South Africa signs $200 million NDB loan for Olifants water project

South Africa and the New Development Bank signed a USD 200 million loan agreement for Stage 1 of the Olifants Management Model Program, National Treasury announced on September 25, 2026. The amount is a loan for Stage 1, not the cost of the wider programme.

What Stage 1 is intended to serve

The Stage 1 scheme is intended to take water from Flag Boshielo Dam on the Olifants River for industrial raw-water users and treatment works serving Mogalakwena Local Municipality in Limpopo. Its commercial relevance lies in that planned supply to industrial users, alongside water destined for municipal treatment works.

Financing terms and delivery target

National Treasury states that the loan has an 11-year tenor, including a three-year grace period, with interest set at daily SOFR plus 0.985 percentage points. These are the stated terms of the Stage 1 loan.

The New Development Bank identifies the Department of Water and Sanitation and Badirammogo Water User Association as the project implementation entities. Its project page gives an end-2028 target for completion.