The European Bank for Reconstruction and Development (EBRD) is preparing to kick off operations in Nigeria as it charts a course for expansion into Sub-Saharan Africa, with Côte d’Ivoire and Benin also on the horizon.
This development was confirmed by EBRD President Odile Renaud-Basso during a press briefing on Monday, ahead of the bank’s annual general meeting scheduled to begin in London on Tuesday. Renaud-Basso noted that the bank’s board of governors is expected to give the green light for Nigeria’s inclusion as a country of operation.
She also revealed that the EBRD has extended the deadline for shareholders to participate in a capital increase first approved in late 2023. More than 60% of the bank’s 75 shareholders including Japan and most EU member states have either completed or are in the process of finalizing their contributions.
However, the United States, which holds a 10% stake and is the EBRD’s largest single shareholder, has not yet committed its share. In light of this, the bank has decided to extend the subscription deadline to the end of the year.
“We always set a deadline to accelerate the process, but we are ready to extend it when necessary,” Renaud-Basso explained.
The issue of U.S. financial participation comes at a time when President Donald Trump’s administration has taken a more restrained approach to international development financing. While Trump is expected to contribute $3.2 billion to the World Bank’s International Development Association (IDA), this falls short of the $4 billion pledged under former President Joe Biden.
Renaud-Basso said that clarity regarding U.S. participation in the EBRD’s capital increase should emerge in the coming weeks as budget negotiations progress in Congress. Still, she stressed that the bank remains financially robust regardless of Washington’s decision.
“Since 2023, our performance has been very strong. We’re on solid financial ground,” she said. Should the U.S. opt out of the capital increase, it would retain its position as the top shareholder, though its relative ownership percentage would decline as other members increase their stakes.
Despite political headwinds, Renaud-Basso affirmed that the EBRD would stay committed to its core development priorities, including investment in renewable energy and initiatives to enhance human capital such as empowering women in business. These focus areas have faced criticism from the Trump administration in the context of other multilateral banks, but the EBRD remains firm in its approach.
“Our investment decisions are grounded in solid economic rationale energy security, efficiency, and the long-term benefits of green transition,” she said.
Renaud-Basso also underscored the importance of institutions like the EBRD in a period marked by significant global instability.
“The level of uncertainty today is unprecedented. From rising trade tensions to geopolitical conflicts including the war in Ukraine the world needs resilient institutions that can help navigate these challenges,” she said.
