The African Bank Group of Development (BAD) and Nedbank Group take a major step forward in financing development in South Africa and across the continent. The two institutions signed an agreement described as historic, aimed at expand access to affordable housing and strengthen the financing of trade, two key drivers of inclusive and sustainable growth

The partnership is based on a system financial with a double component. It includes, on the one hand, an investment of 2.5 billion rand in a social bond issued by Nedbank Group Limited and, on the other hand, a financing risk participation agreement $60 million in business with Nedbank Limited. Together, these mechanisms aim to reduce the structural financing deficit. of trade in Africa and to stimulate intra-African trade, while improving access to housing.

Listed on the Johannesburg Stock Exchange, social obligation will allow resources to be channelled through the framework sustainable financing from Nedbank. The funds will be primarily oriented towards affordable housing, in particular for women and first-time buyers, as well as to certified ecological real estate projects. This approach reflects the joint commitment of both partners to gender equality, climate resilience, and financial inclusion.

For the African Development Bank, this initiative is fully in line with its vision of inclusive growth. ” This partnership marks an important step in our relationship of almost two decades with Nedbank Group,” said Kennedy Mbekeani, CEO for Southern Africa from the ADB. According to him, the agreement will make it possible to unblock critical funding for underserved communities, while strengthening the soundness of the financial system.

The second part, focused on the financing of trade, will provide credit risk coverage to transactions of Nedbank with local banks across the continent. It will concern including documentary letters of credit and other instruments commercial businesses, including in low-income countries and states in transition. This mechanism is designed to fill a major deficit that is holding back further development of intra-African trade.

On the Nedbank Group side, the agreement is perceived as a catalyst for economic transformation. “By mobilizing financing for affordable housing and by supporting the financing of trade, we are helping to unlock opportunities for inclusive growth ” said Jason Quinn, the group's chief executive officer. He also put in before the expected impact on climate resilience and development durable.

The African Development Bank underlines, for its part, the continuity of its commitment to finance durable. Ahmed Attout, Director of Financial Sector Development, recalled that this operation extends a previous investment made in 2020 in Nedbank's first green bond, dedicated to energies renewables.

Aligned with the 10-year strategy 2024-2033 of the ADB, this initiative illustrates the will of both partners to transform African economies. By combining housing finance and trade facilitation, the agreement paves the way for development economic more inclusive and sustainable at the scale of the continent.