INTRODUCTION
EXECUTIVE
SUMMARY
The OPEC Fund for International Development achieved a signifi- cant milestone with the publica- tion of its inaugural Development Effectiveness Report during the OPEC Fund Development Forum in June 2023. This year’s edition
areas, with most earning their living from subsistence farming. Smallholder farmers encounter significant barriers to improving productivity, including insecure land tenure, worsening effects of climate change and restricted
15.7 MN people gained improved access to healthcare
takes stock of progress made since last year’s report and introduces a new feature which focuses in detail on a par- ticular development issue: starting with food security under SDG 2 - Zero Hunger. The OPEC Fund’s commitment to advancing the SDGs is evi- dent in this comprehensive review of projects approved from July 2022 to June 2023. The analysis found that all approved projects during this period aligned with at least one SDG, with 60 percent of projects supporting two or more goals. The goal most frequently supported by OPEC Fund opera- tions was SDG 8 - Decent Work and Economic Growth, with 72 percent of projects contributing, such as by supporting in- creased access to finance for micro, small and medium-sized companies or policy reforms for sustainable economic de- velopment. SDG 9 - Industry, Innovation and Infrastructure and SDG 1 - No Poverty were the second- and third-most supported goals. Overall, projects approved during the re- view period are expected to contribute to all 17 SDGs. Beginning with this issue, the Development Effectiveness Report highlights specific aspects of development within the context of the SDGs. The focus this year is on SDG 2 - Zero Hunger, and food security in particular. Food secu- rity is closely linked to agriculture and rural development since around three-quarters of the world’s poor live in rural
market access. In addition to structural constraints to agri- cultural productivity, food prices and supply have also been severely affected by the COVID-19 pandemic and the war in Ukraine, further exacerbating food insecurity and poverty in many OPEC Fund partner countries around the world. Support to agriculture, rural development and food secu- rity has long been an important focus of the OPEC Fund given the pivotal role these sectors play in inclusive eco- nomic growth and improved livelihoods. Since its inception in 1976, the OPEC Fund has committed over US$3.5 billion in loans (15 percent of total commitments) to food security projects. Furthermore, the recent US$1 billion Food Secu- rity Action Plan (FSAP), launched in response to the effect the war in Ukraine has had on global food supplies, under- scores our commitment to addressing immediate, medium, and long-term food security needs. By October 2023, the OPEC Fund had approved US$547 million for 16 projects under the FSAP, highlighting its rapid and impactful re- sponse to the urgent challenges facing partner countries, with a collaborative approach involving key institutions such as the World Bank and International Fund for Agricul- tural Development (IFAD).
The report also presents a comprehensive analysis of the development results of the OPEC Fund’s 23 non-trade
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