The OPEC Fund for International Development committed $1.5 billion to global development last year, focused on helping its partner countries to increase economic resilience strengthen economic growth and job creation through support for micro, small and medium-sized enterprises (MSMEs).
The OPEC Fund, which marked its 46th anniversary on 28 January, provided much-needed funding for infrastructure investments and responded to the COVID-19 pandemic with the full deployment of its $1 billion facility.
The Fund's Director-General, Abdulhamid al-Khalifa, explained that with the solid financials and close relationships with partner countries and clients, the OPEC Fund was able to respond quickly and effectively to the pressing needs in these countries in 2021.
"Our strong delivery benefited a wide range of projects that aim to address people's needs and improve their livelihoods."
Khalifa indicated that the Fund continues to pursue the Sustainable Development Goals (SDGs), as it also makes a sizeable, swift, and effective contribution to the global response to the COVID-19 pandemic.
"As we mark our 46th anniversary and start a new year, our 2021 performance inspires us with confidence and ambition to deliver another sizeable contribution to development this year," said the official.
The OPEC Fund's standing as a multilateral development institution was also recognized in 2021 by Fitch and S&P, two of the world's leading rating agencies.
In their inaugural assessment of the OPEC Fund, Fitch awarded a rating of AA+/Outlook Stable, emphasizing the Fund's "excellent capitalization," while S&P assigned an AA/A-1+, Positive Outlook rating and underlined the OPEC Fund's "strong funding and liquidity positions."
The OPEC Fund established a $1 billion facility fully utilized by the end of 2021, after the COVID-19 outbreak.
In coordination with partner countries and other donors, the Fund adopted an active approval process, enabling the rapid deployment of urgently needed financing.
Operations under the COVID-19 facility included a $70.5 million loan to Jordan supporting a government action plan and a $10.0 million facility to benefit small and medium-sized enterprises in the Maldives.
The Fund allocated $496 million of committed amounts for the financial sector, traditionally used for on-lending to MSMEs or women-led businesses.
Other sectors included agriculture ($211 million), transport and storage ($205 million), energy ($153 million), commodity aid ($137 million), water and sanitation ($20 million), and healthcare ($15 million). Cross-cutting multisector projects received $246 million.
The OPEC Fund financed award-winning projects in the energy sector, which will significantly increase access to energy in partner countries and help address energy transition.
In cooperation with international partners, the OPEC Fund provided loans to support the construction and operation of the Sirdarya power plant in Uzbekistan, the largest private sector-led project in the country to date, and the Temane gas power plant in Mozambique, which is expected to meet the electricity demand of up to 1.5 million households.
OPEC Fund financing was directed to support public sector development initiatives in partner countries with $686 million, while trade finance amounted to $444 million and private sector loans totaled $353 million in 2021.
In terms of regional distribution, engagements in Africa came to $770 million, followed by Asia with $536 million and Latin America and the Caribbean with $177 million.
OPEC member countries established the Fund in 1976 to drive development, strengthen communities and empower people.
