Investment in South Africa’s Limpopo Province Aims to Boost Water Security. Johannesburg, South Africa — Climate Fund Managers (CFM) has approved a USD 86. 2 million mezzanine debt investment to strengthen water security in South Africa’s water-stressed Limpopo Province.
The funds, provided by the Construction Equity Fund of the EU — supported Climate Investor Two (CI2), will support the first two stages of the Olifants Management Model Programme (OMMP).
The OMMP is a significant infrastructure initiative addressing the chronic water shortage in regions experiencing rapid industrial expansion, population growth, and climate — related drought. Developed by the Badirammogo Water User Association (BWUA), the programme aims to expand bulk raw water supply to commercial and industrial users, as well as potable water supply to communities across the Northern and Eastern Limbs of the Bushveld Igneous Complex (BIC).
The BIC, a critical mineral region, supports thousands of jobs and substantial export earnings, making reliable water supply crucial for both local communities and the national economy.
The investment will also bolster climate resilience in the region. Climate Fund Managers, a joint venture between South Africa’s Sanlam InfraWorks and the Dutch development finance institution FMO, will deploy the funds.
CI2, a USD 1 billion blended finance fund, combines public and private capital to invest in water, waste, and oceans infrastructure in Africa, Asia, and Latin America.
The USD 86. 2 million mezzanine investment will enhance the OMMP’s bankability, enabling senior commercial debt from Standard Bank, Nedbank, and Absa, the appointed co-Mandated Lead Arrangers, to advance the senior debt package for the first stage of the project.
The first two stages of the OMMP will expand the region’s bulk raw water backbone through new pipelines, water treatment works, and supporting infrastructure, powered by renewable energy systems. Once operational, the project is expected to improve access to safe water for approximately 390,000 people and ensure reliable supply for industrial and mining users central to the region’s economic activity.
The initiative aligns with South Africa’s National Water Resource Strategy and its Nationally Determined Contribution (NDC), focusing on climate adaptation, improved water security, and modernized bulk infrastructure.
Darron Johnson, Regional Head of Africa at Climate Fund Managers, emphasized the importance of the OMMP in securing reliable water supply in a region that is both economically significant and increasingly exposed to climate — related water stress. Dr.
Kobus van Duvenhage, CEO of BWUA, highlighted the significance of water security for the region’s economic and social well-being, noting that the OMMP is a significant step forward in meeting this need through collaboration between various stakeholders.
Further details are expected as the project progresses.
