The European Bank for Reconstruction and Development (EBRD) has formally approved Nigeria, Côte d’Ivoire and Benin as recipient member countries, granting them access to the bank’s financing instruments and expertise for the first time. This landmark expansion marks the culmination of a long-anticipated entry into Sub-Saharan Africa and positions the three West African economies to benefit from millions of euros in potential funding.

A Milestone Decision at the Annual Meeting

At its Annual Meeting held in London on 15 May 2025, the EBRD’s Board of Governors voted to amend the bank’s founding treaty—a prerequisite for extending its operations to new regions—and approved Nigeria, Ivory Coast and Benin as Countries of Operation. Once the treaty amendment takes effect in July 2025, the EBRD will begin deploying capital, technical assistance and policy-advice instruments to support both private-sector enterprises and public-sector projects in these three countries (Reuters, EBRD).

Odile Renaud-Basso, President of the EBRD, commented:

“We are delighted to welcome Benin, Côte d’Ivoire and Nigeria as new countries of operations. We will leverage our financial resources and expertise to boost their economies, create new opportunities for their citizens, and complement the work of existing development partners” (EBRD).

Strategic Rationale Behind the Expansion

Founded in 1991 to support post-Cold War reconstruction in Eastern Europe, the EBRD has since grown into a leading multilateral development bank, investing over €200 billion across 40 countries in Europe, North Africa, the Middle East and Central Asia (Business Insider Africa, Reuters). The decision to enter Sub-Saharan Africa aligns with the bank’s mandate to foster transition toward market-oriented economies, while addressing critical challenges such as climate change, infrastructure deficits and economic governance.

By extending its private-sector-focused, locally based business model into Nigeria, Ivory Coast and Benin, the EBRD aims to:

1. Mobilize green finance to accelerate energy transition projects and climate resilience.
2. Strengthen economic governance via policy-dialogue and institutional reform.
3. Promote inclusive growth by supporting SMEs, women-led enterprises and social infrastructure.

Country Profiles: Opportunities and Challenges

Nigeria

Africa’s largest economy by GDP, Nigeria is undergoing ambitious reforms to diversify away from oil dependency. Despite a current account surplus rebound in 2024, the country faces high youth unemployment (over 33%) and infrastructure bottlenecks in power and transport. EBRD investments are expected to target:

• Renewable energy projects (solar mini-grids and gas-to-power) to stabilize the national grid.
• Financial sector strengthening, including credit lines for local banks to lend to SMEs.
• Logistics and transport, notably upgrades to ports and inland waterways.

President Bola Tinubu has publicly welcomed the EBRD’s entry, noting that “access to long-term finance at competitive rates will be transformational for our industrial and agricultural sectors.” Moreover, Nigeria’s experience hosting the new Africa Energy Bank underscores its commitment to becoming an African green-energy hub (Reuters).

Côte d’Ivoire

Boasting one of the fastest-growing economies in West Africa (average real GDP growth of 6.8% from 2015–2024), Côte d’Ivoire has become a regional leader in cocoa processing, oil refining and digital services. Key EBRD focus areas will include:

• Agro-industrial value chains, improving processing capacity and export competitiveness.
• Urban infrastructure, such as mass-transit systems in Abidjan.
• Financial inclusion, by supporting fintech startups and mobile-banking platforms.

Under President Alassane Ouattara, Ivorian authorities have already engaged with the EBRD on green-hydrogen feasibility studies, leveraging the bank’s newly expanded eligibility criteria in its Green Finance Framework to include hydrogen and standalone battery storage.

Benin

As one of the smaller economies in the region, Benin faces fiscal constraints but benefits from political stability and its position as a trade gateway for landlocked neighbours. The EBRD’s private-sector development model will support:

• Port of Cotonou modernisation, enhancing throughput and reducing logistics costs.
• Renewable energy roll-outs, including solar household systems outside urban centres.
• Tourism infrastructure, improving standards at heritage sites like Ouidah.

President Patrice Talon has highlighted the EBRD’s role in catalysing public-private partnerships and said that “the flow of expertise and capital will spur job creation and sustainable development in Benin.” (EBRD).

Financing Instruments and Modalities

The EBRD offers a diverse toolkit to drive impact at scale:

• Direct equity and debt financing for corporations, joint ventures and PPPs.
• Local currency credit lines to partner banks, reducing exchange-rate risk for SMEs.
• Green bonds and sustainability-linked financing aligned with the Green Bond Principles.
• Technical cooperation grants to bolster project preparation, capacity building and regulatory reform.

By crowding in private capital and blending EBRD funds with concessional finance from partners such as the European Union and the European Investment Bank, each euro invested by the EBRD can unlock up to three euros of additional investment (Reuters).

Wednesday’s Amendment: Legal and Procedural Steps

The treaty amendment approved on Wednesday must now pass through ratification by the EBRD’s 75 shareholders. Once effectual—anticipated in July 2025—the bank’s Investment Operations Department will formally establish resident offices in Abuja, Abidjan and Cotonou, complete with locally recruited teams. An inaugural pipeline of projects is already under review, covering an estimated €1 billion of investments in each country during the wind-up of 2025–2026 (Reuters).

Broader Sub-Saharan Ambitions

Beyond the trio, the EBRD has placed Ghana, Kenya and Senegal under formal pre-accession consideration. These countries must meet criteria relating to market-based economic reforms, multi-party democracy and environmental governance before they, too, can access EBRD’s capital. The bank’s strategy envisages a gradual rollout across ten Sub-Saharan economies by 2030, contingent on ratification timelines and partner government readiness (EBRD).

Complementing Global Development Efforts

The EBRD’s move dovetails with parallel initiatives by other multilateral development banks:

• The African Development Bank (AfDB) has earmarked US $20 billion for climate finance through 2026.
• The World Bank Group is deploying guarantees and blended finance to mobilize private capital in Africa.
• The International Finance Corporation (IFC) continues to scale up its equity funds for frontier markets.

By collaborating on co-financing and knowledge sharing, these institutions aim to fill a projected US $170 billion annual infrastructure gap in Africa, as estimated by the UN Economic Commission for Africa (Reuters).

Impact on Sustainable Development Goals

The EBRD’s investment in Nigeria, Côte d’Ivoire and Benin will advance multiple UN Sustainable Development Goals (SDGs), notably:

• SDG 7 (Affordable and Clean Energy) through renewables rollout.
• SDG 8 (Decent Work and Economic Growth) via SME financing and infrastructure projects.
• SDG 9 (Industry, Innovation and Infrastructure) by modernising ports and transport networks.
• SDG 13 (Climate Action) through green bonds and climate-resilient agriculture.

By targeting “dark green” projects—those delivering the most stringent environmental benefits under the Green Bond Principles—the bank ensures measurable carbon reductions and community co-benefits (Reuters, EBRD).

Voices from the Ground

Local stakeholders have expressed optimism:

“EBRD’s entry means lower-cost, multi-year financing that the private sector in Nigeria desperately needs,” says Ifeanyi Okoro, CEO of a Lagos-based renewable-energy startup.

“We anticipate the EBRD will help us transition from cocoa export reliance to value-added processing,” notes Fatoumata Coulibaly, a cocoa cooperative leader in Côte d’Ivoire.

“With better port infrastructure in Cotonou, we can compete regionally on exports,” affirms Jean‐Paul Houngbo, president of Benin’s Manufacturers’ Federation.

These testimonials underscore not only the scale of expected financial flows but also the transformative potential of strategically targeted investments (Reuters).

Looking Forward: Building Momentum

As the treaty amendment enters into force, the EBRD will immediately:

1. Establish country offices in Abuja, Abidjan and Cotonou.
2. Launch flagship pilot projects in renewable energy and SME finance.
3. Sign memoranda of understanding with host governments on priority sectors.
4. Mobilize co-financing from the EU’s Neighborhood, Development and International Cooperation Instrument (NDICI).

By the end of 2026, the bank aims to have at least €3 billion of cumulative investments across its new Sub-Saharan portfolio. This accelerated rollout is designed to demonstrate the bank’s agility in frontier markets and to inspire further regional engagement by other development institutions.

Conclusion

The EBRD’s approval of Nigeria, Côte d’Ivoire and Benin as recipient member states represents a pivotal moment in the institution’s evolution and in Africa’s development landscape. By marrying private-sector finance, technical expertise and policy advocacy, the bank stands poised to unlock sustainable growth, foster inclusive prosperity and contribute to the continent’s climate resilience.

As these three nations prepare to welcome the first wave of EBRD-backed projects, policymakers, entrepreneurs and communities alike will look to this partnership as a blueprint for leveraging global capital in support of Africa’s dynamic transformation. The true measure of success will be seen not only in billions of euros disbursed, but in jobs created, emissions avoided and livelihoods uplifted across West Africa.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

16th May, 2025