The EBRD's Strategic and Capital Framework and Strategy Implementation Plan

The EBRD’s Strategic and Capital Framework (SCF) for 2026-30 outlines the aims of our activities and investments over that period. Underpinned by our mandate of fostering the transition towards open market-oriented economies and promoting private and entrepreneurial initiative, this third iteration of the SCF seeks to build on the success of its predecessors as the Bank grows in size and scope.

This growth will have two main elements: first, the deepening of our support for Ukraine, which will be the Bank’s central strategic objective under this SCF; and second, the expansion of our operations into sub-Saharan Africa and Iraq. In line with our longstanding goal, the SCF also seeks to direct three-quarters of our cumulative finance over the period to the private sector, while continuing to commit at least half of all annual investment to green projects.

The SCF 2026-30 comes at a time of challenging economic and geopolitical conditions, but we and our shareholders believe these circumstances make our mandate – which is focused on the private sector and rooted in the principles of democracy, pluralism and market economics – as relevant and as important as at any time in our history.  

Our central strategic objective under the SCF 2026-30 will be the provision of exceptional support to Ukraine to help maintain livelihoods and lay the ground for a prosperous future. Already the biggest institutional investor in the country, we are now aiming to invest at least €1.5 billion a year as long as the conflict continues, and anticipate this rising to at least €3 billion a year once the country enters a period of sustained stability and begins reconstruction.

This growth will be enabled by the Bank’s paid-in capital increase and our spending will continue to focus on supporting the real economy by investing in the private sector and providing vital infrastructure, notably in the transport and energy sectors.

Anticipating the eventual return of more stable conditions, we plan to step up our investment and policy activities in the financial, infrastructure and corporate sectors to support investor confidence and integration with the wider European economy. We are currently working with partners in Ukraine to strengthen the country’s ability to prepare for and enable investment in sustainable infrastructure when conditions allow.

The EBRD will also boost its support for other countries of operation that continue to encounter physical and financial disruption as a result of the war on Ukraine. We will also increase our investment in countries less advanced in their transitions, especially where reform potential is high. These include parts of Central Asia, the Western Balkans and the southern and eastern Mediterranean, as well as our new countries of operation.  

We see strong potential for impact in our new countries of operation and are looking forward to beginning work in Benin, Côte d’Ivoire, Ghana, Kenya, Nigeria and Senegal, as well as in Iraq.

Collaboration and close coordination will be particularly important in these new areas of our activities. We will pay particular attention to adding value to the work of the many successful development partners already active in these countries, and our strategies for these economies will be built up and tailored in partnership with these development bodies, as well as with governments and stakeholders.

Learning from the experience of others will be crucial, especially in the initial stage of our operations. But our approach will also be informed by our unique experience and distinctive mandate among multilateral development banks (MDBs) – of fostering private-sector-led growth.  

The EBRD enters the SCF 2026-30 period from a position of strength, with the decisions to increase our capital base and expand geographically showing the confidence our shareholders have in our approach.

Our goal is to foster comprehensive change in our countries of operation as they seek to develop economies that are competitive, well governed, green, inclusive, resilient and integrated, supporting prosperity for all their citizens. As we work to deliver these objectives, we will also focus on deepening our transition impact by pursuing three core strategic themes that align with our experience and where we see the opportunity to make a real difference:

• Green transition 
• Economic governance 
• Human capital and opportunity for all

Why it matters: the climate crisis and biodiversity loss are urgent global challenges. Many EBRD countries – particularly in the southern and eastern Mediterranean and Central Asia – face increasing risks from these and other related issues. Extreme weather, water stress and energy insecurity are real threats to their economic stability and the prosperity of their people.

The green transition offers a way not just to tackle this, but also to allow these countries to strengthen their competitiveness and economic resilience. However, realising these opportunities will require estimated investment of over €500 billion per year in our regions by 2030 – five times the current level. This growth can only be achieved through systemic change, with deep-rooted policy reform and financial realignment needed to encourage more support to flow towards the green economy.

The EBRD will help enable this by committing at least half of our annual investment to the green transition, scaling our financing to match demand in our countries of operation. We will also step up policy engagement to raise awareness of climate risks, develop innovative financing tools (such as nature finance) through capital markets and work with fellow MDBs to develop best practice in mainstreaming biodiversity considerations into investments.  

Why it matters: strong governance is essential to create fair, efficient and transparent economies in which competition and entrepreneurial, private-sector initiatives can flourish. However, economy-wide governance standards are lower in our countries of operation than in most advanced comparator countries.

The economic role of the state has also risen in recent years, initially due to the impact of Covid-19, but also stemming from increased use of industrial policy interventions, creating risks of badly designed and distortive policies.

Under the SCF 2026-30, the EBRD will structure its work to promote sound economic governance around three core objectives:

• Supporting private-sector development and competitiveness. How? By identifying and addressing obstacles to investment in key areas such as energy, mining and telecoms, helping remove market distortions and foster healthy competition.
• Leveraging public-sector investment to achieve systemic reform. How? By using our influence, built up over 35 years, to improve governance of state-owned enterprises (SOEs). This can enhance efficiency and transparency in markets where these SOEs operate – predominantly energy, infrastructure and telecoms – and encourage flows of private capital into these areas.
• Increasing local capacity to design and deliver systemic reforms. How? By developing administrative capabilities and offering policy advice in our investee economies, enabling them to design reforms that promote competitiveness and transparent public procurement, creating a better business climate.  

Why it matters: inclusive economies are more resilient and productive. They draw on the full potential of all people to maximise overall prosperity and long-term growth. Yet, many people – especially women, young people and displaced populations – face barriers to economic participation in our regions.

In addition, labour market demand is evolving, due to demographic shifts and changing skill requirements brought on by technological advances and other factors. This is creating an increasing need to develop human capital to meet the evolving needs of private-sector firms.

We aim to help our recipient economies create sustainable growth by broadening access to skills and jobs. High-quality digital and green skills will be a focus, given the strong growth potential in these areas. We will also work to help displaced people develop skills so they can reintegrate into the labour market – an approach we will continue taking with returning and injured veterans in Ukraine.

Startups and small and medium-sized enterprises also need access to capital. This is why we will work with regulators and banks to expand inclusive finance by helping them to reassess their policies and practices.

Empowering underserved groups is a source of economic growth. These groups can also be supported through investments in inclusive infrastructure services and public goods – everything from broadening IT connectivity to improving the availability of safer, more accessible public transport systems, so that people can engage with employers and training opportunities, digitally and physically.  

Two central strategic enablers will help us bring all of this to fruition:

• Developing and deploying digital technology. Digitalisation is a powerful driver of productivity and inclusion, serving the EBRD’s core aim of supporting well-functioning market economies. By investing in digital infrastructure and helping our clients adapt and innovate in the digital domain, we can help economies transition, support human capital and enable green growth.
• Boosting the mobilisation of private-sector capital. Our aim is to mobilise at least €5 billion of private-sector investment every year in 2026-30. Incentivising more third-party investment will require improved business climates and better functioning capital markets. New financial instruments will be key, including significant risk transfers – whereby banks transfer credit risks associated with a portfolio of assets to third parties, reducing their own regulatory capital requirements and thus increasing credit availability – and, potentially, hybrid capital, which combines features of debt and equity.

Overall, the SCF 2026-30 sets an ambitious but achievable path for the EBRD to deepen its impact, especially in Ukraine and other economies facing major transition challenges, including our new countries of operation.