The information became official on April 29, 2024. The European Bank for Reconstruction and Development (EBRD) announced that Cotonou has completed its membership process and officially obtained full member status. Benin is now the 75th shareholder and the very first member in sub-Saharan Africa.
As a reminder, the European Bank for Reconstruction and Development (EBRD) is a multilateral institution responsible for facilitating the transition to a market economy in the countries of Central and Eastern Europe. Founded in 1991 and based in London, the EBRD’s mission is to facilitate the transition in member countries towards greener, more inclusive, more resilient and competitive market economies.
This is how Benin became a member of the EBRD
At its Annual Meeting held on May 18, 2023 in Samarkand (Uzbekistan), the Board of Governors of the EBRD approved an amendment to the Agreement Establishing the Bank aimed at allowing a limited and gradual expansion of its scope of activities. geographical action to sub-Saharan Africa and Iraq.
Benin presented, on July 2, 2023, its membership as a member country and the intention to subscribe to two hundred and three (203) shares of the share capital of the Bank and the Board of Governors of the Bank decided in in favor of its accession in October 2023.
Indeed, following this request, the Council of Governors approved the accession of Benin through resolution No. 263 of October 20, 2023 and at the same time invites the Republic of Benin to fulfill the prerequisites granting the country the membership status no later than October 31, 2024.
Faced with this deadline, the Government of Benin, meeting in the Council of Ministers on November 29, 2023, recorded the adoption and transmission to the National Assembly, for authorization of ratification, of the Accession Decree of the Republic of Benin at the European Bank for Reconstruction and Development (EBRD).
In its plenary session on Wednesday January 24, 2024, the National Assembly of Benin played its part by examining and adopting the law authorizing the accession of the Republic of Benin to the European Bank for Reconstruction and Development (EBRD) .
Thus, ahead of Côte d’Ivoire, Benin became the first country in sub-Saharan Africa to join the European Bank for Reconstruction and Development (EBRD) as the 75th shareholder.
The EBRD had 72 shareholder countries, in addition to the European Union and the European Investment Bank. By joining, Benin became the 75th shareholder and the first member in Sub-Saharan Africa. Here’s why !
As a beneficiary country, Benin will now receive support from the EBRD in terms of financing and policies to be implemented.
« I am very pleased to welcome Benin, the first country in sub-Saharan Africa to join the Bank. We look forward to working in partnership with the country and, when the time comes, putting our expertise to work to support private sector development and sustainable growth. » declared Odile RENAUD-BASSO, President of the EBRD
For his part, Romuald Wadagni, Minister of Economy and Finance of Benin in charge of Cooperation, declared: “ We are delighted to join the EBRD with the prospect of becoming a country of operation of the Bank. Benin intends to capture more resources necessary for the structural transformation of our economy, the improvement of the business climate and the revitalization of our private sector. All this should impact the living conditions of our populations. »
Benin joined the EBRD because it supports countries in transition through investments, advisory activities and policy reforms. It works to promote private sector development and sustainable change, leaving a lasting legacy for a better future. It devotes its interventions to the transport, energy, manufacturing industry, agro-industry, hydraulic infrastructure, sanitation, and financial sectors.
Benin can now especially benefit from the EBRD’s services which will contribute to the development of the private sector, job creation and sustainable development. These services are:
- loans in favor of private sector companies, any state enterprise,
- equity investments in private sector companies, in any state enterprise,
- the provision of guarantees when other means of financing are not adequate, for the issuance of securities by private sector companies and state enterprises,
- facilitating access to national and international capital markets for private sector companies or other state-owned enterprises by granting guarantees, when other means of financing are not adequate,
- the provision of financial advice or any other forms of assistance,
- the use of Special Fund resources in accordance with the agreements defining their use,
- loans and technical assistance for the reconstruction and development of infrastructure, including programs related to environmental protection, necessary for the development of the private sector and the transition to a market economy and
- guarantees for the benefit of banks.
In addition, Benin will have dividends on paid-up shares subscribed and financing at relatively low and profitable rates for companies in its private sector.
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Francis Z. YOU WILL COME