DEVELOPMENT NEWS
First loan to South Africa will enhance infrastructure services
The OPEC Fund has signed its first loan agreement with South Africa, which will support reforms to infrastructure services in the energy and transport sectors and advance the country’s low- carbon and just transition agenda. The US$150 million financing will bolster the government’s efforts to address key infrastructure bottlenecks, strengthen long-term energy security and improve freight transport systems that are critical for domestic and international trade.
Photo: Sunshine Seeds/Shutterstock
Promoting economic growth in Jordan
A US$75 million policy-based OPEC Fund loan will help Jordan introduce reforms aimed at fostering private sector-led growth and increasing access to finance. The loan represents the second tranche, bringing the total financing to US$150 million. The program is designed to
tackle core constraints holding back the country’s economic development. Reforms under the first pillar aim to reduce business operation costs, promote competition and facilitate trade. The second pillar focuses on enhancing the regulatory framework for non-bank financial institutions, strengthening credit infrastructure and fostering the growth of green finance.
Stimulating the cotton industry in Burkina Faso The OPEC Fund is joining a trade finance facility to aid the Government of Burkina Faso in financing the purchase of seed cotton from domestic producers for processing and exporting. The €15 million contribution from the OPEC Fund will help Burkina Faso maintain its position as one of Africa’s leading cotton producers. The crop plays a strategic economic role, contributing significantly to export earnings and supporting the livelihoods of millions of smallholder farmers across the country. Developing eight harbors in the Maldives Harbor infrastructure in the Maldives is a pillar of economic and social resilience. A US$40 million OPEC Fund loan will finance the development of eight harbors on eight islands, significantly improving local mobility by linking isolated communities to essential regional services. They will also act as catalysts for decentralized economic growth by fueling tourism. The project directs tourism revenue into the hands of local families, creating hospitality jobs and stimulating small business ecosystems.
Financing Viet Nam’s green transition and SME growth The OPEC Fund signed a US$25 million loan with Viet Nam’s Environmental Protection Fund (EVF) to expand access to finance for micro, small and medium-sized enterprises and boost climate-related investments in the country. The financing will enable EVF to expand lending to climate-aligned sectors, advancing low-carbon and environmentally sustainable practices. This supports Viet Nam’s national climate commitments and responds to growing demand for sustainable financing.
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