OPEC Fund Annual Report 2024

03 | THE DELIVERY – GRANTS

GRANTS

Granting respite for health and climate in Somalia

Grants kickstart change and build capacity, while tackling the various needs of vulnerable communities — particularly in the world’s poorest countries. In 2024, the OPEC Fund provided US$14 million in grants to partner countries worldwide.

More than nine million Somalis — well over half the population — are living through a potent mix of conflict, drought, flooding and disease, according to the UN Office for the Coordination of Human- itarian Affairs (OCHA). The national government is working hard to assist its people, but substantial debts have long been a barrier to progress. In March 2020, Somalia qualified for the Highly Indebted Poor Coun- tries Initiative (HIPC), established by the World Bank and Interna- tional Monetary Fund. That milestone has helped the country access concessional finance and reduce its external debts from 64 percent of GDP in 2018 to less than 6 percent by the end of 2023. Under the HIPC initiative, the OPEC Fund has agreed to grant US$3.03 million to the government of Somalia for the Sustain- able Management of Agroforestry Resources with Technology for Clean Cooking, a cross-cutting program that contributes to several Sustainable Development Goals. Part of a larger financing package totaling US$42 million, including a US$36 million HIPC loan, the grant is laying the foundations for change. It is drawing communities away from charcoal production, which severely harms human health and the wider environment, and on to more sustainable livelihoods and cleaner cooking alternatives. Working with public and private sector partners, the grant is funding pilot projects in agroforestry and clean cooking infrastructure. In parallel, the OPEC Fund grant is providing educational, technical and financial support to small and micro enterprises led by women and youth. It is therefore helping some of the most vulnerable members of society in one of the poorest countries in the world.

BIHI IMAN EGEH Minister of Finance, Somalia

“This grant is being rolled out in line with the OPEC Fund Clean Cooking Initiative and covers such critical areas as infra- structure, agroforestry and community empowerment. It is aimed at promoting electric and gas clean cooking in key places like schools and hospitals.”