The African Development Bank Group and Nedbank Group sign a landmark financing deal combining affordable housing finance with trade finance support to accelerate inclusive growth.
A Landmark Financing Package for Development Goals
The African Development Bank Group (AfDB) and Nedbank Group have signed a multi-billion-rand funding partnership designed to expand access to affordable housing in South Africa and strengthen trade across the African continent. The financing package includes two main components: a ZAR 2.5 billion social bond investment and a US$60 million trade finance Risk Participation Agreement (RPA) with Nedbank Limited of South Africa.
The combined initiative aims to narrow Africa’s trade finance gap, accelerate intra-African trade flows, and improve access to affordable housing, which the partners identify as critical drivers of inclusive economic growth and broader financial inclusion.
Social Bonds for Affordable Housing
The ZAR 2.5 billion social bond has been listed on the Johannesburg Stock Exchange and structured under Nedbank’s Sustainable Finance Fundraising Framework. Funding from the bond will be prioritised toward affordable housing solutions, with a specific focus on women and first-time homeowners, as well as green-certified housing units, aligning with commitments to gender equality and climate resilience.
“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,” said Jason Quinn, Chief Executive, Nedbank Group. “It underscores our commitment to enabling financial access, fostering climate resilience, and driving economic transformation through innovative, purpose-driven sustainable financing.”
Ahmed Attout, the African Development Bank’s Director for the Financial Sector Development Department, 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 African Development Bank’s leading role in bridging the continent’s trade finance gap.”
Trade Finance Risk Participation and Intra-African Commerce
Complementing the housing bond is a US$60 million trade finance Risk Participation Agreement. Under this structure, AfDB provides credit risk coverage that enhances Nedbank’s partnerships with local African banks issuing documentary letters of credit and similar trade instruments — essential tools for import-export operations.
By sharing risk with partner banks, the agreement aims to help close the continent’s trade finance gap, particularly in Low-Income Countries (LICs) and Transition States, where financing constraints often choke cross-border commercial activity.
Institutional Commitment to Sustainable Development
Kennedy Mbekeani, Director General for Southern Africa at AfDB, described the partnership as building on “our shared commitment to drive financial access for underserved communities and transform living conditions across South Africa.” He emphasised that it marks a major milestone in the nearly two-decade collaboration between AfDB and Nedbank.
The partnership also aligns with the AfDB’s Ten-Year Strategy (2024–2033), which seeks to transform African economies through industrialisation, regional integration and improved quality of life for all Africans — advancing sustainable, inclusive economic development.
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