European bank green-lights three new African members for investment

The European Bank for Reconstruction and Development (EBRD) has cleared new member states Nigeria, Ivory Coast and Benin for investments following approval by the development finance institution's board, it said on Thursday.

The move will give the countries access to millions of euros in potential investments from EBRD, cementing an expansion into sub-Saharan Africa by the lender that has been in the works for years.

"The EBRD will leverage its financial resources and expertise to boost the countries' economies and provide new opportunities to their people, complementing the work of existing development partners," EBRD president Odile Renaud-Basso said in a statement.

At its annual meeting on Thursday, the EBRD board formally voted to approve recipient country status for the three West African nations.

Investments will begin shortly after an amendment to the EBRD's founding treaty comes into force in July, the bank said.

Kenya, Ghana and Senegal are also being considered for membership but still must meet some pre-membership requirements before the process is fully concluded.

The bank was formed in 1991 to help rebuild Eastern Europe in the wake of the Cold War and has since expanded into the Middle East, North Africa and Mongolia. It has invested more than €200bn (R4.04-trillion) since its creation and supports policy reforms to develop the private sector.

It partners with the private sector to enable investments in natural resources, financial institutions, agriculture and infrastructure.

Renaud-Basso said the bank will focus on supporting the green transition, strengthening economic governance and promoting human resilience, including equal opportunity.

Reuters