Cape Town's R31.9 Million Rollover: A Test of Political Will for the Poor

The City of Cape Town has approved a R31.9 million allocation from its Capital Replacement Reserve to fund unfinished projects from the 2025/26 financial year, a move that has reignited fierce debate about service delivery to poor and marginalised communities. The adjustment budget, tabled at a council meeting on Thursday, comes as the city awaits the outcome of rollover applications to the National and Provincial Treasury.

According to a document tabled in the council meeting, several capital projects funded with conditional grants were not implemented or completed by June 30. No provision had been made for these projects in the 2026/27 capital budget, leaving the city scrambling to find interim funding.

What projects are affected by the rollover?

The report detailed proposed rollovers across several directorates. The Urban Mobility Directorate sought R44 million, while the Energy Directorate proposed R384,069 in unconditional grant funding and R546,749 in additional funds. The Water and Sanitation Directorate requested R8.5 million in private donations. In total, the net increase amounts to R44.4 million in capital grants and donation rollovers across various directorates.

Mayoral committee member for finance Siseko Mbandezi defended the adjustment budget, saying it was designed to allow committed projects to continue into the new financial year without disruption.

I want to emphasise that these adjustments will have no detrimental impact on the provision of basic services. Indeed, the budget continues to demonstrate the City's commitment to investing in the infrastructure and services on which the daily lives of Capetonians depend, Mbandezi said.

Mbandezi noted that the adjusted capital programme now amounts to approximately R13.375 billion for the 2026/27 financial year, an increase of R288 million from the original budget. He proposed drawing R31.9 million from the Capital Replacement Reserve to provide interim funding while the city awaits the outcome of its rollover applications.

ANC councillor: Lack of political will to serve the poor

ANC councillor Lonwabo Mqina delivered a scathing critique, arguing that nothing prevents the city from fulfilling its obligations to residents except a lack of political will to serve the poor and marginalised.

It is evident from the items that were not done, if not all of them, are from the African and Coloured communities, which are poor. The city must do away with the deliberate, perpetual use of legislation year in year out to avoid deliberate services to our people, Mqina said.

Mqina's comments highlight a recurring pattern in Cape Town's budget cycles, where projects serving predominantly Black and Coloured communities face repeated delays and funding shortfalls. This is not merely an administrative issue; it is a question of priorities and accountability.

GOOD Party: Communities cannot wait indefinitely

GOOD Party MP Siyabulela Mamkeli acknowledged that the adjustment budget admitted to delays caused by contractor failures, procurement delays, capacity constraints and project delays. He warned that communities cannot continue to wait while budgets remain unspent.

The City cannot delegate when it comes to spending where residents need it most. Communities cannot wait indefinitely while the budget remains unspent on projects that are rolled over. Residents are asking for the basic proper roads, access to water, sanitation and electricity, he said.

Mamkeli's remarks underscore the daily realities facing many Capetonians who still lack access to basic services decades after the end of apartheid. The question is not whether the city has the resources, but whether it has the will to deploy them where they are needed most.

DA defends the adjustment budget

The DA's Thomas Welz came to the defence of the adjustment budget, arguing that it ensures projects already approved continue to move forward at pace.

This budget ensures continuity and delivery of services to all residents, Welz said.

However, for critics, the repeated rollovers and delays tell a different story. They see a city that continues to prioritise certain communities over others, using bureaucratic mechanisms to defer obligations to the poorest residents.

What happens if the rollover is not approved?

Mbandezi said that should the rollover not be approved, the city will continue funding eligible committed projects from its reserves. This provides some assurance, but it also raises questions about the sustainability of relying on reserves to cover what should have been completed in the previous financial year.

Municipalities are required to apply for rollovers of unspent conditional grants by August 31 each year, with outcomes communicated in November. The city's reliance on this mechanism has become a recurring feature of its budget cycles, prompting concerns about planning and execution capacity.

What does this mean for Cape Town's poor communities?

For the African and Coloured communities that Mqina referenced, the adjustment budget is another chapter in a long history of delayed services and unmet promises. The pattern is familiar: projects are announced, funding is allocated, and then delays occur, with the poorest residents bearing the brunt of the consequences.

The city's commitment to investing in infrastructure is clear on paper, but the execution tells a different story. As Mamkeli noted, residents are not asking for luxury; they are asking for basic roads, water, sanitation and electricity. These are not unreasonable demands in a city that prides itself on being one of Africa's most developed urban centres.

The R31.9 million allocation from the Capital Replacement Reserve is a stopgap measure, not a solution. The real question is whether the city will address the systemic issues that lead to repeated rollovers and delays, or whether it will continue to use legislation and bureaucratic processes to defer its obligations to the poor.

As the city awaits the Treasury's decision in November, the eyes of Cape Town's marginalised communities remain fixed on the council. They have heard the promises before. What they need now is action, not another adjustment budget.