Nigeria becomes EBRD shareholder as it continues African expansion

Nigeria has officially become the 77th shareholder of the European Bank for Reconstruction and Development, or EBRD — the third of six sub-Saharan African countries set to join the institution. As other development institutions are scaling back or facing funding constraints, Heike Harmgart, managing director for sub-Saharan Africa at EBRD, told Devex that EBRD’s expansion has been welcomed by African governments. “Countries have welcomed us warmly in the past, but I think they are welcoming us even more warmly,” said Harmgart. Founded in 1991 to support economic development within and outside of Europe, EBRD announced in 2023 its plans to expand to six countries in sub-Saharan Africa. Since then, Benin and Côte d’Ivoire have joined. Kenya, Ghana, and Senegal are next on the list. Nigeria has so far paid €5.2 million ($5.6 million) as a capital contribution. Though shareholder status does not mean it is a recipient country, it is one step closer to becoming a “country of operation.” This would give it access to the financial and policy support that the other members have, including loans, equity, and private sector investment assistance. But it does have some initial perks. For now, Nigeria, Côte d’Ivoire, and Benin will be able to take part in strategy-setting as shareholders, including discussions on the bank’s new five-year strategy at the upcoming annual meeting in May. “They will be part of this decision-making process about our key priorities,” said Harmgart. “They will really be part of shaping our future.” EBRD analyzed the country’s “readiness” for investment, looking at factors such as private sector growth, governance frameworks, and alignment with the bank’s priorities, including the green transition. All three countries have a chance to become countries of operation by mid-2025, Harmgart said. Harmgart, who is currently visiting each of these new shareholder countries, said she hopes the visits will help her better understand their governments’ priorities — and which sectors need private investment. “We want to hit the ground running, and we want to hit the ground running with the right thing,” she said. “There is no use in looking at sectors that are not priorities for the governments.” For now, Harmgart said that she is unsure exactly what types of projects or financial support EBRD will provide in sub-Saharan Africa. “We haven’t really started in sub-Saharan Africa so we can’t fill any gaps yet,” she said. “We don’t yet have visibility on particular programs or projects where USAID may have left those gaps.” If Nigeria and the other five sub-Saharan African countries complete the process to become countries of operation, it would mark the first time EBRD has expanded into Africa beyond Egypt, Morocco, and Tunisia, where it has been since 2012. Update, March 17, 2025: This article has been updated to reflect that EBRD has been also active in Morocco and Tunisia since 2012.