The Democratic Alliance (DA) has lauded the City of Cape Town for its recent credit rating upgrade by Moody’s, saying it was a testament to the city’s robust financial management and dedication to effective service delivery.
This follows Moody’s Investor Services placing the city on a ‘positive outlook’ in July 2024, with the credit rating upgrade confirmed on 2 May 2025.
Moody’s commended the city for its exemplary governance and ambitious infrastructure plans, highlighting substantial investments in water, electricity, transport, and roads.
Notably, 75% of these investments are earmarked to benefit lower-income households, with an anticipated creation of 130,000 jobs over the next three years.
“The city plans to diversify water sources and upgrade infrastructure. Cape Town will invest ZAR23 billion in infrastructure over the next two years to enhance resilience. These initiatives aim to address vulnerabilities that caused the previous rating downgrade. We expect its debt metrics to remain moderate compared to international peers. Cape Town’s strong financial management has led to a slow but steady improvement,” Moddy’s said in a statement.
Willie Aucamp, DA national spokesperson, on Sunday praised Mayor Geordin Hill-Lewis and his team, saying “Cape Town’s achievements underscore the DA’s commitment to results-driven governance.”
“A stronger credit rating allows the city to secure loans more affordably, maximizing each rand. This translates to quicker, more cost-effective service delivery to ratepayers.”
Aucamp further commented: “Amidst financial turmoil in many municipalities, Cape Town demonstrates the potential of effective management and forward-thinking policies. This upgrade underscores Cape Town as an attractive investment destination and a national leader in meeting citizens’ needs.”
Moody’s said that “good governance enables the city to fund significant infrastructure investments,” specifically noting Cape Town’s plans to enhance water resilience and upgrade infrastructure.
The city intends to invest ZAR23 billion in infrastructure over the next two years, aimed at addressing past vulnerabilities and maintaining moderate debt metrics compared to global counterparts.
Hill-Lewis said he welcomed the ratings upgrade, saying the City is already making vital multi-billion rand investments in better water, sanitation, electricity, roads and other infrastructure.
“Now this latest ratings upgrade will enable us to do even more for less by bringing down the costs of borrowing for ratepayers and strengthening the City’s ability to cost-effectively fund our record infrastructure investment,” said Hill-Lewis.
‘Our city has long motivated for ratings agencies not to tar Cape Town with the same financial brush as other cities, where finances are collapsing. Cape Town is a standout investment partner and an example of good governance. This ratings upgrade now affirms Cape Town as the premier destination in our region for investment by global and local finance institutions.”
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