The City of Cape Town has been helping qualifying residents, organisations and businesses impacted by economic pressures and the Covid-19 crisis, by making relief of more than R3 billion per year over the last few years available. Now we’re taking it further with payment incentives and debt write off of approximately R4,1 billion – a first for the City. This action has been taken due to the continued severe impact of Covid-19 on lives and livelihoods and the much slower than expected economic recovery over the past year. With an anticipated Covid-19 resurgence, the City is acting to alleviate further hardship where at all possible.

Council approval today, 27 May 2021, means debt write off actions for qualifying debtors will begin immediately, over phases.

This is made possible by the many loyal residents and business who are able to pay and continue to do so, thus enabling the City to provide relief to struggling residents, businesses and organisations.

The City is hoping to improve the culture of payment with the incentives offered and the debt write-off sweetener, helping debtors sleep easier at night.

Qualifying customers should contact the City. They will be informed whether they qualify when visiting the customer interaction centres or when contacting the respective call centres with account enquiries or when wanting to make a payment arrangement.

This is over and above the allocated rates and services relief of R3,4 billion in the new financial year.

Covid-19 relief initiatives remain in place for those who have been paying but need help now.

‘This action, which involved an in-depth, legally vetted and well-deliberated process, is only possible because of the trust there is in the City and the resultant high payment ratio for rates and services, which is unparalleled in South Africa. This is helping to keep the City sustainable and means we are in the position to assist qualifying debtors out of humanitarian considerations.
 
‘It is hoped that these incentives and debt-write offs will create a stronger culture of payment, while at the same time helping our residents who have old City debt to sleep easier at night. This would make the City more resilient and sustainable going forward.

‘It is important to protect municipal income, for without it, the City will not be able to provide basic and essential services. One way of protecting income and making the City more sustainable is to provide incentives to encourage a culture of payment.
 
‘We can’t do this without our loyal residents and without the support of those who are able to pay and continue to do so. We are very grateful to them. Importantly, there is also assistance available to those who have been paying, but need help now due to the lingering impact of Covid-19 on their finances. These cases continue to be considered on application to the City, on a case-by-case basis via the Covid-19 relief initiatives. The City will continue to operate in a manner that is sustainable, that does not jeopardise service delivery and that sees to it that those who qualify for support are provided with relief,’ said the City’s Mayoral Committee Member for Finance, Alderman Ian Neilson. 

Source: City Of Cape Town