The OPEC Fund for International Development (OPEC Fund) approves close to US$1 billion in new development financing
OPEC Fund for International Development (OPEC Fund) (www.OPECFund.org) approved nearly $1 billion in new development financing in the final quarter of 2024, including its 190thth A Council meeting is held today in Vienna. These projects will benefit countries around the world and aim to strengthen infrastructure, food security, renewable energy, economic resilience and governance in partner countries.
Abdulhamid Al-Khalifa, President of the OPEC Fund, said: “2024 is a landmark year for the OPEC Fund, with a significant increase in project approvals and commitments in key sectors, helping to strengthen resilience, Develop sustainable infrastructure and combat climate change. Our latest funding round reflects the OPEC Fund’s continued commitment to delivering impactful solutions that bring meaningful change to millions of people around the world. partners to address today’s challenges and build a better tomorrow.”
Projects recently approved by the OPEC Fund since September 2024 (in alphabetical order):
Public sector operations:
Bangladesh: A €96.1 million loan will co-finance a program to strengthen economic management and governance with the Asian Development Bank (ADB). The initiative supports the government’s reform agenda to strengthen private sector development, trade logistics and governance. It aims to improve domestic resource mobilization, increase public sector transparency and promote export diversification.
Burkina Faso: A $30 million loan will support the Human Capital Protection Project, which aims to provide 17 million free medical consultations, vaccinate 1 million children under the age of five and improve education for 91,000 teachers and 748,000 students. The initiative is co-financed by the World Bank.
Chad: A US$16 million loan will be used to facilitate the Chari-Logone rice cultivation development project co-financed with BADEA. The project will benefit 2,000 families, half of whom are women and youth, by improving agricultural productivity, rural infrastructure and agribusiness practices in selected provinces.
Comoros: The $17.5 million loan will support First fiscal management and resilient growth development policies. The program aims to improve debt management, build resilience and strengthen the country’s economic stability and governance framework.
El Salvador: A $30 million loan will co-finance the Rural Adelante 2.0 program in partnership with the International Fund for Agricultural Development (IFAD). The program will support 74,000 smallholder farmers and rural households through improved agricultural practices, market access and climate resilience, ultimately increasing incomes and food security.
Gambia: The $20 million loan will fund the Rural Infrastructure Development Project (Phase 2), which will improve market access for agricultural products by strengthening rural infrastructure. The project will benefit local farmers and communities through intervention in agricultural value chains and improved market connectivity.
Honduras: A $50 million loan will support women’s empowerment and social inclusion programs to promote gender equality and empower marginalized groups, including indigenous and people of African descent.
Kenya: The €60 million loan will co-finance the Economic Inclusion and Green Recovery Support Program with the African Development Bank. The initiative aims to create more inclusive and competitive markets, improve governance frameworks and promote green economic recovery.
Malawi: The US$20 million loan will co-finance the Mangochi-Mwanjati-Makangira road project (Phase 1). The project will benefit approximately 300,000 people by strengthening regional connectivity, reducing travel times and supporting economic development.
mauritania: The US$40 million loan will finance the Mauritania-Mali Power Interconnection and associated solar farm development projects with multiple development partners. The project will provide electricity to 80,000 homes, promote renewable energy and reduce greenhouse gas emissions.
Montenegro: For the first time, OPEC funds have provided 50 million euros in loans to Southeast European countries, which will support flexible fiscal and sustainable development plans. The project focuses on improving financial sustainability, energy efficiency and waste management while reducing greenhouse gas emissions.
Senegal: A $60 million loan will fund the Senegal Food Sovereignty Strategy Support Project to increase agricultural productivity, climate resilience and market access for 220,000 households, with a focus on women and youth.
Sierra Leone: A $30 million loan and a $2 million grant will support livestock and livelihood development initiatives. The initiative will increase livestock productivity, build small and medium-sized enterprises and improve nutrition and incomes in rural communities. It is expected to create about 20,000 new jobs in the agricultural value chain and contribute to the sustainable development of agriculture.
Sri Lanka: A $50 million loan will co-finance the second Resilience, Stability and Economic Turnaround Development Policy Action to restore macroeconomic stability, improve fiscal governance and protect vulnerable groups.
Türkiye: The €50 million loan to the Climate Finance Fund project will support investments in renewable energy, energy efficiency and climate adaptation. The project will be implemented by Türkiye’s Industrial Development Bank (TSKB) and is aligned with Türkiye’s 2053 net-zero emissions target.
Uzbekistan: The €70 million loan will support the second plan for the development of an inclusive and resilient market economy. The initiative focuses on improving fiscal risk management, increasing social inclusion and promoting private finance for climate action.
Private sector business:
Cote d’Ivoire: The €35 million loan to local banks will support on-lending to small and medium-sized enterprises (SMEs) and address the financing gap for local businesses. The loan will improve access to finance for small and medium-sized enterprises, boost economic growth and create jobs. Small businesses represent almost all businesses in Côte d’Ivoire.
Côte d’Ivoire: €50 million in participation in the trade finance facility will support traceable cocoa sourcing and exports, benefiting 1 million producers and 5 million people dependent on the cocoa industry.
Dominican Republic: The $10 million loan to local banks will support on-lending to micro, small and medium enterprises (MSMEs) and women-led businesses, thereby promoting economic growth and financial inclusion.
Egypt: The $40 million loan will support the construction of two wind farms with a combined capacity of 1.1 GW in the Gulf of Suez. The renewable energy project will provide clean energy to more than 1.3 million households and contribute to Egypt’s goal of generating more than 40% of its electricity from renewable energy sources by 2035.
Ghana: The $20 million in participation in a secured trade finance facility will support the purchase, storage and processing of cocoa beans. The facility will help expand the supply of high-quality cocoa to global markets.
Paraguay: A $40 million syndicated loan to a local bank will support growth and agricultural project financing in the bank’s SME loan portfolio, including women-led SMEs and green energy initiatives.
Uzbekistan: The US$30 million loan to the joint-stock innovative commercial bank “Ipak Yuli” will expand lending to micro, small and medium-sized enterprises, including women-owned enterprises, boosting economic growth and job creation.
Technical Assistance Grants:
Region (Asia and Pacific): A $1.5 million technical assistance grant will support the implementation of the Natural Solutions Finance Center in partnership with the Asian Development Bank (ADB). The initiative aims to scale up investment in nature-based solutions to address biodiversity loss and climate change, with the goal of financing $5 billion by 2030.
Distributed by APO Group on behalf of the OPEC Fund.
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About the OPEC Fund:
The OPEC Fund for International Development (OPEC Fund) is the only globally authorized development institution dedicated exclusively to providing financing from member countries to non-member countries. The organization works with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a clear purpose: to drive development, strengthen communities and empower people. Our work puts people at the center, focusing on financing projects that meet basic needs such as food, energy, infrastructure, employment (particularly related to MSMEs), clean water and sanitation, healthcare and education. To date, OPEC funds have committed more than $27 billion to development projects in more than 125 countries, with total project costs expected to exceed $200 billion. The OPEC Fund is rated AA+ with a stable outlook by Fitch Ratings and AA+ with a stable outlook by Standard & Poor’s. Our vision is a world where sustainability is possible for everyone.
