Nedbank Commits $193 Million to Cape Town Development

Nedbank, the renowned financial services organization led by South African banker and business entrepreneur Jason Quinn, has announced a $193 million contribution to fund Cape Town development initiatives. The City Council authorized the funding on June 12, providing a significant boost to the region’s infrastructure and economic prospects.

This strategic investment is consistent with Nedbank’s capital spending objectives announced earlier this year. According to the Nedbank Capital Expenditure Project Listing for 2023, which was published in February, Cape Town received a whopping 60% of the R100 billion ($5.4 billion) allotted nationally for government infrastructure projects in 2023.

To capitalize on this momentum, Cape Town Mayor Geordin Hill-Lewis has proposed an ambitious infrastructure expenditure plan of R39.5 billion ($2.17 billion) for the period July 2024 to June 2027.

“This represents the largest ever three-year infrastructure investment by a metropolitan municipality in South Africa’s history,” according to Hill-Lewis. The Mayor believes that this significant investment will create 120,000 construction-related employment over the following three years.

Cape Town is investing deliberately in its fastest-growing and poorest districts as it prepares to become South Africa’s most populous city. Cape Town’s funding approach combines its own resources with monies from both local and foreign markets.

After meeting with lenders last year, the city was able to get extra funding beyond Nedbank’s commitment. The International Finance Corporation pledged $150 million, and the Agence Française de Développement committed €100 million ($107 million) in development financing.

Nedbank Group, a well-known South African financial services firm, provides a wide range of services, including banking, insurance, asset management, and wealth management. With a market valuation of $6.8 billion, it is the 24th most valuable firm on the Johannesburg Stock Exchange.

Jason Quinn, a seasoned South African corporate executive, currently leads Nedbank as CEO. He intends to use the firm’s wide network in Africa’s banking industry to boost revenue growth and profitability.

Quinn, a top corporate executive and multimillionaire banker with an accounting degree and Chartered Accountant accreditation, joins Nedbank from Absa Group, where he was the Financial Director for both Absa Group and Absa Bank.

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