The European Bank for Reconstruction and Development (EBRD) is preparing to launch its operations in Nigeria in 2025, a move that could unlock significant new funding for the country’s vibrant technology sector. The development bank’s entry into Africa’s largest economy follows a period of prolific investment in North African startups, suggesting a potential playbook for its engagement in Nigeria.
The bank is currently establishing its first resident office in Lagos and is actively recruiting key personnel, including an Office Manager, with a job posting listed on August 7, 2025. This physical presence underscores a long-term commitment to the region.
Nigeria formally requested to become an EBRD shareholder in April 2024, and its membership was approved by the bank’s Board of Governors the following month. The expansion is part of a broader strategic pivot to operate in sub-Saharan Africa, which was greenlit at the EBRD’s 2023 Annual Meeting. The bank states its focus will be on unlocking private-sector finance to foster sustainable and long-term growth.
A North African Blueprint?
While the EBRD has a broad mandate covering infrastructure, green energy, and human capital, its recent activity in North Africa points to a keen interest in high-growth technology companies. The bank’s venture capital arm has been particularly active, cutting cheques for some of the region’s most promising startups.
In Egypt, the EBRD has recently built a strong portfolio, indicating its appetite for tech-driven solutions:
- Fintech: It committed up to $21 million to payments infrastructure company MSS Holding and participated in a $22 million Series B extension for payments gateway Paymob, alongside PayPal Ventures.
- Insurtech: It led a $2.3 million funding round for insurtech broker Amenli.
- E-commerce: It injected $10 million into online grocery retailer Breadfast.
- Venture Capital: The bank has also acted as a Limited Partner (LP), backing Algebra Ventures’ second fund, which is dedicated to supporting Egyptian startups.
Similarly, in Tunisia, the EBRD participated in a $20 million Series B round for fintech company Expensya.
This pattern of backing startups in key sectors like fintech, e-commerce, and logistics suggests the EBRD is comfortable making venture-style bets and will likely seek similar opportunities within Nigeria’s well-established startup ecosystem.
What Nigerian Startups Can Expect
The EBRD’s operational model is centred on being a minority investor, typically taking stakes of up to 35%. While its direct equity investments are often large, ranging from €10 million to €200 million, its venture capital arm writes smaller cheques tailored to startup funding rounds, as seen in Egypt.
A key differentiator for the bank is its use of its own balance sheet, which allows it to be a patient, long-term investor with holding periods that can exceed those of traditional private equity funds.
For Nigeria, the EBRD’s official focus areas — digitalisation, green economy, and equality of opportunity — align closely with the strengths and needs of the local market. Founders in sectors such as greentech, edtech, healthtech, and fintech may find the EBRD to be a strategic funding partner.
The establishment of a local team in Lagos is crucial, as the bank emphasizes its on-the-ground presence for sourcing, executing, and monitoring deals. This local-first approach could provide Nigerian entrepreneurs with a new, well-capitalized partner as they navigate a challenging funding environment.