01 | THE HIGHLIGHTS – FOREWORD BY THE PRESIDENT
FOREWORD BY THE PRESIDENT
wider policy and regulatory frameworks, represented the largest segment of institutional funding in 2024.
The OPEC Fund for International Development looks back on 2024 as another eventful year, marked by economic uncertainty and geopolitical instability — amid the deep- ening effects of climate change. Despite the challenging global environment, our insti- tution rose to the occasion and delivered record results with US$2.3 billion in new commitments across more than 70 projects, representing a year-on-year increase of 35 percent. Behind these statistics lie countless human stories of how the OPEC Fund is improving the lives of vulnerable people all around the world. For example:
The success of a project can no longer be measured without due reference to its environmental, social and governance impact. With the introduction of sustainabil- ity-linked loans in 2024, the OPEC Fund for the first time deployed an instrument that matches loan conditions with fulfilment of pre-agreed environmental, social and govern- ance (ESG) criteria and impact targets.
Forged in partnership with peer development finance institutions and the private sector, this conditionality creates a win-win for all.
In 2024, the OPEC Fund marked the 25th anniversary of its private sector window, which is spearheading the delivery of innovative finance. One example is the first syndication that enabled a financial institution from an OPEC Fund member country to provide support to a partner country economy. Institutional partnerships — in various forms — have long been key to the OPEC Fund’s success. A co-financing agreement signed with the World Bank Group in October 2024 marked a milestone in making project design and implementation faster and more cost-effective through increased cooperation at all stages to guarantee the best use of shareholders’ and investors’ financial resources. In a historic first, the OPEC Fund and the Inter-American Development Bank (IDB) executed an exposure exchange agreement. The OPEC Fund deepened its cooperation with partners via knowledge sharing and by attending key international events — including the UN Climate Change Conference (COP29) and the UN Conference to Combat Desertification (COP16) — and by hosting events like the annual OPEC Fund Development Forum, the inaugural
• A US$20 million loan to Malawi is boosting agriculture and food security for more than 100,000 people,
• a US$10 million loan for micro and small businesses in the Dominican Republic is kickstarting the local economy,
• a landmark 1.1 GW wind farm in Egypt and the largest onshore facility in Africa, co-financed by the OPEC Fund with a US$40 million loan, will provide clean energy to more than a million local households. The OPEC Fund has a long and successful track record in delivering cost-effective and impactful projects. Through its Climate Action Plan and Food Security Action Plan, the insti- tution has addressed the most pressing global issues, while continuing to finance long-term development solutions. In response to our partners’ needs, we are increasingly combining project financing with creating and fostering environments in which projects can succeed. That is why policy-based lending, which embeds individual projects in
12
Powered by FlippingBook