Source: African Development Bank
The African Development Bank Group and Nedbank Group have signed a landmark agreement to boost access to affordable housing in South Africa and enhance trade across the continent.
The funding package consists of two components: a R2.5 billion social bond investment in Nedbank Group Limited and a $60 million trade finance risk participation agreement with South Africa’s Nedbank Limited.
Together, these initiatives aim to narrow Africa’s trade finance gap, accelerate intra-African trade and improve access to housing – two key drivers of inclusive economic growth.
The social bond is listed on the Johannesburg Stock Exchange and proceeds will be routed through Nedbank’s Sustainable Finance Funding Framework. The funding will prioritize affordable and green-certified homes for women and first-time homeowners, reinforcing the Bank and Nedbank’s shared commitment to gender equality, climate resilience and financial inclusion. This bond will help achieve the African Development Bank’s inclusive growth vision.
African Development Bank Southern Africa Director Kennedy Mbekeani said: “This partnership is based on a shared commitment to fostering financial access to underserved communities and transforming living conditions across South Africa.” “This is a significant milestone in our almost 20-year relationship with Nedbank Group, enabling us to access critical financing where it is needed most, while strengthening the resilience of our financial system.”
The $60 million trade finance risk participation agreement will provide significant credit risk coverage for Nedbank’s partnerships with regional banks that issue written letters of credit and similar trade instruments across the continent, including in low-income and transition countries. This mechanism will help bridge the continent’s trade finance gap and accelerate intra-African trade.
“This ground-breaking partnership with the African Development Bank Group represents a pivotal step in our commitment to make a real impact in communities in South Africa and across the African continent. By mobilizing capital for affordable housing, particularly for women and first-time buyers, and supporting trade finance for local banks, we are helping to unlock opportunities for inclusive growth and sustainable development,” said Jason Quinn, CEO of Nedbank Group. “This underscores our commitment to enabling financial access, promoting climate resilience and driving economic transformation through innovative, purpose-driven and sustainable finance.”
Ahmed Atout, Director of Financial Sector Development at the African Development Bank, said: “We are proud of our shared commitment to sustainable finance, particularly through municipal debt capital markets. This intervention builds on our previous investment in Nedbank’s first green bond to support renewable energy access in South Africa in 2020. It also demonstrates the African Development Bank’s leading role in closing the trade finance gap on the continent.”
This initiative is in line with the African Development Bank’s 10-year strategy (2024-2033) to transform African economies through industrialization, regional integration and improving the quality of life for all Africans. The agreement combines innovative housing finance and trade facilitation to drive inclusive and sustainable economic development across Africa.
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