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Collins Chabane Municipality Plans 10 New Townships and Historic NERSA Electricity Licence to Boost Revenue

Mayor Shadrack Maluleke outlines ambitious infrastructure and energy strategies, including solar power generation, to address service delivery challenges and expand the local revenue base.

Collins Chabane Municipality Plans 10 New Townships and Historic NERSA Electricity Licence to Boost Revenue
Limpopo news: Collins Chabane Municipality Plans 10 New Townships and Historic NERSA Electricity Licence to Boost Revenue. AI-generated image for illustrative and fair representation purposes only. Logos and symbols are the property of their respective owners. © South Africa Today

MALAMULELE, LIMPOPO — The Collins Chabane Local Municipality in Limpopo is set to establish 10 new townships and leverage a historic NERSA electricity licence to generate its own power, aiming to significantly expand its revenue base and improve service delivery for its residents.

The local government announcements come against the backdrop of a highly active electoral period. Special voting is currently underway ahead of Wednesday’s main voting day. The Electoral Commission (IEC) has urged special voters to confirm their designated voting stations before traveling, noting that arrangements may differ based on the approved vote type. The IEC reported a record 2.65 million approved special vote applications, marking a 131% increase compared to the 2021 local government elections.

Zooming in on the local landscape, the Collins Chabane Local Municipality is currently marking its 10th anniversary. Established in 2016, the municipality was formed by merging portions of the Thulamela Local Municipality and Makhado Local Municipality, bringing 97 villages under its administration. The creation of the municipality followed fierce contention from locals in Malamulele who felt neglected. While the demarcation board acceded to these demands, the process was not universally welcomed; in 2016, violent protests erupted in areas specifically around Vuwani, where residents wanted to remain part of the Makhado municipality.

A decade later, despite being established to resolve historical grievances, residents continue to report slow service delivery, crumbling infrastructure, and financial mismanagement.

Addressing these ongoing concerns, Mayor Shadrack Maluleke defended the municipality’s track record, emphasizing the unique challenges of governing a deeply rural area where many residents live below the poverty line, which inherently limits the municipality’s ability to collect revenue.

Highlighting infrastructure achievements, Mayor Maluleke stated that the municipality is currently the best in South Africa when it comes to constructing ring and access roads in rural communities. He reported that out of the 36 wards in the municipality, ring roads have been successfully built in 31 wards, with designs finalized for the remaining five to ensure construction begins as soon as possible.

To overcome the limitations of a constrained revenue base and reduce reliance on government grants, the municipality has launched an ambitious economic strategy. Mayor Maluleke confirmed that their primary target is to establish 10 new townships specifically designed to increase the local revenue base.

Furthermore, the municipality has been awarded an electricity licence from the National Energy Regulator of South Africa (NERSA). Mayor Maluleke noted that this makes Collins Chabane the first municipality in South Africa since the dawn of democracy to achieve such a milestone.

This groundbreaking licence enables the municipality to generate its own electricity—including the construction of solar plants—as well as distribute and trade power. According to the Mayor, this initiative will drastically reduce the local government’s reliance on Eskom, create new employment opportunities, and provide a sustainable, long-term boost to the municipal revenue base.

As the municipality looks toward the future, residents will head to the polls in just under two days to cast their ballots in the local elections. A total of 35 councilors will be chosen to fill the council seats, with some selected through the first-past-the-post system and the remainder drawn from party lists.