The European Bank for Reconstruction and Development (EBRD) is set to commence operations in Nigeria in 2025, marking a significant milestone in the country’s access to international development finance. This strategic expansion into Africa’s largest economy is expected to unlock substantial funding opportunities, particularly for Nigeria’s dynamic and fast-growing technology sector.
Following a successful track record of investing in North African startups, the EBRD’s move into Nigeria suggests a similar approach may be adopted one that prioritizes high-growth, innovation-driven enterprises.
Establishing a Local Presence
The EBRD is currently in the process of setting up its first permanent office in Lagos, Nigeria’s commercial capital. As part of this effort, the bank is actively recruiting key personnel, including an Office Manager, a position publicly advertised on August 7, 2025. This physical footprint reflects the bank’s long-term commitment to the region and its intention to engage deeply with local stakeholders.
Nigeria formally applied for EBRD membership in April 2024, and the application was swiftly approved by the bank’s Board of Governors in May. This expansion aligns with the EBRD’s broader strategic decision, made during its 2023 Annual Meeting, to extend its operations into sub-Saharan Africa. The bank has stated that its primary focus in the region will be on mobilizing private-sector investment to drive sustainable and inclusive economic growth.
Lessons from North Africa: A Tech-Focused Investment Strategy
While the EBRD’s mandate spans infrastructure, renewable energy, and human capital development, its recent investment activity in North Africa reveals a strong emphasis on technology and innovation. The bank’s venture capital arm has been particularly active, backing several promising startups across key sectors.
In Egypt, the EBRD has built a robust portfolio that highlights its appetite for tech-enabled solutions:
- Fintech: Invested up to $21 million in MSS Holding, a payments infrastructure firm, and participated in a $22 million Series B extension for Paymob, alongside PayPal Ventures.
- Insurtech: Led a $2.3 million funding round for Amenli, a digital insurance broker.
- E-commerce: Injected $10 million into Breadfast, an online grocery delivery platform.
- Venture Capital: Acted as a Limited Partner (LP) in Algebra Ventures’ second fund, which supports Egyptian startups.
In Tunisia, the bank also participated in a $20 million Series B round for Expensya, a fintech company specializing in expense management.
This pattern of investing in fintech, e-commerce, and logistics startups suggests the EBRD is comfortable making venture-style bets and may replicate this strategy in Nigeria, which boasts one of Africa’s most mature startup ecosystems.
What Nigerian Entrepreneurs Can Expect
The EBRD typically operates as a minority investor, taking equity stakes of up to 35%. While its direct investments can range from €10 million to €200 million, its venture capital arm is equipped to provide smaller, more targeted funding suitable for early-stage startups.
A key advantage of partnering with the EBRD is its use of its own balance sheet, allowing it to act as a patient, long-term investor. Unlike traditional private equity firms, the EBRD can hold investments for extended periods, providing stability and strategic support to its portfolio companies.
In Nigeria, the bank’s stated priorities digitalization, green economy, and equality of opportunity are well-aligned with the country’s entrepreneurial strengths. Startups operating in sectors such as greentech, edtech, healthtech, and fintech may find the EBRD to be a valuable and strategic funding partner.
The establishment of a local team in Lagos is particularly significant. The EBRD emphasizes the importance of having an on-the-ground presence to source, execute, and monitor investments. This localized approach could offer Nigerian founders a new, well-capitalized ally as they navigate a challenging funding landscape.
