AfDB Nedbank housing and trade deal backs affordable homes in South Africa and expands trade finance to close Africa’s funding gap

The African Development Bank Group and Nedbank Group have signed a landmark financing agreement aimed at expanding access to affordable housing in South Africa and strengthening trade flows across the African continent.

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The partnership, announced in Johannesburg, comprises a dual financing package including a ZAR 2.5 billion social bond investment in Nedbank Group Limited and a $60 million trade finance Risk Participation Agreement with Nedbank Limited.

AfDB officials said the combined initiatives are designed to address two critical development challenges in Africa: limited access to affordable housing and a persistent trade finance gap that constrains intra African trade and economic growth.

The social bond, listed on the Johannesburg Stock Exchange, will be channelled through Nedbank’s Sustainable Finance Fundraising Framework.

Proceeds will prioritise affordable housing projects, with a specific focus on women and first time homeowners, as well as green certified housing units.

The African Development Bank said the bond reinforces shared commitments to gender equality, climate resilience and financial inclusion, while supporting the Bank’s broader vision of inclusive growth across its regional member countries.

AfDB Director General for Southern Africa, Kennedy Mbekeani, described the agreement as a significant milestone in the long standing relationship between both institutions.

Kennedy Mbekeani said the partnership would unlock critical financing for underserved communities, improve living conditions in South Africa and strengthen the resilience of the financial system, noting that the collaboration spans nearly two decades.

The second component of the deal, a $60 million trade finance Risk Participation Agreement, will provide credit risk cover for Nedbank’s partnerships with local banks issuing documentary letters of credit and similar trade instruments across Africa.

According to the AfDB, the facility will support trade activities in several countries, including Low Income Countries and Transition States, helping to close Africa’s trade finance gap and accelerate intra African commerce.

Nedbank Group Chief Executive, Jason Quinn, said the agreement represented a pivotal step in delivering tangible impact for communities across South Africa and the continent.

Jason Quinn said the partnership would mobilise funding for affordable housing, particularly for women and first time buyers, while strengthening trade finance support for local banks.

He added that the initiative underscored Nedbank’s commitment to sustainable finance, climate resilience and economic transformation.

AfDB Director for the Financial Sector Development Department, Ahmed Attout, said the deal builds on previous cooperation between both institutions, including the Bank’s investment in Nedbank’s inaugural green bond in 2020 to support renewable energy access.

Ahmed Attout said the agreement also demonstrates the African Development Bank’s leading role in developing local debt capital markets and bridging Africa’s trade finance gap.

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The initiative aligns with the AfDB’s Ten Year Strategy for 2024 to 2033, which focuses on industrialisation, regional integration and improving quality of life across Africa.