<\/p>\n
The funding will support the Mpumalanga Municipal Utility Reform Programme (MURP), a results-based financing initiative aimed at improving the efficiency, reliability and financial sustainability of public electricity and water services in selected municipalities across the province.<\/p>\n
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Under AfDB’s Results-Based Financing model, loan disbursements will be linked to independently verified improvements in utility performance and service delivery. Funding will only be released once agreed targets have been achieved.<\/p>\n
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The programme is designed to strengthen municipal services in coal-dependent communities affected by SA’s transition away from coal-fired power generation. Key objectives include reducing electricity and water losses, improving revenue collection, rehabilitating critical infrastructure and strengthening municipal utility management.<\/p>\n
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AfDB Vice President for Power, Energy, Climate and Green Growth Kevin Kariuki said the initiative could serve as a model for broader municipal reform. “Strong municipalities are fundamental to SA’s long-term development.”<\/p>\n
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Kariuki added: “By strengthening the financial sustainability of municipal utilities, this operation will improve the delivery of electricity and water services and build more resilient local institutions while establishing a replicable model for reforms that can strengthen municipalities across SA.”<\/p>\n
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AfDB Director of Renewable Energy and Energy Efficiency Daniel Schroth said the programme demonstrates how innovative financing can be used to drive reform. “Through this Results-Based Financing operation, backed by the UK’s Just Energy Transition Guarantee, the Bank is linking financing to verified results.”<\/p>\n
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Schroth added: “By combining performance-based contracts with independent verification, the programme will improve service delivery and support SA’s Just Energy Transition in coal-dependent communities.”<\/p>\n
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The AfDB financing is backed by a guarantee from the United Kingdom’s Foreign, Commonwealth and Development Office under the Just Energy Transition Partnership guarantee framework. The UK government also provided technical assistance during programme preparation.<\/p>\n
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Acting British High Commissioner to SA Lisa Weedon welcomed the initiative. “The UK welcomes the leadership shown by the South African government in advancing municipal utility reform.”<\/p>\n
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Weedon said: “MURP represents a practical partnership that demonstrates how innovative financing can help municipalities deliver more reliable services and create the conditions for greater investment and economic growth, while advancing SA’s Just Energy Transition.”<\/p>\n
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Implementation will be managed by the Development Bank of Southern Africa through a dedicated Programme Management Office under the oversight of the National Treasury and the Department of Cooperative Governance.<\/p>\n
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The programme will cover the municipalities of eMalahleni, Lekwa, Govan Mbeki and Mbombela, benefiting an estimated 1.2 million people. It will also support the Inkomati-Usuthu Catchment Management Agency over the five-year implementation period from 2026 to 2031.<\/p>\n
<\/p>\n
National Treasury Deputy Director-General for Intergovernmental Relations, Ogalaletseng Gaarekwe, said the programme is intended to test a model that can be expanded nationally. “We view MURP as a strategic intervention to strengthen and stabilise critical municipal services.”<\/p>\n
<\/p>\n
Gaarekwe added: “The programme will test a scalable support model to improve operations and maintenance, utility management and planning, and infrastructure and municipal capabilities.”<\/p>\n
<\/p>\n
Key interventions include smart metering, customer audits, rehabilitation of water and electricity networks, reduction of non-revenue water, pressure management, LED street-light retrofitting and alternative energy systems for public buildings.<\/p>\n
<\/p>\n
AfDB said the programme is expected to improve service delivery, strengthen municipal governance, create jobs, reduce greenhouse gas emissions and enhance climate resilience. As a pilot project, the initiative is also intended to provide a model for municipal utility reform that could be replicated across SA and other countries facing similar challenges.<\/p>\n
<\/p>\n
–AfDB\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":39862,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-39861","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"The African Development Bank (AfDB) has approved a $400 million loan to improve electricity and water services in Mpumalanga, supporting South Africa's (SA) Just Energy Transition and municipal reform agenda.\r\n","published_date":"","news_description":"The African Development Bank (AfDB) has approved a $400 million loan to improve electricity and water services in Mpumalanga, supporting South Africa's (SA) Just Energy Transition and municipal reform agenda.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39861\/revisions"}],"predecessor-version":[{"id":39863,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/39861\/revisions\/39863"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/39862"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=39861"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=39861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}