AfDB, Nedbank Sign Landmark Deal to Boost Housing and Trade Across Africa

The joint initiative targets two critical drivers of inclusive growth—housing access and intra-African trade—both central to the AfDB’s long-term development strategy.

The African Development Bank Group (AfDB) and Nedbank Group have announced a landmark agreement aimed at expanding affordable housing in South Africa and strengthening trade finance across the African continent. The package combines a ZAR 2.5 billion social bond investment and a US$60 million trade finance Risk Participation Agreement, marking a major milestone in the nearly 20-year partnership between the two institutions.

The joint initiative targets two critical drivers of inclusive growth—housing access and intra-African trade—both central to the AfDB’s long-term development strategy.

ZAR 2.5 Billion Social Bond to Expand Affordable, Green, and Inclusive Housing

The AfDB’s investment in Nedbank’s ZAR 2.5 billion social bond—listed on the Johannesburg Stock Exchange—will channel funds through Nedbank’s Sustainable Finance Fundraising Framework. The proceeds will prioritize:

• Affordable housing for women

• Access for first-time homebuyers

• Green-certified housing units

• Financial inclusion for underserved communities

The financing will help accelerate South Africa’s push for climate resilience and support communities historically excluded from formal housing markets.

AfDB’s Southern Africa Director General Kennedy Mbekeani emphasized the transformative impact:

“This partnership builds on our shared commitment to drive financial access for underserved communities and transform living conditions across South Africa.”

US$60 Million Trade Finance Agreement to Boost Intra-African Trade

The second component is a US$60 million Trade Finance Risk Participation Agreement, designed to:

• provide credit-risk coverage for Nedbank’s trade finance partnerships

• support local banks that issue letters of credit and similar trade instruments

• reach Low-Income Countries and Transition States

• reduce Africa’s estimated US$81 billion annual trade finance gap

• strengthen regional supply chains and intra-African commerce

Nedbank Group Chief Executive Jason Quinn highlighted the broader development impact:

“By mobilising funding for affordable housing and supporting trade finance for local banks, we are helping unlock opportunities for inclusive growth and sustainable development.”

Building on a Track Record of Sustainable Financing

This agreement follows the AfDB’s 2020 investment in Nedbank’s inaugural green bond to support renewable energy in South Africa. It reflects both institutions’ commitment to climate-aligned, inclusive, and innovative finance.

AfDB Director for Financial Sector Development Ahmed Attout noted:

“This intervention demonstrates our leading role in bridging the continent’s trade finance gap and strengthening local debt capital markets.”

Aligned with AfDB’s Ten-Year Strategy (2024–2033)

The partnership advances AfDB goals for:

• industrialization

• regional integration

• improved livelihoods

• sustainable, inclusive economic transformation

By combining affordable housing finance with strengthened trade facilitation, the agreement supports broader socio-economic development across the continent and boosts resilience in local financial systems.

A Major Boost for Inclusive Growth

The AfDB–Nedbank initiative is poised to:

• improve living conditions for thousands of households

• expand economic opportunities for women

• create jobs in housing construction and trade

• strengthen continental value chains

• mobilize sustainable financing for long-term development

Together, these interventions represent a powerful, purpose-driven model for accelerating Africa’s progress toward inclusive, climate-smart economic growth.