The European Bank for Reconstruction and Development (EBRD) Corporate Brochure
EBRD: Geographic Expansion & Private Capital Mobilisation for Ukraine Reconstruction
The European Bank for Reconstruction and Development (EBRD) has unveiled its ambitious Strategic and Capital Framework (SCF) for 2026-2030, marking a significant evolution in its approach to private market investments and capital mobilisation
At the heart of this strategy lies the Bank's unwavering commitment to Ukraine's wartime support and reconstruction efforts, complemented by an expanded geographical footprint and intensified focus on sustainable, inclusive economic development.
Ukraine Reconstruction: The Central Strategic Imperative
The EBRD has positioned Ukraine's reconstruction as its "central strategic objective," reinforcing this commitment with substantial financial backing.
Following the full-scale Russian invasion in 2022, the Bank has already deployed more than €7 billion in Ukraine, demonstrating its frontline role in addressing the country's urgent economic needs.
This commitment received further reinforcement in late 2023 when the EBRD's Governors approved a €4 billion increase in paid-in capital specifically designed to provide "significant and sustained investment for Ukraine"
This capital injection, with its multiplier effect, will substantially expand the Bank's investment capacity in the country, creating a foundation for Ukraine's economic resilience and eventual recovery
"Supporting Ukraine during wartime and reconstruction remains our central objective," stated EBRD President Odile Renaud-Basso, underscoring the Bank's determination to prioritize Ukraine while maintaining its broader regional commitments.
Odile Renaud-Basso, EBRD President
Geographic Expansion: Sub-Saharan Africa and Iraq
In a bold strategic move, the EBRD is extending its operational reach to new territories in sub-Saharan Africa and Iraq. The Board of Governors has approved country of operation status for Benin, Côte d'Ivoire, and Nigeria, marking the Bank's first significant push into sub-Saharan Africa
This expansion represents not merely a geographical broadening but a strategic diversification of the EBRD's investment portfolio. By entering these high-potential markets, the Bank aims to leverage its private sector development expertise to address critical infrastructure gaps, promote sustainable economic practices, and create new investment opportunities for private capital partners
Three Core Strategic Themes
The EBRD's new strategy is anchored in three interconnected themes that will guide its investment decisions and policy initiatives:
1. Accelerating the Green Transition
Climate finance and green investments feature prominently in the Bank's strategic vision
Recent transactions exemplify this commitment, including a €76 million investment in VGP green bonds to develop sustainable industrial and logistics parks across six countries, and a €50 million investment in Bulgaria's Eastern Europe Electric Company to modernize energy grids.
The Bank is also scaling up its support for residential green financing, as evidenced by its unfunded portfolio guarantee enabling €100 million in energy efficiency loans through BNP Paribas Bank Polska These initiatives demonstrate the EBRD's determination to channel private capital toward climate-friendly investments across diverse sectors.
2. Advancing Economic Governance
The EBRD recognizes that sustainable economic development requires strong institutional frameworks and governance practices Its investment strategy increasingly incorporates governance considerations, supporting companies and projects that demonstrate commitment to transparency, accountability, and effective management.
The Bank's investments in private equity funds like Morphosis Capital Fund II (€15 million commitment) illustrate this approach, as these vehicles not only provide growth capital but also introduce governance improvements and operational best practices to portfolio companies across Romania and Central and Eastern Europe.
3. Promoting Human Capital and Equality of Opportunity
Investments that enhance human capital development and promote inclusive economic growth form the third pillar of the EBRD's strategy. The Bank is directing capital toward businesses that create quality employment, foster skills development, and improve access to economic opportunities for underserved populations.
Notable in this regard is the Bank's allocation of €25 million in EFSD+ guarantees for micro, small, and medium enterprises (MSMEs) in Central Asia and Mongolia, with special provisions for young entrepreneurs in Uzbekistan through credit lines to institutions like SQB and Davr Bank.
Strategic Enablers: Digital Technology and Private Capital Mobilisation
Two strategic enablers will amplify the impact of the EBRD's investments:
Developing and Deploying Digital Technology:
The Bank is increasingly focusing on digitalization as a catalyst for economic transformation. Its investments in technology-driven companies like eTravel and Nomagic reflect this priority. The €41.9 million investment in Nomagic , a Polish robotics company utilizing artificial intelligence for warehouse automation, exemplifies the EBRD's commitment to supporting digital innovation
Similarly, the Bank's co-investment in eTravel S.A. alongside Enterprise Investors Fund IX aims to enhance the company's digital offerings through IT platform upgrades and AI tool adoption, ultimately improving competitiveness in the evolving corporate travel market
Mobilising More Private Capital:
Perhaps most significant for private market investors is the EBRD's intensified focus on mobilising private capital The Bank is increasingly functioning as a catalyst, using its capital and risk-mitigation capabilities to attract private investors to its regions of operation
This approach is evident in the Bank's €180.3 million loan for urban regeneration in ClujNapoca, Romania, which forms part of a larger €400.6 million financing package involving commercial lenders including Erste Group , BCR Seed Starter Romania, and BRD - Groupe Societe Generale
By taking the lead in complex, transformative projects, the EBRD is creating pathways for private capital to participate in opportunities that might otherwise appear too risky.
Jürgen Rigterink, First Vice President and Head of Client Services Group
Fatoumata Bouaré, Vice President and Chief Risk Officer
Private Equity: A Growing Focus
The EBRD's commitment to private equity investments is increasingly evident, with its €250 million EBRD Venture Capital fund taking leading positions in technology-focused funding rounds
The fund's leading role in Nomagic's Series B fundraising demonstrates the Bank's willingness to assume a more prominent position in private equity transactions, particularly in sectors aligned with its strategic priorities.
The Bank's €15 million commitment to Morphosis Capital Fund II further illustrates its strategic approach to supporting SMEs and lower mid-market companies through equity financing. Anne Fossemalle, EBRD Director for Private Equity Funds, emphasized that "strong SMEs are the foundation of economic resilience and innovation," highlighting the alignment between the Bank's private equity investments and its broader economic development objectives
Financial Strength and Impact
The EBRD enters its new strategic period from a position of considerable financial strength, bolstered by the recent capital increase This enhanced financial capacity enables the Bank to pursue more ambitious investment targets while maintaining its emphasis on additionality and impact
President Renaud-Basso noted that the Bank's shareholders have demonstrated "continued confidence in our approach and in the relevance of our business model and its emphasis on the private sector" This affirmation of the EBRD's private-sector focus suggests that private market participants can expect the Bank to remain a significant partner in the regions where it operates.
A Catalyst for Private Investment
The EBRD's 2026-2030 Strategic and Capital Framework represents a significant evolution in the Bank's approach to private market engagement
By prioritizing Ukraine's reconstruction, expanding into new regions, focusing on strategic themes like the green transition, and enhancing its capacity to mobilise private capital, the EBRD is positioning itself as an increasingly important catalyst for private investment flows to emerging markets
For private market investors, the EBRD's enhanced strategy offers new opportunities for collaboration, risk-sharing, and access to markets that might otherwise present excessive challenges
As the Bank implements its ambitious plans, its role as a bridge between private capital and emerging market opportunities appears set to strengthen substantially.
The EBRD's commitment to "become even more ambitious for the impact and delivery we strive to achieve" signals that private market participants can expect the Bank to pursue innovative financing structures, pioneering investment approaches, and deeper partnerships with private investors as it works to fulfill its expanded mandate in the years ahead.
EBRD Executive Committee
The EBRD Executive Committee oversees all key aspects of the strategy, performance and financial soundness of the Bank:
Odile Renaud-Basso, President of the EBRD
Jurgen Rigterink, First Vice President and Head of Client Services Group
Mark Bowman, Vice President, Policy and Partnerships
