INTERVIEW
Adebayo Babalola, Director, Strategic Planning, OPEC Fund, shares what client countries are asking from multilateral development banks By Axel Reiserer, OPEC Fund PARTNERSHIPS, DELIVERY AND THE FUTURE OF DEVELOPMENT FINANCE
T he debate on multilateral development bank (MDB) reform often focuses on capital adequacy, balance sheet optimization and scaling development finance. An ODI Global report, Reforming Multilateral Development Banks: Perspectives from Client Countries , adds another dimension by bringing client country perspectives fully into view. Drawing on survey responses from 650 government officials in 125 countries, along with 12 country case studies, the report weighs how client countries see MDBs. They are asking for faster delivery, stronger coordination, better preparation and more effective partnerships. Adebayo Babalola, Director, Strategic Planning at the OPEC Fund, reflects on what the findings suggest for the wider MDB system and why partnerships are central to the future of development finance. OPEC Fund Quarterly : What do we learn from the ODI report? Adebayo Babalola: The main takeaway is that the MDB model remains relevant, but expectations are evolving. Eighty- three percent of respondents rated financing at better than market terms as very or extremely relevant to long-term development. Eighty-four percent said the same for policy advice and technical assistance, 86 percent for convening stakeholders and 76 percent for research and analysis. That combination matters. Countries value MDBs because they bring finance, technical expertise, policy dialogue,
knowledge and convening power. The strongest institutions are those that combine these functions in support of country priorities. OFQ : Why is this discussion important now? AB: The development finance environment has become more difficult. Many countries face higher financing needs, tighter fiscal space, debt pressures and infrastructure gaps. MDBs are being asked to do more, but work differently. Scaling up financing remains essential, but quality of delivery is just as important. Countries need finance that is predictable, coordinated and linked to implementation capacity. OFQ : Coordination is increasingly central to the MDB discussion. Why? AB: The scale of development challenges requires institutions to collaborate more effectively. Energy access, food security, climate resilience, water infrastructure and economic stability require financing packages that often involve several partners. The ODI survey captures this: 48 percent of government respondents rated MDB coordination at country level as good or very good, while 74 percent identified co-financing as the top priority. For the OPEC Fund, this finding is relevant. Around 70 percent of OPEC Fund operations have been co-financed with other MDBs, development finance institutions and bilateral partners. What has changed under the Strategic
Framework 2030 is that partnerships have become more systematic and more closely connected to strategy implementation. OFQ : How has this been reflected in the OPEC Fund’s recent work? AB: One important example is the OPEC Fund’s deeper cooperation with the World Bank. The relationship has moved toward more structured operational engagement, including frequent pipeline discussions and earlier collaboration in the project preparation process. This has supported a significant increase in joint co-financing, rising from around US$200 million in 2023 to approximately US$800 million in 2025. The OPEC Fund has also strengthened its partnership with the African Development Bank. The amended partnership framework and our recent Partnership Day in Abidjan reflect a shared interest in scaling up joint operations, including through a co- financing envelope targeting up to US$2 billion with African Development Fund countries through 2030. OFQ : Why is project preparation at the heart of the MDB reform agenda? AB: Project preparation is one of the most important elements in development finance. If projects are not technically, financially and institutionally ready, delays emerge later in the cycle. The ODI survey identifies support for project preparation as one of the leading recommendations for shortening the project cycle, cited by 53 percent
1 https://odi.org/en/publications/reforming-multilateral-development-banks-perspectives-from-client-countries/
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