OPEC Fund commits $1bn in new financing for developing nations

Source: Pexels

The fund, founded by the Organization of the Petroleum Exporting Countries to fund projects in non-OPEC member states, also laid out a new trade finance initiative to help countries secure imports and liquidity during periods of turmoil.

It comes as the United States and a number of European countries reduce the amount of bilateral aid they provide to poorer countries around the world.

The Vienna-based Opec Fund announced on Wednesday around $720m in new financing to support development efforts across Africa, Asia, Latin America and the Caribbean, and the signing of $362m in new loan agreements.

The agreements included a $300m plan for Rwanda over the next three years as well as programmes worth $65m and $40m, respectively, in Ivory Coast and for the Uganda-based East African Development Bank.

There was also a co-operation agreement with the Central American Bank for Economic Integration for infrastructure, energy and human development projects and the formalisation of a tie up with the Islamic Organization for Food Security on climate-resilient agriculture.

The Opec Fund hosted the annual meeting of the heads of institutions of the Arab Coordination Group (ACG) this week.

The roundtable resulted in an ACG joint pledge of $2bn financing over the next five years. A dedicated Arab Donors Roundtable on the Sahel also discussed greater support for the region's urgent challenges such as drought.