This agreement consists of two key elements.
A R2.5 billion social bond investment in Nedbank Group Limited, listed on the Johannesburg Stock Exchange. Proceeds will be channeled through Nedbank’s Sustainable Finance Funding Framework. $60 million trade finance risk participation agreement with Nedbank Limited. Covering critical credit risks for trade finance products across Africa, including low-income and transition countries.
Promoting affordable housing and financial inclusion
The Social Bond will prioritize funding for affordable housing, with a particular focus on women, first-time homeowners and green-certified homes. This is consistent with both institutions’ commitment to gender equality, climate resilience and financial inclusion. This initiative is expected to significantly contribute to the African Development Bank’s vision of inclusive growth and improved living conditions.
Kennedy Mbekeani, Southern Africa Director at the African Development Bank, said: “This partnership is based on a shared commitment to advance financial access to underserved communities and transform 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.”
Strengthening trade finance across Africa
The $60 million trade finance risk participation agreement will allow Nedbank to partner with regional banks to issue written letters of credit and similar trade products. The mechanism aims to close Africa’s persistent trade finance gap and accelerate intra-African trade, which is a key driver of economic integration and industrialization.
Jason Quinn, chief executive of Nedbank Group, said: “By mobilizing capital into 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.” “This underscores our commitment to enabling financial access, promoting climate resilience and driving economic transformation through innovative, purpose-driven and sustainable finance.”
Strategic alignment with Africa’s development goals
This initiative is closely aligned with the African Development Bank’s 10-year strategy (2024-2033), which focuses on transforming African economies through industrialization, regional integration and improving the quality of life for all Africans. By combining innovative housing finance and trade facilitation, this agreement sets a new standard for public-private cooperation in Africa’s development landscape.
“We are proud of our shared commitment to sustainable finance, particularly through municipal debt capital markets. This intervention builds on our previous support in 2020, when we invested in Nedbank’s first green bond to support renewable energy access in South Africa. It also demonstrates the African Development Bank’s leading role in closing the trade finance gap on the continent,” said Ahmed Atout, African Development Bank Director of Financial Sector Development.
Vision: Unlocking opportunities for Africa’s future
Partnerships like this between the African Development Bank and Nedbank are critical as Africa continues to pursue its ambitious goals for economic transformation. The agreement is poised to deliver tangible benefits to communities, businesses and economies across the continent by addressing both housing and trade finance shortages.
The main expected impacts are:
Increasing access to affordable green certified homes for women and first-time buyers Strengthening financial inclusion and resilience in South Africa’s housing market Strengthening support for intra-African trade and regional economic integration Climate resilience and progress towards the Sustainable Development Goals
This landmark agreement not only strengthens both institutions’ commitment to Africa’s sustainable future, but also sets a precedent for innovative, impact-driven financing across the continent.
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