• EBRD approves €30 million loan to Benin’s state electricity utility

• Funding targets rural electrification, connecting 120,000 households nationwide

• Marks EBRD’s first investment in sub-Saharan Africa

The European Bank for Reconstruction and Development (EBRD) said on Friday it had approved a 30 million euro loan to Benin’s national electricity utility, its first investment in sub-Saharan Africa.

The funds, provided to the Societe Beninoise d’Energie Electrique (SBEE), will strengthen the national power grid and modernise public electricity distribution infrastructure, the bank said. The project aims to improve living conditions for rural communities and vulnerable households, particularly women.

The rural electrification programme will connect about 120,000 new households, roughly 600,000 people, in 750 underserved villages and rural settlements across the Borgou, Mono and Couffo regions. It includes the extension, upgrading and densification of medium- and low-voltage distribution networks, as well as improved fault-detection systems and enhanced cybersecurity capabilities for the SBEE.

“I am delighted to sign our first financing in sub-Saharan Africa only a few months after Benin became a recipient country,” said Dasha Dougans, the EBRD’s country director for Benin. “This investment will expand access to reliable electricity for thousands of families and strengthen the resilience and sustainability of Benin’s energy infrastructure, supporting rural development and economic growth.”

The EBRD loan forms part of a 173 million euro programme co-financed by the French Development Agency (AFD), the main investment partner, and the European Investment Bank (EIB). The programme will also benefit from an EU investment grant under the Investment Platform for Africa, which targets funding gaps in sub-Saharan Africa.

Founded in 1990 to support the transition to market economies in central and eastern Europe, the EBRD approved changes to its charter in May 2023 to allow a gradual expansion into selected sub-Saharan African countries. Six countries are set to receive financing: Benin, Ivory Coast, Nigeria, Ghana, Kenya and Senegal.

Benin became a shareholder of the EBRD in April 2024 and an operational country in July 2025. In the West African nation, the bank plans to invest in essential and sustainable infrastructure, support private sector development, and strengthen institutional governance.

Walid Kéfi