Benin to Expand Rural Power With €30m EBRD Loan

Benin has secured a €30 million sovereign loan from the European Bank for Reconstruction and Development (EBRD) to strengthen its national electricity grid and expand access to reliable power in rural and underserved communities.

The financing, extended to the country’s power distribution utility Société Béninoise d’Énergie Électrique (SBEE), forms part of a wider €173 million electrification programme co-financed by Agence Française de Développement and the European Investment Bank, with additional grant support from the European Union’s Africa Investment Platform.

The programme is expected to connect 120,000 new households, Around 600,000 people, to the national grid across 750 towns and villages in the Mono, Couffo and Borgou regions, improving electricity reliability for households, small businesses and public services.

Investment under the project will focus on extending and modernising medium- and low-voltage distribution networks, increasing grid density and upgrading system management, including improved fault detection and strengthened cybersecurity for SBEE.

Dasha Dougans, EBRD Head of Benin, said the loan would help expand access to dependable electricity while reinforcing the resilience and sustainability of the country’s energy infrastructure, which she described as critical for rural development and economic growth.

Benin became an EBRD shareholder in 2024 and a country of operation in July 2025. The Bank says its engagement in Benin will prioritise sustainable infrastructure, private-sector development and stronger economic governance. This is the Bank's first investment in sub-Saharan Africa.