Key Points:
- Nedbank invests $193 million in Cape Town’s development projects, approved by the City Council on June 12.
- Cape Town’s infrastructure plans align with Nedbank’s strategic investment goals outlined for 2023.
- Mayor Hill-Lewis forecasts 120,000 new construction jobs amid Cape Town’s ambitious $2.17 billion infrastructure plan.
Nedbank, a renowned financial services group led by South African banker and business executive Jason Quinn, has announced a significant investment of $193 million to fuel development projects in Cape Town. The City Council approved the funding on June 12, marking a substantial boost for the region’s infrastructure needs and economic prospects.
Strategic investment aligns with broader plans
This strategic investment aligns with Nedbank’s capital expenditure plans outlined earlier this year. According to the Nedbank Capital Expenditure Project Listing for 2023, published in February, Cape Town captured a dominant 60 percent of the R100 billion ($5.4 billion) allocated nationally for government infrastructure projects in 2023.
Aiming to capitalize on this momentum, Cape Town Mayor Geordin Hill-Lewis has outlined an ambitious infrastructure spending plan of R39.5 billion ($2.17 billion) earmarked for the period between July 2024 and June 2027.
“This represents the largest ever three-year infrastructure investment by a metropolitan municipality in South Africa’s history,” declared Hill-Lewis. The Mayor estimates this substantial expenditure will generate a staggering 120,000 construction-related jobs over the next three years.
Focus on fast-growing areas and job creation
Cape Town is strategically funding its fastest-growing and poorest areas as it prepares to become South Africa’s most populous city. The funding strategy combines Cape Town’s own resources with funds from local and international markets.
After engaging with lenders last year, the city secured additional financing beyond Nedbank’s contribution. The International Finance Corporation pledged $150 million, while Agence Française de Développement committed €100 million ($107 million) in developmental financing.
Nedbank’s leadership and broader financial strategy
Nedbank Group, a prominent South African financial services provider, offers a wide range of services including banking, insurance, asset management, and wealth management. With a market capitalization of $6.8 billion, it ranks as the 24th most valuable company on the Johannesburg Stock Exchange.
Jason Quinn, a seasoned South African business executive, now leads Nedbank as CEO. He aims to leverage the firm’s extensive network across Africa’s financial sector to drive revenue growth and increase profitability.
Quinn, a leading business executive and multimillionaire banker — with a degree in accounting and a Chartered Accountant qualification — joins Nedbank from Absa Group, where he served as the Financial Director of both Absa Group and Absa Bank.
