By Ayomide Otitoju
The African Development Bank Group (AfDB) and Nedbank Group have signed a landmark financing agreement aimed at expanding access to affordable housing in South Africa and strengthening trade across the continent.
The package comprises a ZAR 2.5 billion social bond investment in Nedbank Group Limited and a $60 million trade finance Risk Participation Agreement with Nedbank Limited. The initiatives are designed to help bridge Africa’s trade finance gap, promote intra-African trade and improve access to housing, key pillars of inclusive economic growth.
The social bond, listed on the Johannesburg Stock Exchange, will be deployed through Nedbank’s Sustainable Finance Fundraising Framework. Proceeds will prioritise affordable housing for women and first-time homeowners, as well as green-certified housing units, underscoring the partners’ commitment to gender equality, climate resilience and financial inclusion.
“This partnership builds on our shared commitment to expanding financial access for underserved communities and improving living conditions across South Africa,” said Kennedy Mbekeani, AfDB’s Director General for Southern Africa. He described the deal as a milestone in the nearly 20-year relationship between the Bank and Nedbank Group.
The $60 million Risk Participation Agreement will provide credit risk cover to support Nedbank’s trade finance activities with local banks across Africa, including Low-Income Countries and Transition States. The facility is expected to ease constraints on trade finance and accelerate cross-border trade within the continent.
Nedbank Group Chief Executive, Jason Quinn, said the agreement would deliver tangible impact by supporting affordable housing and enabling trade finance for local banks. “It reflects our commitment to inclusive growth, climate resilience and sustainable economic transformation through innovative financing,” he said.
Also commenting, Ahmed Attout, AfDB’s Director for Financial Sector Development, said the deal builds on earlier collaboration, including the Bank’s investment in Nedbank’s inaugural green bond in 2020, and reinforces AfDB’s role in addressing Africa’s trade finance gap.
The agreement aligns with the African Development Bank’s Ten-Year Strategy (2024–2033), which focuses on industrialisation, regional integration and improving quality of life across Africa through sustainable and inclusive development.
