IFC and Nedbank CIB Partner to Expand Green Building Finance in South Africa

Finance & Investing Buildings & Architecture

Written by Onye Dike

•

Published May 28th, 2025

2 min read

Our principle

Cut through the green tape

We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information—why you seek it is not our concern.

In a major boost to South Africa’s green transition, the International Finance Corporation (IFC) and Nedbank Corporate and Investment Banking (CIB) have joined forces to finance the development of certified green buildings across the country. The partnership aims to accelerate the shift to a low-carbon, inclusive economy while addressing the nation’s housing shortage.

According to a statement from the IFC, the institution will provide a $200 million senior loan to Nedbank CIB to expand green building finance in South Africa. All financed buildings must meet IFC’s Excellence in Design for Greater Efficiencies (EDGE) standards or an equivalent green certification, focusing on energy and water efficiency and sustainable materials. Importantly, at least 50% of residential financing will target affordable housing.

The partnership builds on IFC’s earlier investment in Nedbank CIB’s 2021 green bond, where IFC contributed R500 million to support EDGE-certified developments. That bond helped finance 1,790 certified housing units, including 1,305 affordable homes. It also led to the creation of Nedbank CIB’s in-house EDGE expert team—the first of its kind in an African bank.

“This facility enables us to broaden our impact into more real estate segments, while staying aligned with global sustainability standards,” said Vanessa Murray, Divisional Executive for Property Finance at Nedbank CIB.

Claudia Conceiçao, IFC’s Regional Director for Southern Africa, noted the collaboration's broader goals: “This partnership supports South Africa’s climate goals while improving community wellbeing.”

The project will benefit from a performance-based incentive supported by the UK-IFC Market Accelerator for Green Construction (MAGC), helping developers offset certification costs.

Since 2020, IFC has mobilized $2.4 billion for green projects in South Africa, highlighting its commitment to sustainable urban development.

Source: ifc.org