IFC and Nedbank CIB Partner to Scale Green Buildings and Affordable Housing in SA

In a significant stride towards South Africa’s climate and housing goals, the International Finance Corporation (IFC) has announced a strategic partnership with Nedbank Corporate and Investment Banking (CIB) to finance a new wave of certified green buildings across the country. The $200 million senior loan facility aims to catalyze sustainable development while addressing South Africa’s housing shortage, particularly in the affordable housing segment, and accelerating the country’s transition to a low-carbon, inclusive economy.

This groundbreaking investment, anchored by IFC, targets multiple real estate sectors—residential, commercial, industrial, and retail—with a robust emphasis on energy efficiency, sustainable materials, and water conservation. All developments will be certified through the IFC’s Excellence in Design for Greater Efficiencies (EDGE) or equivalent green building standards.

A Climate-Aligned Response to South Africa’s Dual Crises

South Africa faces a dual challenge: a substantial housing deficit and ambitious climate targets. The government has committed to reducing greenhouse gas (GHG) emissions by 42% by 2025 and reaching net-zero emissions by 2050. Given that buildings globally contribute to almost 40% of energy-related GHG emissions, green buildings have become a strategic pillar of South Africa’s climate policy.

This partnership between IFC and Nedbank CIB supports these objectives by promoting the construction of environmentally sound buildings, which simultaneously cut carbon emissions and offer long-term economic and health benefits to residents and businesses alike.

Affordable Housing: The Heart of the Green Push

Crucially, at least 50% of the IFC loan will be directed toward affordable housing, ensuring that low-income families benefit from better living conditions and reduced utility costs. These homes will be designed with energy and water-saving features and built with sustainable construction materials, directly contributing to both social equity and environmental resilience.

Vanessa Murray, Divisional Executive for Property Finance at Nedbank CIB, emphasized the social impact:

“Under our 2021 green bond, we delivered 1,790 EDGE-certified homes, including 1,305 affordable units. This new facility will allow us to scale this impact significantly, reaching new real estate segments while continuing to address the country’s most pressing infrastructure needs.”

From Green Bonds to Institutional Innovation

The new facility builds on Nedbank CIB’s successful 2021 green bond, where IFC served as an anchor investor, contributing R500 million out of the total R1.09 billion issuance. That bond enabled a pioneering shift in South Africa’s green finance ecosystem.

A notable innovation from the previous partnership was the creation of Africa’s first in-house EDGE expert team within a financial institution. This group has trained 21 Nedbank CIB staff and 21 developers, building a strong local capacity to assess, certify, and guide green building initiatives.

These efforts contributed to the certification of landmark projects such as the Mall of Africa, which stands as the largest EDGE-certified retail development in the world—a testament to South Africa’s potential to lead in green innovation across all real estate segments.

A Global Vision with Local Roots

Claudia Conceiçao, IFC Regional Director for Southern Africa, underscored the broader mission:

“This collaboration with Nedbank CIB not only supports green buildings but also improves lives. We’re proud to contribute to a greener, fairer South Africa and demonstrate how sustainable finance can empower both people and the planet.”

To further support the initiative, the investment will benefit from a performance-based incentive (PBI) funded by the UK-IFC Market Accelerator for Green Construction (MAGC). This incentive will be passed on to developers, helping them cover the incremental costs of green design, certification, and energy-efficient technology.

Building a Sustainable Financial Ecosystem

The collaboration is part of IFC’s larger effort to build a robust market for green finance in Africa. Since 2020, the organization has invested and mobilized $2.4 billion in renewable energy and sustainable building initiatives across South Africa through its financial sector partners. This growing ecosystem is designed to make climate-smart construction not only viable but financially attractive to developers and banks alike.

By expanding access to finance, reducing green certification costs, and creating long-term demand for sustainable infrastructure, the Nedbank CIB-IFC partnership is setting a new gold standard for climate-smart urban development in emerging markets.

Looking Ahead: Scaling for Impact

As urbanization accelerates and climate risks intensify, South Africa—and the continent at large—will require holistic solutions that integrate economic, social, and environmental objectives. The Nedbank CIB and IFC collaboration exemplifies how blended finance, institutional innovation, and global partnerships can converge to deliver such solutions.

With continued commitment and strategic scaling, the program could catalyze a regional transformation, encouraging more financial institutions to embrace green lending portfolios and more developers to adopt certified sustainable practices.

In this green transition, South Africa is not just participating—it is helping to lead the charge toward a climate-resilient and socially inclusive future.