The African Development Bank Group and Nedbank Group have signed a landmark multi-billion financing partnership aimed at expanding affordable housing in South Africa while strengthening trade across Africa.
Source: Pexel.
The deal combines a R2.5 billion social bond investment with a $60 million trade finance risk participation agreement, targeting inclusivity, first-time buyers, continental trade growth and broader economic transformation.
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.
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.”
Bridging the trade finance gap
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 countries and transition states. This mechanism will help bridge the continent’s trade finance gap and accelerate intra-African trade.
“This groundbreaking partnership with the African Development Bank Group represents a pivotal step in our commitment to making a real impact in communities in South Africa and across the continent.
Nedbank Group CEO Jason Quinn 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.”
Ahmed Atout, Director of Financial Sector Development at the African Development Bank, said:
“This intervention builds on our previous support in 2020, when we invested in Nedbank’s first green bond to support access to renewable energy in South Africa. It also demonstrated the African Development Bank’s leading role in closing the continent’s trade finance gap.”
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.
