Menu

The African Development Bank Group (AfDB) and Nedbank Group have signed a deal to boost access to affordable housing in South Africa and strengthen trade across the continent.

The financing package comprises two components: a ZAR 2.5 billion (circa US$150 million) social bond investment in Nedbank Group Limited and a $60 million trade finance Risk Participation Agreement with Nedbank Limited of South Africa.

Together, the initiatives aim to narrow Africa’s trade finance gap, accelerate intra-African trade, and improve access to housing – two essential drivers of inclusive economic growth, AfDB said.

The social bond is listed on the Johannesburg Stock Exchange, with proceeds channelled through Nedbank’s Sustainable Finance Fundraising Framework. Funding will prioritise affordable housing for women and first-time homeowners, as well as green-certified units, reinforcing the AfDB and Nedbank’s shared commitment to gender equality, climate resilience, and financial inclusion. 

AfDB added that the bond will contribute to achieving its vision for inclusive growth.

The $60 million trade finance Risk Participation Agreement will provide crucial credit risk cover for Nedbank's partnership with local banks issuing documentary letters of credit and similar trade instruments across the continent, including in Low-Income Countries and Transition States. 

AfDB noted the initiative aligns with its Ten-Year Strategy (2024 – 2033) to transform African economies through industrialisation, regional integration, and improved quality of life for all Africans.