The initiative, part of Cape Town City Council’s 2025/26 budget, is worth about R2.2 billion in old debt.
The programme is aimed at helping households and organisations recover from ongoing economic pressures while ensuring the metro remains financially sustainable.
What the debt write-off means
The plan allows qualifying residents and organisations to have outstanding municipal debt – incurred up to 30 June 2024 – written off.
In return, they must commit to paying their future monthly accounts through a formal payment arrangement.
“There has not been a significant improvement in the economy since the Covid-19 pandemic due to national and global economic shifts,” said the City’s Mayco Member for Finance, Councillor Siseko Mbandezi.
“This has had a detrimental impact on the ability of many residents, across various income and property value categories, to pay their municipal accounts.”
Who in Cape Town qualifies?
The debt write-off applies to:
- Homeowners with properties valued between R450 000 and R7.5 million
- Indigent customers and indigent properties with zero valuation
- Pensioners and social grant recipients
- Non-profit organisations, animal shelters, old-age homes, cemeteries and crematoria, social housing and youth development organisations, community museums
- Public Benefit Organisations
Conditions you must meet
Applicants must enter into a payment arrangement for their most recent debt. Future monthly bills must be paid on time to prevent sliding back into debt.
The City of Cape Town stressed that the programme is designed to incentivise a culture of payment, ensuring service delivery can continue for all.
Thanks to strong payment levels, Cape Town has maintained a collection rate of above 95%, reaching 97.83% by June 2025.
“It should be noted that write offs will be reversed if payment arrangements are not adhered to,” added Mbandezi.
How to apply
Residents can check if they qualify by contacting the City through the following channels:
Email (payment arrangements): payment.arrangements@capetown.gov.za
Email (rates rebates): rates.rebate@capetown.gov.za
Email (indigent relief): indigent.relief@capetown.gov.za
Call Centre: 0860 103 089
In person: Visit your nearest City of Cape Town customer walk-in centre
Will this scheme make a major difference for those in debt?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
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