• EBRD provides a €35.5 million ($41.5 million) sovereign loan to SGDS to modernize waste management in Greater Nokoué.

• Project targets over 75,000 tonnes of annual CO₂ emission reductions and supports recycling and waste valorization.

• Program forms part of a broader $101.6 million national reform aiming to collect 90% of urban waste and create up to 10,000 jobs.

The European Bank for Reconstruction and Development (EBRD) has granted a sovereign loan of €35.5 million ($41.5 million) to Benin’s waste management company Société de gestion des déchets et de la salubrité (SGDS). The financing aims to modernize solid waste management in the Greater Nokoué region, which hosts around 2.8 million residents.

The European Investment Bank (EIB) co-finances the project. The initiative will shift the current waste model, which relies heavily on landfilling, toward an integrated system focused on sorting, recycling, and waste recovery.

The project will upgrade existing manual sorting centers and build new sorting and composting facilities. It will install gas capture systems at landfill sites and improve leachate management. It will also fund the acquisition of trucks and containers to strengthen waste collection capacity. Authorities expect the program to reduce CO₂ emissions by more than 75,000 tonnes annually.

Beyond infrastructure, the  EBRD will launch its first infrastructure policy dialogue in Sub-Saharan Africa in Benin. The institution will provide technical assistance to strengthen SGDS governance, particularly through the implementation of a household waste collection fee.

The program will also include an equal opportunities initiative designed to increase women’s participation in technical and leadership roles.

Gilles Amoussou, CEO of SGDS, said the project marks “an important step for SGDS and for Benin’s transition toward a more modern and sustainable waste management system.”

The operation extends structural reforms launched by Benin’s authorities in 2018 with the creation of SGDS SA. The government aims to collect 90% of urban waste within seven years, gradually eliminate illegal dumpsites, improve public health, and generate nearly 10,000 direct and indirect jobs.

The program carries an estimated budget of CFA57 billion ($101.6 million). It covers major urban areas including Cotonou, Porto-Novo, Abomey-Calavi, Sèmè-Podji, and Ouidah.

Benin became an EBRD shareholder in 2024 and an operating country in 2025. The country now benefits from the bank’s strategy to support sustainable urban development and modernize essential public services. In December 2025, the EBRD approved a €30 million loan to Société béninoise d’énergie électrique (SBEE). The financing aims to strengthen the national power grid and upgrade distribution infrastructure.

This article was initially published in French by Charlène N’dimon

Adapted in English by Ange J.A de Berry Quenum