This article was produced with the support of ECOWAS Bank for Investment and Development
Undaunted by the raging facts of climate change in its home region of West Africa, the ECOWAS Bank for Investment and Development (EBID) has stepped up a robust integration of sustainability into its operations by creating an environmental, social, and governance (ESG) financing framework. Adopted in early 2023, this defines the criteria the Bank applies in evaluating and structuring projects in the Economic Community of West African States (ECOWAS) region, whose population of about 450m is spread among the 15 states of Benin, Burkina Faso, Cabo Verde, Cote d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.
This development points to EBID’s commitment to transparency and accountability in sustainable finance. The inspiring EBID ESG financing framework initiative sets out to achieve the integration of environmental protection, social impact, and governance principles into every stage of investment in line with the shift of global priorities towards cleaner, more resilient economies and sustainable transformation. It has received a positive independent opinion from a globally recognised rating agency, ISS ESG Solutions.
Powered by the same innovative dynamic, the EBID made history by being the first development finance institution (DFI) to issue the innovative, inclusive and historic green, social, and sustainable (GSS) bond known as the “GSS Bond BIDC-EBID 6.50% 2024-2031” on the West African regional stock exchange (Bourse Régionale des Valeurs Mobilières, BRVM) in November 2024. This raised an impressive 70bn CFA francs (€100m, $125m) in less than five days, confirming strong investor confidence in the EBID green portfolio and the enhanced appetite for sustainable investment in the ECOWAS region.
This astounding performance of the innovative and historic EBID GSS Bond is a feature of investments backed by the EBID. Previously, the BIDC-EBID 6.40% 2019-2026 public issue on the same market for 25bn CFA francs (€38m, $45m) was oversubscribed to 47bn CFA francs one week into an issue period scheduled for four weeks, during an extremely busy period in the market. In 2021 another EBID bond issued to the public was fully subscribed in 24 hours, whereas it was due to close in two weeks.
The high integrity of the EBID brand among institutional and private investors is sustained by their knowledge of the range of the Bank’s development and investment programmes; and activities in their respective home states. This results in a high and consistent credibility dividend associated with EBID for decades, since it commenced operations in 1979.
Indeed, the EBID, known in the hearts and mind of West Africans as the ECOWAS Bank, La Banque de la CEDEAO or O Banco da CEDEAO, continues to be a towering pillar critical to the implementationand sustainability of public and private sector development and investment projects in sectors such as agriculture; food processing and agribusiness; education infrastructure; health, development of logistics infrastructure; mining; renewable energy; rural and urban infrastructure development; tourism development; trade; transport infrastructure (aviation, rail and road); and support to public safety infrastructure among others.
Strategic partnerships and expanding access to climate finance
In early 2025 EBID achieved a major milestone through its accreditation by the Green Climate Fund (GCF), which opened direct access to one of the world’s largest sources of climate finance. The accreditation enables EBID to channel resources towards climate mitigation and adaptation projects across ECOWAS member states for renewable energy, water management and resilient agriculture. The move aligns with the EBID 2021–2025 Strategic Plan, which aims significantly to enhance sustainability-driven investments and to integrate climate resilience into regional development.
Collaboration is key to EBID’s approach. In this regard, one flagship initiative is the €100m EBID partnership with the European Investment Bank (EIB), designed to finance sustainable and climate-friendly projects in the ECOWAS region. The partnership targets sectors such as solar energy, sustainable agriculture, and water treatment with a total investment goal of about €300m when additional resources are mobilised.
Key green projects
Some of the flagship renewable energy projects financed in the EBID green portfolio include:
Solar photovoltaic systems to power 750 communities in Benin;
A rural electrification project using solar photovoltaic systems in 250 localities in Niger;
A 50 MW photovoltaic power plant in Sierra Leone;
A rural electrification project using solar photovoltaic systems in 50 villages in the Dosso, Tahoua and Tillabéry regions of Niger;
1,000 solar pumping and water treatment units in the Republic of Côte d’Ivoire;
A 50 MW solar photovoltaic plant in Taraba State, Nigeria – a landmark clean energy investment worth approximately $98m, aimed at expanding access to reliable, low-carbon electricity; and
Hydroelectric micro power stations at Poukou, Bolokoun, and Biwbaw in Guinea – an investment of about €95m to build three small hydro plants with a combined capacity of 30 MW.
These projects will serve rural and underserved communities and foster inclusive access to energy.
Environmental and socioeconomic impact
The growing EBID green portfolio contributes directly to the transition from fossil fuels to renewables, reducing greenhouse gas emissions, air pollution and dependence on imported energy. Additionally, renewable projects, especially solar and hydro, boost environmental resilience against droughts, floods, and energy insecurity linked to climate change.
The socioeconomic dividends of these projects are equally significant:
- Expanded energy access improves electricity availability in off-grid areas and supports local industries, schools, clinics, and households;
- Job creation emerges along the entire value chain, from construction and installation to maintenance and supply;
- Poverty reduction and economic growth are fostered through improved infrastructure, reduced energy costs, and enhanced community productivity; and
- Health and education outcomes benefit from cleaner air, reliable power, and improved water access, contributing to broader human development gains.
Challenges to the scaling dynamic
Despite encouraging progress, EBID and its partners face several challenges in scaling up green finance across West Africa. The financing gap for renewable infrastructure remains wide. Stronger policy frameworks, risk mitigation tools and blended finance approaches are required to offset them.
Technical capacity constraints, including the need for skilled professionals to install, operate and maintain renewable systems, must be addressed through training and institutional support. Additionally, regulatory hurdles such as grid integration, tariffs and authorisation processes can delay implementation if they are not harmonised at regional and national levels.
Balancing affordability with financial sustainability also remains a key consideration in order to ensure that clean energy access does not exclude low-income populations.
Alignment with the vision of the World Economic Forum
The EBID initiatives align closely with the World Economic Forum priority for inclusive and sustainable economic growth. The Bank’s strategy emphasises:
Sustainability and climate resilience, through transparent frameworks, Green Climate Fund (GCF) accreditation and innovative financial instruments;
Inclusivity, by giving priority to off-grid and rural renewable projects that reach populations historically excluded from energy access;
Economic opportunity, by fostering local industry, supporting SMEs, and enabling other sectors, such as health, education, and agriculture to thrive; and
Partnership and innovation, exemplified by collaborations with institutions such as the EIB and the issuance of GSS bonds that mobilise private capital in favour of public good.
Looking ahead
EBID’s green financing journey underscores the transformative role that DFIs can play in Africa’s sustainability agenda through mobilising capital for renewable energy, strengthening environmental governance and driving inclusive growth. EBID is setting a regional benchmark for how finance can serve both people and planet.
As West Africa strides into a low-carbon future it is imperative for EBID to scale and deepen impact and to ensure that financing translates into real improvements in livelihoods, climate resilience and economic opportunity. In this regard, the Bank is engaged in robust capital mobilisation, strengthening good governance, regional cooperation and promoting the active participation of communities under its jurisdiction.