How to qualify for the City’s R2.2 billion debt write-off initiative

The City of Cape Town has introduced a debt relief initiative as part of its 2025/26 budget, writing off approximately R2.2 billion in old municipal debt for qualifying residents and organisations.

The initiative aims to assist those financially affected by economic pressures while aimed at supporting long-term revenue sustainability.

To qualify for the debt write-off, municipal debt must date back to 30 June 2024 or earlier. Eligible applicants must enter into a six-month payment arrangement to settle any remaining debt. Failure to stick to the payment plan will result in the write-off being reversed.

Qualifying beneficiaries include:

Households in financial distress
Places of worship
Old age homes and shelters
Non-profit and public benefit organisations
Youth development organisations
Community museums, cemeteries, and similar institutions

“The City is committed to helping residents through difficult times while encouraging responsible account management,” said Councillor Siseko Mbandezi, Mayoral Committee Member for Finance.

Additional relief measures in the 2025/26 budget include:

Rates-free threshold increased to R450,000 for homes valued up to R7 million
Expanded access to rebates for pensioners and social grant recipients
Lower water and cleaning charges for mid-range properties
Lifeline electricity customers still benefit from stable pricing and free units

Residents can check eligibility by contacting the City via:

Email: payment.arrangements@capetown.gov.za
Call Centre: 0860 103 089
More info: www.capetown.gov.za

Residents can also refer to the contact details below for other related enquiries:

Rates rebates: rebate@capetown.gov.za
Indigent help: relief@capetown.gov.za