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Africa|Business|Export|Financial|Health|Infrastructure|Logistics|PROJECT|Projects|Risk Management|Roads|Services|Sustainable|Systems|transport|Solutions|Infrastructure
Africa|Business|Export|Financial|Health|Infrastructure|Logistics|PROJECT|Projects|Risk Management|Roads|Services|Sustainable|Systems|transport|Solutions|Infrastructure
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Merged Nedbank Africa Infrastructure Finance unit to support Africa's development

17th October 2023

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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Financial services firm Nedbank will merge its project finance and export credit teams into the newly repurposed Africa Infrastructure Finance business unit through which the bank aims to offer streamlined financial solutions tailored to meet Africa's unique infrastructure requirements and support Africa's sustainable infrastructure development.

Infrastructure, often regarded as the heartbeat of any thriving economy, lays the foundation for robust economic growth and development. Infrastructure is pivotal in bridging trade supply chains, thus facilitating seamless goods and services movement across borders, said Nedbank Africa Infrastructure Finance co-head Sekete Mokgehle.

“Africa's transportation and logistics handling infrastructure holds untapped potential. Be it enhancing regional integration or meeting the needs of urbanization and facilitating trade, we need efficient transport and logistics infrastructure,” he emphasised.

With transport and logistics infrastructure poised to drive economic resurgence in South Africa and across the continent, Nedbank is deepening its commitment to the sector.

“Nedbank foresees tremendous growth in inter-border railways, roads, and border processing infrastructure. Yet, urban transit systems in cities may soon become the most sought-after transport infrastructure, and Nedbank is poised to finance these ventures,” said Mokgehle.

“Logistic handling infrastructure is a game-changer, potentially unlocking billions for Africa. As such, it remains a central pillar in Nedbank's infrastructure investment plans,” he added.

Further, the newly consolidated unit is client- and sector-focused, providing them with a single point of access for infrastructure and risk mitigation solutions.

“We are combining the prowess of both teams to deliver both on-balance-sheet and off-balance-sheet project financing across the continent with applicable risk mitigation instruments across the sectors,” said Nedbank Africa Infrastructure Finance co-head Zakhele Mayisa.

The repositioning focuses on the future asset class of infrastructure that supports resilience to shocks of health systems and services, climate change, digitisation of services, decarbonisation across the sectors, inclusive and transforming infrastructure that encompasses United Nations Sustainable Development Goals (SDGs), he said.

“In the challenging landscape of African infrastructure financing, marked by economic and political uncertainties, banks like Nedbank employ strategic risk mitigation tactics. Export credit agencies serve as a primary tool, offering government-backed guarantees that safeguard lenders. Nedbank's approach also incorporates political risk insurance, leveraging multilateral agencies such as Multilateral Investment Guarantee Agencies or private insurers.”

Addressing Africa's estimated infrastructure financing deficit of $100-billion to $170-billion a year is urgent.

“Innovative solutions are paramount. Through Nedbank's Africa Infrastructure Finance solutions team, we are committed to narrowing this gap.

“By leveraging our robust risk management and diverse financing options, we aim to champion critical infrastructure projects that will not only bolster economic growth and foster regional ties but also contribute to job creation and enhance living standards across the continent,” he said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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