The European Bank for Reconstruction and Development (EBRD) is taking a major step forward in sub-Saharan Africa. On Friday, December 12, the financial institution announced its very first investment in the region. It is a sovereign loan of 30 million of euros granted to the Beninese Electric Energy Company (SBEE), supplier national electricity.

Through this operation, the EBRD confirms, in concrete terms, its anchoring in Benin. In May 2024, the country became the first from sub-Saharan Africa to be a shareholder in the institution. Ce financing is part of a global program of 173 million euros, supported by the French Development Agency (AFD), in partnership with the Bank European Investment Bank (EIB) and the African Investment Platform of the European Union.

The funds mobilized are aimed at, primarily, the modernization of distribution infrastructures electricity in rural areas. The project aims to connect 120,000 new homes to the public network, i.e. around 600,000 people, in the departments Mono, Couffo and Borgou. A strategic lever to improve access to electricity in Benin.

For the EBRD, this investment is structuring. “This transformative investment will contribute to expanding access to reliable electricity for thousands of families,” said Dasha Dougans, EBRD manager for Benin. According to her, the project will strengthen sustainably the resilience and reliability of energy infrastructures, which are essential to rural development and to economic growth.

This first loan marks the start of a series of operations in Benin. The country has, in fact, one of the most dynamics of sub-Saharan Africa. In 2024, growth reached 7.5%, a unprecedented level since 1990. According to the World Bank, it should be maintain around 7.1% on average between 2025 and 2027.

However, this dynamic is accompanied by: considerable investment needs. Infrastructures, human capital, productivity and information technology are among the priorities. According to the African Development Bank (AfDB), financing needs Benin's annual figures in these sectors are estimated at at least 2.07 billion euros by 2030. However, the country has a structural financing deficit equivalent to about 5% of GDP every year for the past decade.

In this context, Benin's accession to the EBRD in 2024 seems strategic. The authorities intend to rely on the institution to expand access to private sector finance, strengthen the resilience of the financial system and support structural transformation of the national economy.

Beyond Benin, the EBRD shows clear ambitions in sub-Saharan Africa. The opening of an office in Cotonou, in July 2025, is part of a dynamic of regional expansion. Nigeria and Côte d'Ivoire are already among the targeted countries.

According to Heike Harmgart, Executive Director Sub-Saharan Africa from the EBRD, interventions will focus on sectors with high potential. These include the financial sector, fintechs, technologies, agro-industry, agritech and mining. Between 2025 and 2030, six countries in the region should benefit from EBRD financing, including Kenya, Senegal and Ghana.