The European Bank for Reconstruction and Development ( EBRD ) has launched its first investment in sub-Saharan Africa.

The facility in Benin will support the country’s efforts to expand reliable electricity access to underserved communities in the Mono, Couffom, and Borgou regions.

The €30 million ( US$35.25 million ) sovereign loan to Société Béninoise d'Energie Électrique ( SBEE ), the national power distribution utility, marks a significant step in strengthening the national grid, modernizing its distribution infrastructure, and improving the daily lives of rural communities and vulnerable households, particularly women.

The EBRD loan is part of a €173 million programme, with planned co-financing by Agence Française de Développement ( AFD ) and the European Investment Bank. The financing programme will also receive an investment grant from the European Union’s Africa Investment Platform.

The rural electrification project will enhance energy reliability and connect 120,000 new households, or 600,000 people, across 750 rural villages and towns to the grid, enabling the communities to benefit from new social and economic opportunities.

“This transformative investment will help expand access to reliable electricity for thousands of families. It will also strengthen the resilience and sustainability of Benin’s energy infrastructure, which is fundamental to accelerating rural development and unlocking economic potential,” says EBRD head of Benin Dasha Dougans.

Benin became an EBRD shareholder in 2024 and a country of operation in July 2025. In Benin, the EBRD aims to invest in sustainable critical infrastructure that underpins private sector development, support the modernization and efficiency of enterprises, and strengthen the economic governance of institutions.