EBRD Enables Expansion into Iraq
By John Lee.
The European Bank for Reconstruction and Development (EBRD) has amended its statutes, enabling it to expand operations into sub-Saharan Africa and Iraq.
According to a statement from the bank, this pivotal change redefines the Bank's geographic remit and follows approval by its Board of Governors in 2023. The amendment will formally take effect in three months.
The move sets the stage for Iraq to become a full country of operation, alongside several sub-Saharan nations. Iraq, along with Benin, Côte d'Ivoire, and Nigeria, has already joined as a shareholder, while Senegal, Kenya, and Ghana are currently undergoing the membership process.
Full statement from the EBRD:
The shareholders of the European Bank for Reconstruction and Development (EBRD) have accepted an amendment to Article 1 of the Bank's statutes, enabling the expansion of its operations to selected countries in sub-Saharan Africa and Iraq. Article 1 of the EBRD's statutes defines the Bank's purpose and its geographic remit for countries of operations.
The Board of Governors approved this expansion in 2023 and the threshold of shareholder approval required for the amendment to Article 1 has now been met. The amendment will enter into force in three months' time.
The announcement comes as the EBRD gears up for its 34th Annual Meeting, which will take place at the Bank's headquarters in Canary Wharf on 13-15 May 2025.
The event - centred on the theme Expanding Horizons, Enduring Strengths - will mark the Annual Meeting's return to London for the first time since 2016. It will provide an opportunity for the Bank to emphasise its commitment to international cooperation and innovation as it enters a new phase in its history, advancing its unique business model to sub-Saharan Africa and Iraq and finalising its new Strategic and Capital Framework for the next five years.
The EBRD has already welcomed Benin, Côte d'Ivoire, Nigeria and Iraq as new shareholders, with Senegal, Kenya and Ghana currently undergoing the membership process.
Once the countries become members, they must receive approval from the Board of Governors to become EBRD countries of operation.
EBRD President Odile Renaud-Basso said: "The modification of our Article 1 statute is a pivotal step towards the Bank's geographical expansion. It paves the way for our governors to grant recipient status to countries in sub-Saharan Africa and Iraq, which will enable us to start operations in our first countries in the region."
The EBRD currently has 75 national shareholders, in addition to the European Union and the European Investment Bank.
The Bank supports countries in transition by using a combination of investment, advisory work and policy reform, with a focus on developing the private sector and bringing about sustainable change.
(Source: EBRD)
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