African Development Bank Group (AfDB) and Nedbank Group have signed a landmark deal to boost access to affordable housing in South Africa and strengthen trade across the continent.
The financing package comprised two components: a ZAR 2.5 billion social bond investment in Nedbank Group Limited and a $60 million trade finance Risk Participation Agreement with Nedbank Limited of South Africa.
Together, the initiatives aimed to narrow the continent’s trade finance gap, accelerate intra-African trade, and improve access to housing—two essential drivers of inclusive economic growth.
The social bond is listed on the Johannesburg Stock Exchange, with proceeds channeled through Nedbank’s Sustainable Finance Fundraising Framework.
Funding will prioritise affordable housing for women and first-time homeowners, as well as green-certified units, reinforcing the Bank and Nedbank’s shared commitment to gender equality, climate resilience, and financial inclusion. The bond will contribute to achieving AfDB ‘s vision for inclusive growth.
“This partnership builds on our shared commitment to drive financial access for underserved communities and transform living conditions across South Africa.It marks a significant milestone in our nearly two-decade relationship with Nedbank Group, unlocking critical financing where it’s needed most while strengthening our financial system’s resilience,” AfDB ‘s Director General for Southern Africa, Kennedy Mbekeani said.
The $60 million trade finance Risk Participation Agreement will provide crucial credit risk cover for Nedbank’s partnership with local banks issuing documentary letters of credit and similar trade instruments across the continent, including in Low-Income Countries and Transition States. The mechanism will help close the continent’s trade finance gap and accelerate intra-African trade.
“This landmark partnership with the AfDB Group represents a pivotal step in our drive to deliver real impact for communities across South Africa and the continent. By mobilising funding for affordable housing, especially 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. It underscores our commitment to enabling financial access, fostering climate resilience, and driving economic transformation through innovative, purpose-driven sustainable financing,” Chief Executive, Nedbank Group, Jason Quinn said.
The AfDB ‘s Director for the Financial Sector Development Department, Ahmed Attout, said: “We are proud of our shared commitment to sustainable financing, particularly through local debt capital markets. This intervention builds on our previous support in 2020, when we invested in Nedbank’s inaugural green bond to support renewable energy access in South Africa. It also demonstrates the Bank’s leading role in bridging the continent’s trade finance gap.”
The initiative aligns with AfDB ‘s Ten-Year Strategy (2024 – 2033) to transform African economies through industrialisation, regional integration, and improved quality of life for all Africans.
