The African Development Bank Group (AfDB) and Nedbank Group have announced a landmark financing agreement aimed at improving access to affordable housing in South Africa and expanding trade across Africa.

The partnership consists of two components: a R2.5-billion social bond subscription through Nedbank’s Sustainable Finance Fundraising Framework, and a $60-million trade finance Risk Participation Agreement with Nedbank.

The social bond, listed on the JSE, will prioritise funding for affordable housing targeted at women and first-time buyers, as well as green-certified units. The initiative aligns with both institutions’ goals of promoting gender equality, climate resilience, and financial inclusion.

“This partnership builds on our shared commitment to drive financial access for underserved communities and transform living conditions across South Africa,” said Kennedy Mbekeani, AfDB director general for Southern Africa. “It marks a significant milestone in our nearly two-decade relationship with Nedbank, unlocking critical financing where it’s needed most while strengthening our financial system’s resilience.”

The $60-million trade finance facility will provide risk coverage for Nedbank’s partnerships with local banks issuing letters of credit and other trade instruments, including in low-income and transition economies. AfDB said the mechanism will help close Africa’s trade finance gap and accelerate intra-African trade.

Nedbank CEO Jason Quinn said the agreement 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 and supporting trade finance for local banks, we are helping unlock opportunities for inclusive growth and sustainable development.”

The initiative supports the AfDB’s Ten-Year Strategy (2024–2033), which seeks to transform African economies through industrialisation, regional integration, and improved living standards. By combining housing finance with trade facilitation, the partnership aims to promote inclusive and sustainable economic development across the continent.