The African Development Bank (AfDB) Group has approved a $100 million financing facility for the ECOWAS Bank for Investment and Development (EBID) to strengthen clean energy investment and private sector development across West Africa.

Under the first component, the AfDB Group will make a $30 million equity investment in EBID, making it the first development finance institution to acquire a stake in the sub-regional bank and secure a board seat. The investment also contributes to a capital increase intended to support EBID’s expansion and enhance its ability to attract resources from a broader range of international investors and financial partners.

The second component is a long-term credit facility of $70 million, earmarked for new clean energy projects in West Africa. EBID will deploy the funds to expand clean energy production for underserved communities and businesses across the region.

The facility is projected to deliver a range of socioeconomic and environmental outcomes. It is expected to improve electricity access for more than 250,000 households, benefiting nearly 1.4 million people, and to mitigate 355,500 tonnes of CO₂ emissions annually. Youth are expected to account for more than 70 per cent of all newly created permanent jobs arising from the funded initiatives.

Director of the Financial Sector Development Department at the AfDB Group, Ahmed Rashad Attout, said the credit line is expected to mobilise nearly $230 million in financing for renewable energy generation, particularly solar and hydroelectric projects, representing an additional capacity of 207 megawatts.

“This operation will strengthen the EBID’s capacity to support private sector development and investment in renewable energy in West Africa,” Attout said.

The operation is aligned with the New African Financial Architecture for Development (NAFAD), a framework designed to strengthen African financial institutions’ capacity to mobilise long-term development financing.

Also speaking, the Director of the Treasury and Resource Mobilisation Department at EBID, Andrews Amankwah, described the AfDB Group’s equity acquisition as an important milestone for the institution.

“Beyond the capital injection, this investment by a major AAA-rated shareholder strengthens the EBID’s credibility with international investors and supports efforts to mobilise long-term resources for the benefit of ECOWAS countries”

“It will also help to strengthen governance and accelerate the EBID’s strategy to finance sustainable development and the energy transition in the region,” he said.