EBRD and EU step up cooperation on green investment in sub-Saharan Africa

• €70 million extension to EFSD+ Hi-Bar programme will cover sub-Saharan Africa
• First collaboration between the EBRD and the European Commission with EU guarantees in the region
• Project will boost investment in climate mitigation measures and innovative green technologies

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their cooperation in sub-Saharan Africa, supporting strategic investment in climate mitigation measures and innovative green technologies across energy sectors and energy-intensive industries, including critical raw materials. 

The EBRD and the European Commission have agreed a €70 million extension to the European Fund for Sustainable Development Plus (EFSD+) High-Barrier (Hi-Bar) guarantee programme, extending it to cover sub-Saharan Africa. This is the first time that the EBRD and the European Commission have worked together on EU-backed guarantees in the region, building on a model that has been implemented successfully across the Bank’s other geographical regions. This project is part of the EU’s Global Gateway strategy, the EU’s external investment strategy for sustainable development.

The EFSD+ Hi-Bar guarantee agreement, which was originally signed in March 2024, providing for up to €168 million in EU guarantees, is designed to unlock investment in higher-risk projects in strategically significant industries in EBRD economies of operation outside the EU by mitigating key risks and enabling private-sector participation.

The Hi-Bar programme supports the next wave of climate mitigation technologies and business models, with a focus on:

• energy-sector investments, supporting decarbonisation and energy system transformation
• support for energy-intensive industrial sectors, where significant investment is needed to modernise production and reduce carbon intensity, including as regards critical raw materials and their value chains.

The programme is specifically designed to support the promotion of climate technologies and measures that traditionally face the highest barriers when accessing finance, including both first-of-a-kind investments and the scaling-up of technologies that have not yet reached critical mass in particular markets.

By extending the Hi-Bar programme to cover sub-Saharan Africa, the EBRD and the EU are bringing a proven risk-sharing model to new markets, facilitating investments that face elevated risks and would otherwise remain underfinanced. This initiative will contribute to the strengthening of strategic sectors in the region and support private-sector development.

"Supporting climate investments across energy and energy-intensive industrial sectors is essential for building resilient low-carbon economies,” said Mark Bowman, EBRD Vice President, Policy and Partnerships. “Our work with the European Union plays a critical role in accelerating the green transition by addressing higher-risk projects and enabling climate technologies that face the greatest barriers to financing. We are particularly pleased to expand this important programme to countries of operations in Sub-Saharan Africa.”

EU Commissioner for International Partnerships, Jozef Síkela, stated: “The transition to a low-carbon economy depends on investment in innovative technologies and industries that will shape the future. Through this partnership with the EBRD, we are supporting investment in clean energy, sustainable industry, and critical raw materials across Sub-Saharan Africa. This will create new business opportunities, generate quality jobs, and strengthen more resilient local economies. Through Global Gateway, we are working with trusted partners to mobilise public and private investment that delivers sustainable growth and lasting prosperity."