OPEC Fund Quarterly - 2023 Q2

DEVELOPMENT NEWS

Supporting vocational education in China

Boosting agribusiness in Paraguay US$50 million OPEC Fund loan will help grow small businesses

Quality education to address growing market demand for skilled labor T he OPEC Fund is providing two loans to the People’s Republic of China to promote vocational and technical education. A loan of US$50 million will support the Shijiazhuang Vocational Education Project in Hebei Province, while another US$20 million loan will finance the Lanzhou Vocational Education Project in Gansu Province. The financing will ensure inclusive and equitable quality education while supporting lifelong learning opportunities. OPEC Fund Director-General Abdulhamid Alkhalifa said: “These projects mark another milestone in our fruitful cooperation, which started in 2007. In the last decades, China has made remarkable progress in achieving economic development and lifted millions of people out of poverty. The OPEC Fund is contributing to these efforts by supporting vital sectors such as education.” The OPEC Fund-sponsored projects will expand and strengthen the capacity of the existing vocational education system in China, delivering market-oriented education to approximately 25,000 young job seekers and about 30,000 professional and skilled workers each year. The projects align with China’s “Education Modernization 2035 plan”, which aims to develop a more skilled workforce and better align the country’s education system with its socio-economic needs. The loans provided by the OPEC Fund will help to advance this key development goal. Since 2007, the OPEC Fund has actively supported China’s development agenda by providing financing for sectors such as education, health, energy and water & sanitation.

T he OPEC Fund is providing a US$50 million loan to Banco Continental S.A.E.C.A. for on-lending to small- and medium-sized enterprises (SMEs). The investment is part of the OPEC Fund’s Food Security Action Plan and will supply financing needs of farmers of agricultural and livestock SMEs, which are key for Paraguay’s economic sustainability and employment. Agriculture is a critical sector of the country’s economy. Food exports such as beef products, soybeans, corn, rice and seeds are the primary source of foreign currency. However, the sector remains underserved by financial institutions and businesses lack access to long-term financing due to risks such as vulnerability to climate change. The OPEC Fund’s loan will provide much-needed finance to companies and promote financial inclusion and increased productivity. OPEC Fund Director-General Abdulhamid Alkhalifa said: “Global food security is a priority area for the OPEC Fund and it is critical to support

agribusinesses in food exporting countries such as Paraguay. Building on our strong partnership with Banco Continental we are reaching businesses in this vital sector for Paraguay’s economy, ensuring that enterprises have access to funds, increase links to global value chains and contribute to the economic sustainability.” The OPEC Fund has provided two previous loans to Banco Continental amounting to US$25 million to promote international trade and support SMEs. The new loan is aligned with United Nations’ Sustainable Development Goal (SDG) 1 – No Poverty; SDG 2 – Zero Hunger; and SDG 8 – Decent Work and Economic Growth. Responding to global food supply disruptions and insecurity the OPEC Fund launched its Food Security Action Plan in June 2022, dedicating US$1 billion over three years to provide assistance to cover the import costs of basic commodities such as seeds, grains and fertilizers, while supporting medium and long-term security of food supply in partner countries.

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