The Minister of Public Works & Infrastructure, Dean Macpherson, has welcomed the City of Cape Town’s announcement that it invested R12.24 billion in capital projects during the 2025/26 financial year, saying that the city is setting an example for the rest of the country of how public infrastructure investment can drive economic growth which creates thousands of new jobs.

While the final figure remains subject to the completion of financial reconciliations, the City has indicated that the amount is close to final and represents the highest annual capital expenditure reportedly achieved by a South African municipality. The investment is more than double the approximately R6 billion in annual capital expenditure that the City was able to achieve at the beginning of the current municipal term and surpasses the infrastructure spending undertaken by municipalities in preparation for the 2010 FIFA World Cup.

Minister Macpherson said Cape Town’s achievement demonstrated the important role that capable municipalities could play in driving economic growth by investing in the infrastructure required by residents and businesses.

“Cape Town is demonstrating what can be achieved when a government prioritises infrastructure investment, properly plans its projects and builds the institutional capacity required to turn capital budgets into construction sites. Public infrastructure investment is one of the most effective ways to stimulate economic activity and create jobs. Every construction project supports contractors, engineers, artisans, suppliers and workers, while the completed infrastructure enables businesses to grow, communities to develop and further investment to take place,” Minister Macpherson said.

“The lesson from Cape Town is that declining infrastructure and underspent capital budgets are not inevitable. Through capable administration, credible project pipelines and disciplined implementation, municipalities can substantially increase infrastructure delivery and ensure that public funds translate into visible improvements in communities. This should serve as an example to municipalities across South Africa. Our cities and towns must become engines of infrastructure investment that create jobs, unlock economic opportunities and ensure that services keep pace with population growth.”

The Minister said the City’s achievement supported the Department of Public Works & Infrastructure’s vision of turning South Africa into a construction site by accelerating investment and ensuring that infrastructure projects move from planning into implementation.

He said he aims to use lessons from the City of Cape Town’s infrastructure investment to support other municipalities countrywide through Infrastructure South Africa’s Adopt-AMunicipality pilot programme.

“We want to see shovels in the ground and cranes in the sky in every part of the country. Cape Town’s investment shows what is possible when infrastructure is treated as a catalyst for growth rather than simply another area of government expenditure. By investing boldly in infrastructure, strengthening implementation capacity and ensuring that projects are successfully delivered, governments across South Africa can create thousands of jobs, restore confidence in the State and build a better South Africa.”