“ROOTED IN AUSTRIA, DELIVERING GLOBALLY” The OPEC Fund Private Sector Department hosts a business event to deepen the relationship with its host country's corporate sector
E stablished in 1976, the OPEC Fund has always been based in Vienna, Austria. The country’s proactive promotion of development across the Global South has created numerous opportunities for joint engagements. A business event at the OPEC Fund Headquarters in May served as a welcome refresher of a long-standing relationship. Vice President, Private Sector Khalid Khadduri welcomed participants by underlining the need to join forces: “Development cannot be delivered by one actor alone. Cooperation is the way forward, because partnership powers progress.” He characterized the relationship between the OPEC Fund and its host country with the words: “Rooted in Austria, Delivering Globally.” In its first 50 years the OPEC Fund has frequently worked with Austrian companies and financial institutions, most recently with Raiffeisenbank International (RBI) in Albania, Bosnia-Herzegovina and Kosovo. “I see a lot of potential in working with the OPEC Fund on projects related to energy transformation and
support for local infrastructure,” said Rainer Schnabl, RBI Management Board Member for Corporate and Investment Banking. Sabine Gaber, Member of the Executive Board of the Austrian Development Bank, agreed on the importance of cooperation: “The key is really to come together through good and reliable partnerships like the one we have with the OPEC Fund. It is important that multilateral development banks (MDBs), the public sector and private sector enterprises work together to structure deals with different instruments.” One of the key instruments in the hands of MDBs, participants agreed, is their capacity to provide comfort to investors in order to mobilize much needed funding. In a panel discussion participants identified risk sharing as a crucial instrument to facilitate investment: “It is not just finance,” Vice President Khadduri summarized. “The role of MDBs is to guide companies and help them manage risk.” Because of the comparatively small domestic market, Austrian companies
are traditionally strongly export- oriented, boasting global leaders in selected sectors and markets. They are well known for their strong presence in emerging markets where they regularly punch above their weight. Alexander Schwab, Global Vice President of the machine builder Andritz Hydropower, told the audience “Twenty-five percent of all turbines for hydropower plants worldwide are supplied by us.” In Africa his company is the market leader with a share of around 50 percent. The event attracted some 50 representatives of leading Austrian companies and financial institutions. The offer to deepen cooperation and partnership was very well received: “I see tremendous value in this,” Ms. Gaber said. “We really need to bring together all Austrian stakeholders so we can combine our strengths to help create new markets in the Global South, introduce new technologies and support hidden champions.” Vice President Khadduri agreed: “The feedback I got was extremely positive. I think this was the first step and now we will make sure to follow up.”
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