahead of municipal elections in South Africa. The DA, which has governed Cape Town since 2006, risks alienating its support base—especially in affluent suburbs that have traditionally backed the party.
Political analysts say the backlash could become a major talking point in the upcoming campaign. ‘It’s a gamble,’ said one local political observer. ‘The DA has built its brand on efficient governance. But if ratepayers start to feel squeezed, they may begin to look elsewhere.’
Despite the controversy, Hill-Lewis maintains that long-term planning must take precedence over short-term popularity. ‘We can’t risk reversing the progress we’ve made,’ he said. ‘Sometimes leadership means making unpopular decisions for the right reasons.’
Cape Town is regularly rated as South Africa’s best-run metro, drawing millions of tourists annually to its beaches, winelands and the iconic Table Mountain. But with infrastructure strain mounting, the city now faces a balancing act between development and affordability.
Click here to read the article on capetownetc.com.