Benin electricity distribution boost after EBRD loan

The European Bank for Reconstruction and Development (EBRD) has made its first investment in sub-Saharan Africa with a pledge to boost Benin’s electricity sector

The bank will provide a €30mn sovereign loan to Société Béninoise d’Énergie Électrique (SBEE), the national power distribution utility.

It forms part of part of a €173mn programme, with planned co-financing by the Agence Française de Développement (AFC) and the European Investment Bank (EIB), that also benefits from a grant under the EU’s Africa Investment Platform.

It will support Benin’s efforts to expand reliable electricity access to underserved communities in the Mono, Couffo and Borgou regions, strengthening the national grid and connecting 600,000 people.

In a statement, EBRD said the loan to SBEE “marks a significant step in strengthening Benin’s national grid, modernising its distribution infrastructure and improving the daily lives of rural communities and vulnerable households, particularly women.”

This rural electrification project is expected to enhance energy reliability and connect to the grid 120,000 new households, across 750 rural villages and towns.

The project involves extending, modernising and increasing the density of the medium- and low-voltage distribution network across the various regions, paired with modern grid enhancements such as improved fault-detection systems and stronger cybersecurity capabilities for 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, EBRD’s head of Benin.

“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.”

Benin became an EBRD shareholder in 2024 and a country of operation in July 2025.

The bank added that it plans to invest in “sustainable critical infrastructure” in the West African country “that underpins private-sector development” and supports the modernisation and efficiency of enterprises and strengthening of the economic governance of institutions.

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