EBRD Extends €30M Loan to Benin to Enhance Electricity Access for Rural Communities

On 12 December 2025, the European Bank for Reconstruction and Development announced that it has approved a EUR 30 million sovereign loan to Benin to enhance #ElectricityAccess. The loan is part of a larger facility amounting to EUR 173 million to be co-financed by the European Investment Bank (EIB) and the France Development Agency (AFD). The EU will also provide a small portion in the form of a grant under its Africa Investment Platform (AIP).

The fund is destined to improve the national electricity grid and will touch the lives of an estimated 600,000 Beninese. The efforts are targeted at underserved communities in the Mono, Couffo and Borgou regions.

“I am delighted to sign our first financing in sub-Saharan Africa, only a few months after Benin became a recipient country. 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.”

EBRD Head for Benin Dasha Dougans

The loan will be disbursed to the Société Beninoise d’Energie Electrique (SBEE), the national power distribution company. The financing is aligned with EU’s commitment to support rural communities and vulnerable households, with women at the helm.

As part of the program, SBEE will connect 120,000 households to the grid, serving a total of 600,000 people. 750 villages and small towns have already been identified to benefit from the program.

Benin became an EBRD shareholder in 2024, and the Benin EBRD office became operational only in July 2025. After that, it took less than six months to reach the first deal, which is also historical as the first of its kind in sub-Saharan Africa. Other African countries are expected to follow suit in the future.