IFC and Nedbank CIB Partner to Support Green Buildings and Affordable Housing in South Africa

Johannesburg, South Africa, May 26, 2025 – To accelerate South Africa’s transition to a greener, inclusive and lower-carbon economy, IFC and Nedbank Corporate and Investment Banking (CIB) have partnered to finance certified green buildings. The partnership will not only support the country’s transition to a lower-carbon economy but also help bridge the country’s housing deficit.

Under the partnership, IFC will provide Nedbank CIB with a senior loan of $200 million to further scale lending to green buildings developers in South Africa’s residential, commercial, industrial and retail property sectors. Each building will be certified through IFC’s Excellence in Design for Greener Efficiencies (EDGE) or equivalent standard for energy and water efficiency and for the use of more sustainable construction materials. At least half of all funds allocated to new residential developments will target the affordable housing segment.

IFC was an anchor investor in Nedbank CIB’s 2021 green bond issuance of R1.09bn, providing R500m to catalyse the availability of sustainable finance to support EDGE (or equivalent standard) certified buildings in the country. 

According to Vanessa Murray, Divisional Executive, Property Finance at Nedbank CIB, “Under the bond, Nedbank CIB was able to deliver 1 790 EDGE-certified units, including 1 305 affordable homes. The new facility allows us to scale this impact even further, expanding the reach to other real estate segments and aligning with global green building standards while addressing the country’s housing and infrastructure needs.

“Another example of the bond’s impact is illustrated by the creation of our in-house EDGE expert team - the only one of its kind in an African financial institution. With the IFC’s support, we have trained 21 Nedbank CIB staff and 21 clients, which enabled the certification of landmark projects such as the Mall of Africa, the largest EDGE-certified retail centre in the world."

“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,” said Claudia Conceiçao, IFC Regional Director for Southern Africa.

South Africa aims to reduce its GHG emissions by 42 percent by 2025 and reach net zero carbon emissions by 2050, with green buildings designated as a major part of the solution to meet these targets. Globally, conventional buildings account for nearly 40 percent of energy-related GHG emissions.

Sustainable housing, to which part of IFC’s loan will be dedicated, offers a dual solution: reducing emissions while addressing South Africa’s real estate needs in an environmentally responsible way.

IFC’s investment will benefit from a performance-based incentive (PBI), supported by the United Kingdom-IFC Market Accelerator for Green Construction (MAGC) Program. Nedbank CIB will allocate the PBI to eligible developers constructing green buildings to help cover the costs of greening and certification for buildings financed under the IFC investment.

Since 2020, IFC has invested and directly mobilized $2.4 billion in sustainable development projects with a focus on renewable energy and green buildings in South Africa through its financial institutions partners.