The European Bank for Reconstruction and Development enters West Africa with the start of operations in Benin, Côte d'Ivoire and Nigeria
- West Africa returns to economic growth
- The economies of Benin, Côte d'Ivoire and Nigeria
- The EBRD as an economic driver
Benin, Côte d'Ivoire and Nigeria will officially become recipient countries of the European Bank for Reconstruction and Development (EBRD) from next July. Their incorporation will be effective ‘once the required amendment to the bank's founding treaty enters into force,’ according to the bank's official website.
The EBRD will begin working with these countries by applying its characteristic model of private sector support, acting at the local level and facilitating access to finance, with the aim of strengthening local businesses and promoting long-term sustainable economic development, which will help transform the economies of these African countries.
The president of the international financial institution, Odile Renaud-Basso, demonstrated her commitment to Benin, Côte d'Ivoire and Nigeria by stating that ‘the EBRD will leverage its financial resources and expertise to boost the countries 'economies and provide new opportunities for their people, complementing the work of existing development partners’.
West Africa returns to economic growth
According to a World Bank Group report on the economy of sub-Saharan Africa, economic growth is estimated to reach 3.5% in 2025. This figure represents an improvement on previous years, particularly when compared to the decline anticipated by the World Bank between 2022 and 2023, when growth fell from 3.6% to 3.1% due to increased conflict and violence in the region.
Despite this setback, 2024 has been considered a key year for the continent's economic development, with growth of 3.4% positioning the region as an area with high potential. This positive trend is set to continue in 2025 with 3.5% growth, and is expected to accelerate further to reach 4.3% in the period 2026-2027.
Stronger private consumption and increased investment, against a backdrop of lower inflation and greater stability in local currencies, have been the main factors driving growth. However, the World Bank Group warns that it is not yet strong enough to significantly reduce poverty levels or meet the expectations of the population.
The economies of Benin, Côte d'Ivoire and Nigeria
Firstly, Benin experienced remarkable economic growth of 6.5% in 2023-2024, with estimated inflation of 2% in 2024. Its economy is projected to continue expanding at around 6% in the medium term. With a GDP of $21.322 billion and a population of 13.7 million, Benin is one of the smallest economies in the West African Economic and Monetary Union (WAEMU), with a per capita income of $1,440. Its economy depends mainly on agriculture, but has grown thanks to expanding exports, infrastructure improvements and increased commercial activity. In 2021-2022, it created a Special Economic Zone (SEZ) with tax and customs benefits to attract foreign investment and promote industry, according to the CESCE in its 2025 Country Risk Report.
As for Côte d'Ivoire, according to the IMF, it has shown a strong economic recovery, with average growth of 7% between 2012 and 2023, and projections of 6.5% for 2024 and 2025. Inflation is low (3.8%) compared to the region, and GDP per capita reached $2,900 in 2024, surpassed only by Cape Verde in West Africa. Ivory Coast's growth is largely due to the diversification of its economy, with the service and industrial sectors generating more than 75% of GDP. Private investment continues to rise thanks to tax incentives and improved infrastructure, and access to electricity has also improved significantly, rising from 34% in 2013 to over 90% in 2024. In addition, a major oil project led by Italian company Eni could bring production to 200,000 barrels per day by 2027.
Meanwhile, Nigeria recorded its strongest economic growth in a decade in 2024, driven by a solid fourth quarter with year-on-year growth of 4.6%. As a result, the World Bank projects that the economy will grow by 3.6% in 2025.
Nigeria's economic growth is due to reforms implemented by President Bola Ahmed Tinubu, including the elimination of petrol subsidies, cuts in electricity subsidies and the unification of the exchange rate. These measures have helped improve the country's finances and allowed the central bank to increase its reserves to more than $37 billion. In addition, the government has increased revenue (equivalent to 4.5% of GDP) and reduced its fiscal deficit (from 5.4% to 3% of GDP).
The EBRD as an economic driver
The three countries are experiencing strong and positive economic growth, driven by key factors such as attracting investors, economic diversification and improvements in their infrastructure. Together, these factors are paving the way for continued economic growth, which is reflected in the inclusion of these countries in the European Bank for Reconstruction and Development. Their collaboration will further boost their economies, giving them access to resources and technical support that will enhance their long-term development.
At the same time, other African countries such as Ghana, Kenya and Senegal have begun the process of becoming operator countries. Taken together, these additions show that the EBRD is adopting a new vision: to help make the continent stronger and attract the attention of foreign powers.