OPEC Fund Annual Report 2020

THE OPEC FUND

Director-General’s foreword

of partner countries, and deepening its contribution to the Sustainable Development Goals (SDGs).

Welcome to the Annual Report of the OPEC Fund for International Development – the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. All developing countries, with the exception of the OPEC Fund’s own members, are eligible for this assistance. This publication provides a detailed overview of the work the organization undertook during 2020 in support of sustainable development. The year-in-review was un- like any other. The global health emergency caused by COVID-19 threatened to undo decades of development progress. The OPEC Fund responded quickly, allocating up to $1bn to assist partner countries and private sector clients to address the impact of the pandemic. See pages 17–21 for a detailed breakdown of COVID-19-specific assistance. The pandemic does not end with a vaccination. The small- and medium-sized enterprises that are so crucial to developing country economies have experienced shocks that risk turning into long-term job losses and closures. This will disproportionately affect low-skilled workers and other vulnerable groups. Similarly, school closures have affected already disadvantaged communities the most. Children from households facing economic challenges were much less likely to have engaged in learning activi- ties following school closures than children from wealth- ier households. We know from previous experience that crises hurt the poorest communities more – and these communities can be slower to recover. Against this backdrop, and following the approval of its Strategic Framework 2030, the OPEC Fund sharpened its focus on development impact, strengthening its position to deliver ever more responsively to the changing needs

In 2020, in line with its Strategic Framework, the OPEC Fund enhanced the management of its capital resources by creating a special fund known as the Special Capital Resources (SCR). The SCR allows the organization to grow its operations in the least developed countries by providing long-term and low-cost loans to support economic and social development. The existing capital resources of the OPEC Fund, renamed Ordinary Capital Resources (OCR), will enable the organization to continue to deploy financing to developing partner countries with a higher level of economic development and to private sector clients. During 2020, the OPEC Fund committed fresh develop- ment finance of $1,203m from the OCR and $387m from the SCR – a total of $1,590m – for operations in more than 30 countries across Africa, Asia, Latin America and the Caribbean, and Europe. Driven by the organization’s strategic priorities, all operations supported sustainable development in sectors including agriculture, energy, transport & storage, water & sanitation, education and health, aligning clearly with the SDGs. The year 2020 has proven beyond doubt that today’s challenges must be faced together, with each partner bringing different strengths to bear. By working with oth- ers across sectors and borders, the OPEC Fund creates opportunities for progress, all the while remaining agile and innovative. Over the coming pages, we illustrate how this cooperation amplifies impact.