Financing infrastructure in secondary municipalities is one of South Africa’s most pressing challenges. Budget constraints, poor credit ratings, and limited access to capital all complicate development.
But with innovative municipal finance strategies, these challenges can be overcome.
The Challenge
A secondary municipality needed urgent funding to upgrade its aging water infrastructure. The project would benefit over 45,000 residents, but internal budgets couldn’t accommodate the scale of the investment.
Our Solution
MACALLAN CAPITAL stepped in with a comprehensive financial blueprint:
Designed a municipal bond origination plan
Secured R280 million through blended capital sources
Structured the deal to protect long-term affordability and repayment
Results
✅ Project fully funded in 6 months
✅ Completion ahead of schedule
✅ Improved water access for thousands
✅ Increased investor confidence in the municipality
Why It Worked
Our deep understanding of public finance law, coupled with capital market access and structuring expertise, enabled us to build trust with both the municipality and funders.
Conclusion
Infrastructure shouldn’t be limited by public coffers. With strategic partners like MACALLAN CAPITAL, municipalities can unlock meaningful progress.