sector employs about 39 percent of the population. The sector predominantly consists of smallholder farmers who rely on subsistence farming and the cultivation of cash crops like coffee, bananas and palm oil for export. Today, Honduras faces considerable challenges due to climate change and its agriculture sector is exposed to significant risks. Extreme weather events such as hurricanes and droughts and unpredictable rain patterns negatively impact crop yields, leading to reduced productivity and income stability for farmers. The PROINORTE project, which the OPEC Fund is co-financing together with IFAD and the government of Honduras, targets some of these challenges in the northeastern region of the country, an area characterized by high poverty and food insecurity. The project aims to enhance incomes and living conditions for some 70,000 people in rural communities and boost livelihoods for women
OPEC FUND ’ S FOOD SECURITY ACTION
In June 2022, the OPEC Fund launched its US$1 billion Food Security Action Plan with projects in Jordan and Paraguay. Channeling public and private sector loans as well as grants, the facility is helping developing countries that were hit by supply and trade disruptions following the war in Ukraine, which pushed up food and fertilizer prices worldwide. The action plan is providing immediate assistance to cover the import costs of basic commodities such as seeds, grains and fertilizers, while supporting the medium- and long-term security of food supply in partner countries. It is by building up the resilience of agriculture sectors and strengthening regional food value chains – all to future-proof against global shocks. Addressing global food insecurity and protecting the most vulnerable and affected populations has always been a priority for the OPEC Fund. Since its establishment in 1976, the Fund has committed US$2.6 billion to agriculture projects, representing more than 10 percent of its total operations. The OPEC Fund has specifically targeted investments in rural infrastructure, development of production and storage facilities, trade in agricultural goods as well as training, capacity and institution building.
Zimbabwe – Smallholder Agriculture Cluster Project (SACP) To help improve food security in Zimbabwe, the OPEC Fund approved a US$15 million loan in support of the Smallholder Agriculture Cluster Project under its Food Security Action Plan. Co-financed with IFAD and private sector partners, the program will help transform small- scale farming and increase farmers’ participation in market-oriented and climate-smart value chains.
and youth. Around 90 producer organizations will be supported to enhance their organizational and business capacities to increase access to market value chains and optimize primary production, transformation and commercialization models.
Investing in research By providing the evidence base necessary to design effective adaptation and mitigation strategies, research plays a pivotal role in addressing the complex challenges posed by climate change in the agriculture sector. Recognizing the importance of research, the OPEC Fund has long supported initiatives that foster innovation in agriculture. In 2018, the OPEC Fund provided a US$200,000 research grant to the International Center for Agricultural Research in the Dry Areas (ICARDA) for a project dedicated to the promotion of efficient and nutritious agri-food systems in South Asia. The goal was to enhance the productivity, profitability, resilience and marketability of micronutrient- rich food legumes such as lentil, chickpea, faba beans and grass pea by incorporating energy and labor-saving
PHOTO: IFAD/Oxfam Novib
Côte d’lvoire – “2PAI-Nord” Project Even though Côte d’lvoire is the world’s leading producer of cocoa and a major exporter of raw cashew nuts, the processing of agricultural products remains negligible and the country depends on agricultural imports rather than realizing its tremendous potential. The “2PAI-Nord” project is designed to demonstrate that alternative approaches are possible – and viable. Financed jointly by the OPEC Fund and the African Development Bank, the project aims to increase private investment, particularly in processing agricultural products like rice, meat and fish, cashews, mango and shea, and facilitate farmers’ access to markets.
PHOTO: Shutterstock.com
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