Climate Fund Managers (CFM) has committed $86.2 million in mezzanine debt financing through the Construction Equity Fund of its Climate Investor Two facility to support the first two phases of the Olifants Management Model Programme (OMMP) in South Africa’s Limpopo Province.
The OMMP is a large-scale bulk water infrastructure initiative aimed at addressing one of South Africa’s most pressing challenges: ensuring a reliable water supply in regions facing rapid industrial growth, population expansion, and increasing climate-related drought risk. The programme is being spearheaded by the Badirammogo Water User Association (BWUA) and is designed to expand bulk raw water availability for commercial and industrial users, while also improving potable water access for local communities.
To accelerate implementation, BWUA is working in partnership with government agencies, private sector stakeholders, and financiers—including CFM—to mobilize the technical expertise and capital required for delivery. The first two phases of the OMMP will strengthen the region’s water infrastructure backbone through the construction of new pipelines, water treatment facilities, and associated systems. These will be complemented by renewable energy installations to power the most energy-intensive components, ensuring sustainability and reducing carbon emissions.
Commenting on the investment, Darron Johnson, Regional Head for Africa at Climate Fund Managers, said:
The OMMP addresses a critical barrier to South Africa’s development: securing dependable water supply in a region that is economically vital yet increasingly vulnerable to climate-related water stress. This investment illustrates the power of blended finance in accelerating essential infrastructure projects where they are most needed. Our mezzanine facility plays a catalytic role by enabling the full financing package required to advance construction of the OMMP’s initial phases. Through this programme, we are helping build climate resilience, protect jobs across the mining value chain, and expand access to safe water for households throughout Limpopo.
