Cape Town – Mother City has upgraded its credit rating with Moody's Mayor Moody, Mayor Jordan Lewis announced.
Upgrading the city's credit ratings by Moody Investor Services on Friday (May 2, 2025) by the valuation department, follows Metro, which was placed in “Positive Outlook” in July 2024.
Mayor Hill Lewis said the agency pointed out that good governance allows Cape Town to fund key infrastructure investments and derives specific references to the city's infrastructure program.
The city plans to diversify its water sources and upgrade its infrastructure. Cape Town will invest ZAR23 billion in infrastructure over the next two years to increase its resilience. These initiatives aim to address vulnerabilities that have caused previous rating downgrades. We expect debt indicators to remain moderate compared to their international peers. Cape Town's strong financial management has slowly and steadily improved.
Hill-Lewis said Cape Town will invest South Africa's record R40bn in infrastructure for three years.
Low-income households will benefit directly from 75% of infrastructure spending.
The mayor said the city estimated that these investments will create 130,000 construction-related jobs over three years, based on the current situation in the subway, with SA's lowest unemployment rate.
“We are very welcome to upgrade this review. It's a celebration moment and something we've been working on for a long time,” Mayor Hill Lewis said.
“Cape Town has already invested billions of Rs in better water, sanitation, electricity, roads and other infrastructure.
“Now, this latest valuation upgrade will allow us to do even less by reducing fee payers' borrowing costs and strengthening the city's ability to provide cost-effective funding for record-breaking infrastructure investments.
“Our city has long been motivated by rating agencies, rather than Tar Cape Town, which has the same financial brush as other cities where finances are falling apart,” Mayor Hill Lewis said.
“Cape Town is an outstanding investment partner and an example of excellent governance.
“This rating upgrade now asserts Cape Town as the regional major destination for investment by global and local financial institutions.”
Mayor Hill Lewis said highlights of infrastructure investment over the next three years:
Upgrades of more than R6 billion in wastewater treatment, more than R2.5 billion in new water projects, SA's largest sewer upgrades in Cape Flat Bulk Sewer, and Phillippi, Milnerton and Helderberg are “trapping” sewer lines. An additional R4.5 billion for major expansions in southeast Myciti from Khayelitsha and Mitchells Plains to Southern Suburbs R5 billion of electric grid upgrades and maintenance from Khayelitsha and Mitchells Plain is preparing for the future R3.5 billion R3.5 billion in road maintenance, upgrades, upgrades, upgrades, upgrades, and commain relief projects.
“The city's 10-year infrastructure pipeline is being evaluated at R120bn, which is estimated to be funded by a blend finance model that leverages the city's healthy balance sheet and a blend finance model that utilizes funding from local and international markets,” Mayor Hill Lewis said.
He said the city council has approved R35 billion for infrastructure finance from Nedbank to major power grid upgrades from German development banks and KFW, as well as $150 million worth of development financing from International Finance Corporation (IFC) and EUR 100 million from Agence Francaise de Development (AFD).
