INTRODUCTION
EXECUTIVE
SUMMARY
The OPEC Fund’s main strategic objective is to maximize its devel- opment impact. In its third edition, our Development Effectiveness Report compiles the results of newly completed projects, exam- ines the alignment of new oper- ations to the Sustainable Devel-
development. Not only is road infrastructure a central compo- nent of SDG 9 (Industry, Innova- tion and Infrastructure) – it is also a critical ingredient in unleashing development under many other goals such as SDG 1 (No Poverty), SDG 2 (Zero Hunger), SDG 8
supported two or more Sustainable Development Goals 91% of operations
opment Goals (SDGs) and provides an update on the implementation of the OPEC Fund’s Results Framework. A special feature in this year’s edition is the Transport Sector, which has historically been vital for delivering sustainable development to our partner countries. The OPEC Fund’s commitment to fostering sustainable development is evident in this comprehensive review of operations approved between July 2023 and June 2024. The analysis found that all operations are expected to contribute to at least one SDG, with a majority (91 percent) supporting two or more goals. On average, each approved project contributes to four SDGs, while one project bene- fits 13 SDGs. The largest share of operations supports SDG 8 (Decent Work and Economic Growth), with 32 opera- tions (71 percent of those reviewed) contributing to this goal. The projects cover various sectors, including working with financial intermediaries to improve access to finance for micro, small and medium-sized enterprises (MSMEs), international trade and agriculture. The OPEC Fund’s oper- ations also frequently support SDG 9 (Industry, Innovation, and Infrastructure), with 60 percent of projects aligned and SDG 13 (Climate Action), which has seen 51 percent of projects contributing. The Development Effectiveness Report highlights specific aspects of development within the context of the SDGs. The focus this year is on transport due to the essential role played in particular by safe and reliable roads in enabling
(Decent Work and Economic Growth) and SDG 11 (Sustain- able Cities and Communities). Numerous studies confirm the vital role of transport connectivity in driving social and economic development by fostering growth, inclusion and the provision of access to critical services such as health- care and education. Road investment needs are driven not only by the devel- opment requirements of a growing global population; they have become even more acute as climate change exac- erbates the damages to road infrastructure caused by extreme weather events. Continuing to invest at current rates is insufficient to meet projected infrastructure needs, with development finance institutions playing an important role in addressing the particularly large investment gaps in developing countries. Recognizing the enormous needs for more and better infrastructure, the OPEC Fund has committed over US$5.4 billion to the transport sector since 1976, with the vast majority (80 percent) of these funds dedicated to building or upgrading roads. Most of this support has benefited partner countries in Africa, followed by Asia and Latin America and the Caribbean. In addition to taking stock of SDG contributions and discussing the importance of transport infrastructure, this report highlights the delivery of development results. The OPEC Fund reviewed all 31 projects (15 trade finance and 16 non-trade operations) completed or reaching Early Operating Maturity (EOM) between July 2023 and
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