CHAPTER 1
BACKGROUND
In June 2023, the OPEC Fund for International Development (see box) published its first Development Effectiveness Report. 1 Launched at the OPEC Fund’s 2023 Development Forum, the report marked an important milestone in the OPEC Fund’s journey toward reaching its strategic objec- tives of increased relevance and impact. In line with its growing emphasis on impact, the OPEC Fund has enhanced the way it assesses and tracks the develop- ment effectiveness of the operations it supports. To comple- ment the development effectiveness toolkit applied to new operations, the annual Development Effectiveness Reports provide a summary of the main results achieved by imple- mented operations in the OPEC Fund’s portfolio. Similar to last year’s report, the 2023 Development Effectiveness Report continues to take stock of progress made and knowledge generated on the development results of the OPEC Fund’s activities. The report was prepared by the OPEC Fund’s Development Effectiveness Unit, which is separate from the OPEC Fund’s operational departments and provides guidance and oversight on development effec- tiveness matters. This report provides an update of the results completed projects have achieved since the cutoff date of last year’s Development Effectiveness Report. It also provides an over- view of the SDG alignment of projects approved since the stocktaking exercise. A new feature of this report is an in- depth look at the most pressing development problems: In this year’s report, we put a spotlight on SDG 2 - Zero Hunger and examine the fundamental issue of food security.
ABOUT THE OPEC FUND FOR INTERNATIONAL DEVELOPMENT
The OPEC Fund for International Development (the OPEC Fund) was established in 1976 as a multilateral institution in support of low- and middle-income countries. It is the only globally mandated develop- ment institution that provides financing from mem- ber countries to non-member countries exclusively. The OPEC Fund is committed to the delivery of the Sustainable Development Goals. To date, the OPEC Fund has committed about US$26 billion of its loan and grant resources to over 4,000 projects in 125 partner countries worldwide with a total project value of over US$200 billion. In the regional dis- tribution of commitments, Africa stands at 49 percent, followed by Asia at 29 percent and Latin America & the Caribbean at 15 percent. The OPEC Fund provides fi- nancing through its Ordinary Capital Resources (OCR) and its Special Capital Resources (SCR). OCR funds are primarily used for lending to middle-income countries, certain less-developed countries and to private sector borrowers in pursuit of social and economic develop- ment. SCR resources are used to provide funding at more concessional terms to lower-income countries.
1 https://publications.opecfund.org/view/319943701/
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