- Over 6 000 new jobs to be created
- Investment will promote financial inclusion for underserved segments
- The move is in line with AfDB’s ten-year strategy
Harare – South Africa’s economy is set to benefit from the African Development Bank’s R2 billion investment in Nedbank SDG-linked bonds.
Announcing the conclusion of the investment, the AfDB said the SDG-linked Tier 2 bond is expected to benefit the South African economy through the creation of over 6 000 new jobs and nearly 20 000 SME loans in addition to catalyzing around R4 billion in additional investment in clean energy which will help South Africa’s efforts to transit away from coal-generated power over the next 10 years.
In addition, the investment which is the first of its kind in Africa is meant to promote financial inclusion for underserved segments of the populace such as women and rural dwellers and will lead to around R2 billion in new SME loans over the next five years.
Commenting on the investment, Stefan Nalletamby, the AfDB’s Director for the Financial Sector Department, said: “We are very pleased to be able to support the South African economy by injecting investment into the private sector through a responsible and trusted partner who is committed to responsible investing. This investment will help accelerate the recovery of the economy after the slowdown caused by the COVID-19 pandemic.”
AfDB also stated that several thousands of unbanked persons across southern Africa will benefit from financial inclusion through Nedbank’s low-cost digital financing initiatives.
Apart from South Africa, the Nedbank group has operations in countries that include Zimbabwe, Namibia, Swaziland, Mozambique, Lesotho and representative offices in Angola and Kenya.
It also has a 21% stake in pan-African banking group, Ecobank.
The investment by AfDB is in line with its Ten-Year Strategy 2013-2022, which emphasizes green and inclusive growth and is also in keeping with the Bank’s High 5 priorities which are to: light up and power Africa, feed Africa, industrialize Africa, integrate Africa and to improve the lives of African people.
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