IFC and Nedbank Partner to Accelerate Green Building Financing in South Africa

In a bid to accelerate South Africa’s transition to a greener, more inclusive, and lower-carbon economy, the International Finance Corporation (IFC) has partnered with Nedbank Corporate and Investment Banking (CIB) to finance certified green buildings. This collaboration is not only aimed at supporting the country’s transition but also helps address its significant housing deficit.

Under the agreement, IFC will provide a senior loan of $200 million to Nedbank CIB, enabling the bank to scale its financing to developers of green buildings across South Africa's residential, commercial, industrial, and retail property sectors.

The green buildings financed under this partnership will meet IFC’s Excellence in Design for Greener Efficiencies (EDGE) certification or an equivalent standard, ensuring energy and water efficiency, as well as the use of sustainable construction materials. A significant portion of the loan, at least half, will be dedicated to financing affordable housing projects.

Also read: IFC and Grupo Equatorial Form Strategic Alliance to Upgrade Brazil's Power Grid

Impact of the Partnership

This partnership builds on the success of a previous collaboration, where IFC acted as an anchor investor in Nedbank CIB’s 2021 green bond issuance of R1.09 billion. The bond successfully supported the financing of 1,790 EDGE-certified units, including 1,305 affordable homes. The new loan facility will enable further scaling of this impact, expanding its reach to other real estate segments while addressing South Africa's housing and infrastructure needs.

Vanessa Murray, Divisional Executive of Property Finance at Nedbank CIB, highlighted the transformative impact of the green bond, which led to the creation of the bank's in-house EDGE expert team, the first of its kind in an African financial institution.

With the support of IFC, the team trained 21 Nedbank staff and 21 clients, helping to secure certification for landmark projects such as the Mall of Africa, the world’s largest EDGE-certified retail centre.

Driving Sustainable Finance and Housing Solutions

Claudia Conceiçao, IFC’s Regional Director for Southern Africa, said, “We are proud to partner with Nedbank CIB to expand certified green buildings in South Africa, including for affordable housing. This collaboration drives South Africa’s shift to a low-carbon economy while improving lives and communities. It underscores IFC’s commitment to sustainable finance that benefits both people and the planet.”

South Africa aims to cut emissions by 42% by 2025 and reach net zero by 2050, with green buildings key to this goal; an IFC loan, supported by a UK-IFC incentive, will help finance eco-friendly, affordable housing via Nedbank CIB.