The African Development Bank Group and Nedbank Group have signed a multi-billion-rand financing partnership aimed at expanding access to affordable housing in South Africa and increasing trade finance across the African continent. The agreement brings together housing finance and trade facilitation as part of a broader push for inclusive economic growth.
The funding package has two main elements. The first is a ZAR 2.5 billion social bond investment in Nedbank Group Limited. The second is a $60 million trade finance Risk Participation Agreement with Nedbank Limited of South Africa. Together, the initiatives are intended to address Africa’s trade finance gap, support intra-African trade, and widen access to housing, particularly for underserved groups.
The social bond is listed on the Johannesburg Stock Exchange, with proceeds directed through Nedbank’s Sustainable Finance Fundraising Framework. According to the partners, funding will focus on affordable housing for women and first-time homebuyers, alongside green-certified housing units. The investment also aligns with wider goals around gender equality, climate resilience and financial inclusion, contributing to the African Development Bank’s strategy for inclusive growth.
Speaking in Sandton, South Africa, Kennedy Mbekeani, African Development Bank’s Director General for Southern Africa, said: “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.”
The $60 million trade finance Risk Participation Agreement is designed to provide credit risk cover for Nedbank’s collaboration with local banks issuing documentary letters of credit and similar trade instruments. The facility will operate across the continent, including in Low-Income Countries and Transition States, and is expected to support increased trade flows and reduce financing constraints.
Jason Quinn, Chief Executive of Nedbank Group, said: “This landmark partnership with the African Development Bank 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.”
Ahmed Attout, Director for the Financial Sector Development Department at the African Development Bank, added: “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 African Development Bank’s leading role in bridging the continent’s trade finance gap.”
The partnership supports the African Development Bank’s Ten-Year Strategy (2024–2033), which focuses on industrialisation, regional integration and improving quality of life across Africa.
