The EBRD and the European Union have expanded a €70 million guarantee programme to mobilise private investment in renewable energy, industrial decarbonisation, and critical minerals across sub-Saharan Africa. The initiative aims to reduce financing risks, accelerate the region’s energy transition, and support sustainable economic development through blended finance.
Key Overview
- EBRD and EU expand a €70 million guarantee programme for green investments in sub-Saharan Africa.
- The programme targets renewable energy, industrial decarbonisation, and critical minerals value chains.
- The facility uses EU guarantees to reduce investment risks and attract private capital.
- Marks EBRD’s first sub-Saharan Africa operation backed by an EU guarantee mechanism.
- Supports broader regional expansion, including new EBRD operations in Nigeria and Senegal.
EBRD and EU Expand Green Finance Support in Africa
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have expanded a €70 million guarantee programme aimed at accelerating green investment across sub-Saharan Africa, supporting renewable energy, industrial decarbonisation, and critical minerals projects that are essential to the region’s low-carbon transition.
Announced on 7 July 2026, the expansion of the EFSD+ High-Barrier (Hi-Bar) guarantee programme represents the EBRD’s first operation in sub-Saharan Africa backed by an EU guarantee mechanism. The initiative is designed to reduce financing risks for projects that are often considered too risky by conventional lenders while encouraging greater participation from private investors and financial institutions.
Supporting Renewable Energy and Industrial Decarbonisation
The expanded programme will focus on financing projects in renewable energy, carbon-intensive industries seeking decarbonisation pathways, and critical minerals value chains that support clean energy technologies.
By lowering investment risks through public guarantees, the facility aims to mobilise private capital for projects that contribute to sustainable economic development while helping countries transition toward cleaner and more resilient energy systems.
According to Mark Bowman, the EBRD’s Vice President for Policy and Partnerships, supporting climate investments across the energy sector and carbon-intensive industries is essential for building resilient, competitive, and low-carbon economies.
Blended Finance to Address Investment Gaps
The expansion reflects the growing use of blended finance mechanisms, which combine public guarantees with private investment to make complex infrastructure projects financially viable.
Despite possessing some of the world’s largest renewable energy resources and abundant reserves of critical minerals required for clean technologies, many sub-Saharan African countries continue to face significant financial barriers.
Limited project preparation capacity, higher perceived investment risks, and restricted access to affordable financing have slowed the development of renewable energy infrastructure and industrial transformation projects across the region.
The Hi-Bar programme seeks to bridge this financing gap by improving investor confidence and enabling projects that might otherwise struggle to secure commercial funding.
Building on the Existing Hi-Bar Programme
The EFSD+ Hi-Bar programme was originally launched in March 2024 with EU guarantees of up to €168 million to support climate-related investments in higher-risk markets.
Its expansion into sub-Saharan Africa extends that proven investment model to a region where sustainable infrastructure financing remains one of the biggest challenges to achieving climate and development goals.
Although the EBRD has not yet announced the specific beneficiary countries, projects, or the total volume of investments expected under the expanded programme, the guarantee facility is expected to support projects capable of accelerating clean energy deployment and strengthening industrial competitiveness.
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EBRD Expands Presence in Sub-Saharan Africa
The announcement also comes as the EBRD strengthens its footprint in the region.
The bank recently opened a new office in Lagos, Nigeria, to strengthen support for businesses, improve competitiveness, and promote sustainable economic growth.
Shortly afterwards, EBRD President Odile Renaud-Basso made her first official visit to Senegal, where the bank plans to establish a new office in Dakar and sign its first private-sector investment agreements.
Nigeria and Senegal officially became EBRD shareholders and countries of operation in 2025, marking a significant expansion of the bank’s activities across the African continent.
Importance of Green Finance for Africa’s Energy Transition
Sub-Saharan Africa faces one of the world’s largest infrastructure financing gaps despite having vast renewable energy potential, abundant solar and wind resources, and significant reserves of minerals essential for batteries, electric vehicles, and clean energy technologies.
Guarantee mechanisms such as the Hi-Bar programme can help reduce financing costs, attract institutional investors, and accelerate the deployment of projects that support electricity access, industrial development, and emissions reduction.
By combining EU guarantees with the EBRD’s investment expertise, the partnership aims to strengthen climate resilience while supporting long-term economic growth and private-sector development.
Outlook
The expansion of the €70 million EFSD+ High-Barrier guarantee programme marks another step in strengthening green finance across sub-Saharan Africa. As the EBRD continues expanding its presence in markets such as Nigeria and Senegal, blended finance mechanisms are expected to play an increasingly important role in mobilising private investment for renewable energy, industrial decarbonisation, and critical minerals development. If successfully translated into bankable projects, the initiative could help narrow Africa’s infrastructure financing gap while accelerating the region’s transition toward a more resilient, low-carbon economy.
FAQs
1. What is the EBRD-EU €70 million guarantee programme?
It is a blended finance initiative that uses EU guarantees to reduce investment risks and attract private capital for green projects across sub-Saharan Africa.
2. Which sectors will the programme support?
The programme targets renewable energy, carbon-intensive industries pursuing decarbonisation, and critical minerals value chains that support the clean energy transition.
3. Why is this programme important for sub-Saharan Africa?
Many sustainable infrastructure projects in the region struggle to secure financing because of high investment risks. The guarantee programme helps make these projects more attractive to private investors.
4. Which countries will benefit from the programme?
The EBRD has not yet identified the specific beneficiary countries or projects, although the initiative coincides with the bank’s expanding operations in Nigeria and Senegal.
Sources: Africa Sustainability Matters, fundsforNGOs, Ecofin Agency
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