FIFTY YEARS
THE OPEC FUND FOR INTERNATIONAL DEVELOPMENT
FIFTY YEARS OPEC FUND
WHERE PARTNERSHIP POWERS PROGRESS
Fifty Years of Delivering Development That Matters
PREAMBLE
Fifty years ago, the OPEC Fund’s member countries made a deliberate choice:
to come together in support of countries facing similar development challenges, and to direct resources beyond their own borders. That commitment — to act collectively, collaboratively and outwardly — remains at the heart of the institution today. Over five decades, it has translated into investments that connect communities, expand access to essential services and create opportunities for growth.
As needs have evolved, so too has the institution — growing in scale, reach and complexity. From early balance-of-payments support to today’s multi-sector financing across the public and private sectors, it has continuously adapted while maintaining a consistent focus on results. This publication reflects that journey. It tells the story of how five decades of shared commitment have translated into practical development support, institutional growth and meaningful improvements in people’s everyday lives.
THE OPEC FUND AT FIFTY
Many milestones line the road of development As the OPEC Fund marks its 50-year anniversary, here’s a look at some of the key moments along the way in providing a half-century of service to the countries most in need.
1976
1977
First agriculture sector project — US$1.7 million loan to Jordan for the Northeast Ghor Canal
The OPEC Special Fund established on January 28 with an initial endowment of US$800 million — following the first OPEC Summit in Algiers in March 1975, proclaiming a “new era of cooperation”
First grant signed — US$1.5 million to the United Nations Development Programme (UNDP) for the Central American Energy Program International Fund for Agricultural Development (IFAD) established following contributions from several international donors, including the OPEC Special Fund 1978 100th loan signed — US$3 million balance-of-payments agreement with Burkina Faso 1979
The OPEC Special Fund becomes operational in August Ibrahim Shihata appointed first Director-General
First transaction signed — US$7.5 million balance-of- payments loan to Sudan
The OPEC Special Fund moves to Palais Strudlhof, its first standalone headquarters, in Vienna, Austria
1982 The OPEC Fund moves into new HQ on Ringstrasse
First renewable energy project signed — US$3.5 million for the El Cajón Hydroelectric Project in Honduras 1980 The organization becomes a permanent legal entity as an international development agency Renamed The OPEC Fund for International Development 1981
First education project signed — US$3.3 million for a technical education project in Papua New Guinea
Disbursements exceed US$1 billion 1983
Headquarters Agreement with Republic of Austria signed
Y. Seyyid Abdulai succeeds Ibrahim Shihata as Director-General
100th grant signed — US$500,000 for the establishment of the African Centre for Fertilizer Development in Zimbabwe
Palais Erzherzog Wilhelm (Deutschmeister-Palais) purchased as new headquarters in Vienna
1985
1987 First vocational education projects signed — loans totaling US$2.5 million to Dominica, Grenada, St. Kitts, St. Lucia and St. Vincent and the Grenadines 1988
First health project signed — US$3.2 million for the Msambweni and Webuye Hospitals Project in Kenya First livestock project signed — US$1.4 million for the Dembou Dairy Project in Niger
First multi-sector project signed — US$4.8 million for the Priority Works Project in Ghana First higher education project signed — US$3 million for the Botswana Polytechnic Project 1990
First primary education project signed — US$1.5 million for Benin 1986
500th signed loan — US$5 million education project in Madagascar
10th anniversary seminar features President of Austria Rudolf Kirchschläger, former Chancellor Bruno Kreisky and member country ministers
1991
1995
US$6 million loan to the Rural Electrification Project in Burkina Faso 1996
US$10 million loan for Sudan’s Third Commodity Import Program
US$3.8 million committed for the Rural Roads Rehabilitation Project in Jamaica 1994
US$2.5 million loan to the Atoll Schools Upgrading and Expansion Project in the Maldives 1997
Cooperation with the Carter Center on Guinea worm disease begins The OPEC Fund joins debt relief program for Heavily Indebted Poor Countries through first agreements with Bolivia, Burkina Faso, Guyana and Mali
First loan to emerging Europe — US$5 million for the Durres General Hospital Project in Albania US$50 million loan benefiting the IMF’s Enhanced Structural Adjustment Facility
1998
2001
Former US President Jimmy Carter visits headquarters marking humanitarian cooperation in Africa
HIV/AIDS account launched with an initial US$15 million
First infrastructure project in Central Asia with US$8 million loan for road rehabilitation in Tajikistan 2002 Special grant accounts for humanitarian aid and support for Palestinians, focusing on agriculture, businesses, education and health Special grant to host country Austria for flood relief 2003 1000th loan approved — US$6.6 million for a vocational training project in Namibia
US$4.3 million commitment to the Bagre Dam Project in Burkina Faso 1999
Private Sector operations start with a financing package for Mauritania Leasing, the precursor to Banque Populaire de Mauritanie
Suleiman J. Al-Herbish succeeds Y. Seyyid Abdulai as Director-General US$20 million allocated for famine response in Sub-Saharan Africa
2004
Rebranded as OFID, new logo introduced 2007 Third OPEC Summit in Riyadh emphasizes energy access and poverty eradication 2008 Energy for the Poor Initiative launched with global advocacy for universal energy access 2009 First investment in the Eastern and Southern African Trade & Development Bank (TDB)
Humanitarian aid to countries affected by Southeast Asia earthquake and tsunami
US$9.9 million provided to the Sivas-Erzincan Development Project in Türkiye 2006 United Nations General Assembly Observer status granted
Inaugural Annual Award for Development to HUMANA People-to-People Zimbabwe, supporting communities in health, education and sustainable agriculture
US$600,000 grant to King Hussein Cancer Foundation in Jordan 2010 US$11 million loan for Teacher Training Colleges Project in Malawi US$7 million Geothermal Power Generation Project in Djibouti
Trade Finance operations begin with first financing in support of Seychelles
2011 First disbursements under new special grant account for energy programs 2012
2013 US$600,000 WASH grants for cholera prevention in Chad and Cameroon 2014 US$10 million Falcon Ma'an Solar Power Project in Jordan
OFID is a key partner in the Sustainable Energy for All (SE4ALL) Initiative
US$1 million grants for clean cookstoves in cooperation with the Shell Foundation in Sub-Saharan Africa, Latin America and the Caribbean
OFID THE OPEC FUND FOR INTERNATIONAL DEVELOPMENT
Parkring 8 P.O. Box 995
A-1010 Vienna, Austria Tel.: (+43 1) 515 64-0 Fax: (+43 1) 513 92 38
www.ofid.org info@ofid.org
US$1 billion pledge for Energy for the Poor Initiative at Rio+20 Summit, later converted into revolving facility
Emergency aid exceeds US$100 million
US$15 million wind energy project in Pakistan
US$20 million loan for water and sanitation project in Maldives 2015
Young Professional Development Program begins
US$500,000 solar thermal project grant with Austrian Development Agency across Sub-Saharan Africa
US$500,000 solar mini-grid grant in Guinea-Bissau
2016
2019 Strategic Framework 2030 approved
Equal Dreams campaign highlights plight of young refugees Four refugee grants signed totaling more than US$2 million 2017
Temane Power Plant Project in Mozambique combines public (transmission) and private sector (generation) financing 2020
US$17 million Baynouna Solar Power Plant Project in Jordan US$18.52 million road rehabilitation project in St. Vincent and the Grenadines 2018
US$1 billion allocated for COVID-19 pandemic response 2021
Name returns to OPEC Fund for International Development US$18 million loan for award-winning Kom Ombo Solar Power Project in Egypt
Abdulhamid Alkhalifa succeeds Suleiman J. Al-Herbish as Director-General
Credit rating AA+ with Stable Outlook from Fitch Ratings
2022
2024 US$50 million package to strengthen energy security with hydropower plants becomes first loan to Bhutan
First sustainability-linked loans signed
The OPEC Fund arranges first loan syndication between Commercial Bank of Dubai and Banco Continental Paraguay €50 million trade finance loan for Sucden cocoa trading house, supporting traceable and sustainable cocoa exports
First OPEC Fund Development Forum held in Vienna
Food Security Action Plan adopted
US$1 billion pledge to Riyadh Global Drought Resilience Partnership 2025 Green-Blue Connect launched with US$3 billion volume, connecting climate adaptation with climate mitigation
Climate Action Plan adopted
Climate Finance and Energy Innovation Hub launched 2023
The OPEC Fund issues inaugural US$1 billion SDG bond on London Stock Exchange
US$50 million Khizi-Absheron wind power plant in Azerbaijan
Pledge of up to US$2 billion for Mission 300 electricity access initiative for Sub-Saharan Africa
US$20 million loan to Botswana supporting MSMEs
Cumulative disbursements exceed US$25 billion
FOREWORD BY THE PRESIDENT
As the OPEC Fund for International Development marks its 50th anniversary, we reflect with pride on our remarkable journey and look ahead with purpose to the work that lies before us. Over five decades, our institution has not only delivered tangible results but also accumulated the experience and insight needed to navigate an increasingly complex and uncertain world. Today’s global landscape is defined by profound challenges. Geopolitical conflict, economic volatility, climate pressures, technological disruption and demographic shifts are testing the resilience of communities and institutions alike. Progress toward the United Nations Sustainable Development Goals has slowed, and in some areas reversed. These realities demand clarity of purpose and renewed commitment. At such moments, perspective matters. In 1976, the year of our founding, global GDP stood at US$6.3 trillion, with average per capita income at US$1,585. By 2025, global GDP had risen to US$117.2 trillion and per capita income to over US$14,000. Across these decades, the world has witnessed significant gains in reducing extreme poverty, improving public health, expanding education and advancing food security. This progress affirms what is possible when collective action is sustained over time. For five decades, the OPEC Fund has supported countries in advancing their development. Since inception, we have committed tens of billions to development, supporting infrastructure, strengthening societies and expanding opportunity worldwide. Our commitments to key sectors including transport, energy, agriculture, financial institutions, health and water and sanitation have enabled countries and communities to build the foundations of inclusive and sustainable growth. Yet the true measure of development lies beyond financial volumes. It is found in the lives improved and the potential unlocked. Between 2018 and 2025 alone, OPEC Fund-supported projects provided 3.2 million households with access to electricity, installed 6.2 GW of power generation capacity (1.5 GW renewable) and enhanced healthcare services for 33.9 million people. These outcomes represent dignity restored and futures made possible.
During my visits to our partner countries, I am continually reminded that development is, at its core, about people. It is seen in a child gaining access to school because a road now connects her community; in an entrepreneur able to grow a business through access to finance; and in a farmer increasing productivity through modern irrigation. These are the enduring impacts that define our work. This publication captures the breadth of our journey — what we have achieved, what we have learned and how we will move forward. One lesson stands above all: progress depends on the ability to adapt with agility while remaining anchored in experience and purpose. Development is not static: it requires institutions that evolve in step with the needs of those they serve. We also pay tribute to the partnerships that have made this journey possible. The resilience and determination of our partner countries drive progress on the ground, while the vision and solidarity of our member countries provide the foundation for our collective action. Together, these partnerships embody our anniversary theme: Where Partnership Powers Progress. From its origins as a Special Fund to its evolution into a globally respected development finance institution with a strong presence in international capital markets, the OPEC Fund has grown in scale and ambition. Yet our core ethos remains constant. Solidarity — between nations, between partners and with the communities we serve — continues to define who we are. As we mark this Golden Jubilee, we reaffirm our commitment to advancing sustainable development that delivers meaningful and lasting change in people’s lives. The challenges ahead are significant but so too is our resolve. Guided by five decades of experience and strengthened by enduring partnerships, we will continue to work toward a world where sustainable development is a reality for all.
Abdulhamid Alkhalifa President, The OPEC Fund for International Development
TABLE OF CONTENTS
Chapter 1 24 This is the OPEC Fund: A Distinctive Model for Development Chapter 2 46 The Journey: From Shared Commitment to Global Institution 60 Case Studies
74 Focus Topic Agriculture — Feeding the World
Chapter 3 78 Development in Action 84 Case Studies
96 Focus Topic Energy and Climate — Catalyzing the World
Chapter 4 100 Expanding the Toolkit 110 Case Studies
118 Focus Topic Infrastructure — Building the World
Chapter 5 122 Going Further, Together: Partnership as a Force Multiplier 136 Case Studies
144 Focus Topic Women in Development — Working for a Fairer World
Chapter 6 148 The Future 152 Shripad Tuljapurkar and Wenyun Zuo, Human population and the future of the world
156 Huck-ju Kwon, A new social contract in an age of population decrease
160 Gargee Ghosh, Technology can usher in a new golden age in healthcare
164 Gernot Wagner, The future of climate finance
168 Amir Lebdioui, What my mother’s couscous teaches us about green industrial policy
172 Deemah AlYahya, Shaping the next 50 years: Artificial Intelligence, technology and the future of sustainable development
176 Jacopo Ottaviani, “Those in the darkness drop from sight”
180 Benedict Okey Oramah, Deglobalizing multilateralism to future-proof development financing
184 Andreas Klasen, Innovation in international public finance
1 THIS THE
IS
OPEC FUND
A DISTINCTIVE MODEL FOR DEVELOPMENT
Fifty years. More than 125 countries. One clear purpose. Since 1976, the OPEC Fund for International Development has been turning solidarity into action: financing solutions where they matter most. Clean water. Reliable energy. Healthcare. Education. Jobs. From its base in Vienna, the OPEC Fund works with governments, development banks and the private sector to deliver impact on the ground. Founded in the spirit of South-South solidarity, today it serves more than 125 low- and middle- income countries worldwide. Guided by country developments, partnerships and the UN 2030 Agenda, the OPEC Fund continues to evolve, strengthening its role as a catalyst for sustainable development.
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Built on partnership. Driven by results. As a multilateral development institution, the OPEC Fund is part of a shared global effort to expand opportunity, strengthen resilience and foster sustainable growth. Supported by its twelve member countries — Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela — the institution works with partner countries across Africa, Asia, Latin America and the Caribbean, the Middle East and Europe. Since its establishment in 1976 by the OPEC member states of the time, including the early and instrumental participation of Qatar, it has committed more than US$32 billion in financing, supporting projects with a total value exceeding US$240 billion in over 125 countries worldwide. Within this landscape, the OPEC Fund brings a distinctive contribution, shaped by its origins, mandate and the perspective of its member countries. Unlike many multilateral institutions established through broader international treaties or donor frameworks, the OPEC Fund was created through a deliberate act of solidarity by developing and emerging economies seeking to extend support beyond their own borders. Established on the principle that countries can work together to support development beyond their own borders, it has, for five decades, translated this shared commitment into practical, results-oriented financing. This approach — grounded in partnership, informed by experience and focused on delivery — continues to define its role today. An outward-looking mandate The OPEC Fund was created by its member countries to support development in other countries, directing resources outward, where they are most needed and effective. This model is grounded in an understanding that development challenges are best addressed through cooperation that is respectful of country priorities and focused on implementation.
Partnership, in this context, is not an abstract principle. It is how the institution operates.
The institution’s approach is also shaped by long-standing principles of political neutrality, respect for national sovereignty and support without policy conditionality — reflecting the belief that development is most sustainable when countries retain ownership over their own paths forward.
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Working with countries, not around them Operations are developed in close coordination with partner countries, ensuring that financing aligns with national strategies and sector priorities. This country-led approach allows the OPEC Fund to respond to a wide range of needs, from infrastructure that connects communities, to financial systems that support enterprise, to services that improve and save lives. To support this, the institution operates across public, private and trade sectors, combining a range of financial instruments including loans, equity investments and guarantees. Its well-established grants program complements lending activities by supporting technical assistance, capacity- building and other targeted development interventions. This flexibility enables it to operate effectively across different scales and contexts, supporting both large-scale investments and more targeted interventions, while remaining responsive to changing circumstances. Structured to deliver results Each operation undergoes detailed appraisal, including technical, financial, environmental and social assessments. Clear development objectives are defined from the outset and implementation is monitored against measurable outcomes. This ensures that financing translates into results that are visible and sustained: projects that are completed, systems that function and services that improve over time. The institution’s governance reinforces this discipline. Strategic direction is guided by the Ministerial Council, composed of member country ministers of finance, while the Governing Board, comprising member country representatives, reviews and approves initiatives. Day-to-day operations are led by the President and management team, who are responsible for implementing the institution’s strategy and ensuring that financing is delivered effectively and in line with established policies. Supported by robust frameworks for risk management, compliance and evaluation, this structure combines strategic oversight with professional execution, ensuring both accountability and operational effectiveness. This discipline reflects a core institutional principle: development finance is measured not simply by commitments made, but by outcomes delivered.
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Funding sources Alongside its governance and operational discipline, the OPEC Fund is supported by a strong and evolving financial base. Its resources are anchored in the capital contributions of its member countries, which have been strengthened over time through four successive replenishments. This foundation has enabled the institution to operate on a self-sustaining basis, maintaining financial stability while expanding its activities. In recent years, the OPEC Fund has further diversified its funding sources through regular bond issuances in international capital markets. These transactions, under a sustainable financing framework, have attracted strong global demand, reinforcing investor confidence and enabling the institution to mobilize additional resources for development. The institution’s successful access to capital markets reflects not only financial strength, but growing recognition of its maturity and credibility within the global financial system. Extending reach through cooperation The OPEC Fund’s work is carried out in partnership with a broad network of institutions, including multilateral development banks, bilateral agencies, regional organizations and private sector actors. Some two-thirds of operations are co-financed, allowing the institution to contribute to projects that are larger, more integrated and more impactful than any single institution could support alone. This collaborative approach enables the OPEC Fund to operate well beyond the scale of its own balance sheet, leveraging partnerships to increase reach, share expertise and support more ambitious development efforts.
Across its portfolio, this model has supported projects with a total value exceeding US$240 billion.
Adapting to a changing landscape Over time, the OPEC Fund has expanded its activities in response to evolving development priorities. From an initial focus on public sector lending, it has broadened its operations to include private sector financing and trade finance, recognizing the importance of enterprise, investment and market access in driving sustainable growth. It continues to adapt its tools and expand its partnerships to address emerging challenges, such as climate resilience, food security and digital inclusion. Throughout this evolution, the institution has remained anchored in its founding purpose while adapting its capabilities to meet changing development realities.
Global Partnerships
Algeria
Libya
Venezuela
Ecuador
Nigeria
Gabon
12 Member Countries
125+ Partner Countries
Maps are for illustration purposes only and are not to be taken as accurate representations of borders. For reasons of scale, countries/territories with small areas may not be shown.
Iran
Iraq Kuwait
Saudi Arabia
United Arab Emirates
Indonesia
Total commitments by region of the OPEC Fund’s US$32.6 BN financing, 1976–2025
Region
Asia & the Pacific
20 %
Latin America & the Caribbean
15 %
Middle East, North Africa, Europe and Central Asia
25 %
Sub-Saharan Africa
38 %
Multiregional
2 %
2 %
25 %
15 %
20 %
38 %
Total commitments by sector of the OPEC Fund’s US$32.6 BN financing, 1976–2025 (in US$ billion)
Sector
Agriculture
3.1
9 %
Education
1.3
4 %
Energy
4.3
13 %
Financial Institutions
2.7
8 %
Health
1.1
3 %
Trade Finance
5.5
17 %
Transport & Storage
6.4
20 %
Water & Sanitation
1.6
5 %
Cross-cutting & Multisectoral
6.5
20 %
Total
32.6
Figures are rounded individually; totals are based on unrounded data.
4 %
13 %
9 %
8 %
3 %
17 %
20 %
5 %
20 %
Total commitments by category of the OPEC Fund’s US$32.6 BN financing, 1976–2025 (in US$ billion)
Category
Sovereign
24.3
75 %
Non-Sovereign
7.6
23 %
Grants
0.7
2 %
Total
32.6
23 %
2 %
75 %
OPEC Fund commitments, 1976–2025 (in US$ billion)
US$32.6 BN
Cumulative
2025
1976
Total
30
20
10
0
1976
2025
Statement of contributions to the OPEC Fund by member countries as of December 31, 2025 (in US$ million) *
Country
Paid-in
Pledged
Algeria
105.6
105.6
Ecuador
6.2
7.2
Gabon
3.8
3.8
Indonesia
13.1
13.1
Iran
237.7
529.4
Iraq
154.8
154.8
Kuwait
380.2
380.2
Libya
211.0
211.0
Nigeria
249.8
249.8
Qatar**
94.9
94.9
Saudi Arabia
1,055.7
1,055.7
United Arab Emirates
174.2
174.2
Venezuela
370.6
481.8
Total
3,057.4
3,461.5
* Rounded to the nearest hundred thousand dollar.
Totals are based on unrounded data.
** Qatar was a member of the OPEC Fund until July 1, 2019
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Iraq 154.8
Gabon 3.8
Ecuador 6.2
Iran 237.7
Kuwait 380.2
Qatar** 94.9
Nigeria 249.8
Venezuela 370.6
Saudi Arabia 1,055.7
Indonesia 13.1
United Arab Emirates 174.2
Algeria 105.6
Libya 211.0
Global poverty rate, at US$3 per day, 1981–2024 (2021 purchasing power parity, in %)
0
10
20
30
40
50
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020 2021 2022 2023 2024
2 THE NEY
JOUR
THE JOURNEY: FROM SHARED COMMITMENT TO GLOBAL INSTITUTION In January 1976, meeting in Paris, 13 nations signed an agreement that would channel billions across the developing world. Within months, the first loans were approved. By the end of 1977, the institution had reached 58 countries. What began as a special fund became a permanent institution in 1980 — and has continued to evolve ever since: from sovereign lending to private sector engagement, from project finance to capital markets, from a regional initiative to a global development partner.
48
49
50
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A collective response The OPEC Fund was established at a time of profound economic and geopolitical change. In the 1970s, shifts in global markets created significant imbalances, placing considerable strain on many developing economies. Countries at earlier stages of development faced rising external pressures alongside urgent needs for investment in infrastructure, services and long-term growth. At the same time, oil-exporting countries experienced a sharp increase in revenues, creating both the opportunity and the impetus to extend support beyond their own borders. The member countries of the Organization of the Petroleum Exporting Countries (OPEC), several of which had already established national development initiatives, recognized that a collective approach could do more. By pooling resources and acting together, they could extend support more efficiently and reach more countries facing similar challenges. At the first OPEC Summit in Algiers in March 1975, heads of state and government agreed to establish a joint financing mechanism to support fellow developing countries. This commitment was formalized on January 28, 1976 with the signing of the Agreement Establishing the OPEC Special Fund in Paris.
AGREEMENT ESTABLISHING THE OPEC SPECIAL FUND (1976), ARTICLE TWO:
“The objective of the [OPEC] Fund is to reinforce financial cooperation between OPEC Member Countries and other developing countries by providing financial support to assist the latter countries on appropriate terms in their economic and social development efforts.” The founding reflected more than a financial decision. It formed part of a moment in which developing nations sought a stronger voice in shaping international economic relations and greater agency in supporting one another’s development. From the outset, the new institution was designed to channel resources beyond its membership — a practical expression of solidarity that remains central to its identity today. From early action to permanence Operations began quickly. Backed by an initial endowment of US$800 million (equivalent to approximately US$4.5 billion in 2026), the first signings in December 1976 provided balance-of- payments support to help stabilize economies and sustain essential development efforts. Project-based financing followed just as rapidly, supporting investments across key sectors, including agriculture, energy, transport and industry. By the end of 1977, the institution had already approved 71 loans to 58 countries. This early momentum proved decisive. It demonstrated not only that demand for the institution’s support was substantial, but that its model could deliver meaningful results at speed.
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The next years turned that role into a permanent one. In 1979, a key amendment to the founding agreement allowed loan repayments to be reinvested into future operations. This created a revolving model, strengthening continuity and enabling the institution to extend its reach over time. In 1980, the OPEC Special Fund became a permanent legal entity under its current name: the OPEC Fund for International Development.
This was more than a legal milestone. It marked the beginning of a new phase of institution building.
Vienna became the OPEC Fund’s permanent home, providing a stable base from which to expand its operations and deepen engagement with the wider development community. Already host to OPEC since 1965, as well as key United Nations agencies including UNIDO and IAEA, Austria’s capital offered an established hub of multilateral diplomacy and international cooperation. From its early offices at Palais Strudlhof to its permanent home at Palais Erzherzog Wilhelm, the institution established itself as part of this wider international community. Expanding scope: from infrastructure to human development Through the 1980s and into the 1990s, the OPEC Fund steadily expanded its activities across regions and sectors. Early operations focused heavily on infrastructure, energy, agriculture and other productive sectors essential to economic growth. Over time, however, the scope widened. Education, health, urban services and other social sectors became central to the portfolio. This reflected a broader shift in development thinking: growth alone was not sufficient unless it translated into tangible improvements in people’s daily lives. The institution’s portfolio evolved accordingly, combining infrastructure with investments aimed at improving living conditions and widening opportunity. Addressing structural constraints As the institution expanded, it also responded to wider structural challenges affecting partner countries. For many developing economies, one of the most significant barriers to progress was not only limited financing but unsustainable debt burdens. In response, the international community launched the Heavily Indebted Poor Countries (HIPC) Initiative in 1996. Led by the International Monetary Fund and the World Bank, HIPC aimed to reduce the debt burdens of the poorest countries to sustainable levels, allowing governments to redirect resources toward development priorities such as health, education and infrastructure. The OPEC Fund supported this effort, participating in early debt relief operations from 1997 while continuing to finance new investments to help create the conditions for more durable progress.
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THE OPEC FUND AND HIPC
The OPEC Fund had been advocating debt relief for especially vulnerable countries since the 1970s and signed HIPC loan agreements in 1997 with Bolivia, Burkina Faso, Guyana and Mali as first steps. By 2024, of the 39 countries eligible or potentially eligible for HIPC Initiative assistance, 37 reached their completion point and were receiving full debt relief from the IMF and other creditors covering more than US$100 billion in debt. One of the most recent countries to achieve this milestone was Somalia: In June 2024, a bridge loan by Saudi Arabia cleared the country’s arrears to the OPEC Fund, which allowed the institution to restart its work in the East African state. Aligning with global priorities The adoption of the Millennium Development Goals in 2000 marked a new phase in global development. The MDGs established a shared framework around priorities including poverty reduction, education, health and gender equality. For the OPEC Fund, they reinforced a direction already visible in its evolving portfolio. By this stage, the institution had approved over 800 loans and more than 500 grants, with increasing emphasis on social sectors and human development outcomes. Energy as a development imperative A defining feature of this period was the growing recognition that energy access is fundamental to development. Without reliable energy, progress in education, healthcare, agriculture and economic activity remains constrained. Reflecting calls from member countries to elevate the issue globally, the OPEC Fund launched the Energy for the Poor Initiative in 2008 with an initial commitment of US$1 billion. The initiative was not limited to financing projects. It aimed to raise international awareness of energy poverty, support practical interventions to expand energy access and advocate for recognition of energy as a core pillar of development. Its influence extended beyond the institution itself. Energy access was ultimately recognized as Sustainable Development Goal 7 – Affordable and Clean Energy, when the United Nations adopted the Sustainable Development Goals in 2015.
In this sense, the OPEC Fund was not only responding to global priorities; it was helping shape them.
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Broadening the toolkit As development challenges became more complex, the means of addressing them evolved. In 1999, the OPEC Fund introduced private sector operations, recognizing the role of enterprise, investment and job creation in driving growth. In 2006, this was complemented by trade finance, supporting the movement of goods and deeper integration into regional and global markets. Together, these additions expanded the institution’s ability to support development more holistically, recognizing that sustainable progress depends not only on public infrastructure, but on vibrant markets, enterprise and economic participation. Scaling for a changing world In recent years, climate change, economic shocks and persistent infrastructure gaps have increased pressure on already vulnerable systems. In response, the OPEC Fund has expanded both its ambition and its operational capacity, reflecting the desire of its member countries to extend their contribution to global development while ensuring resources are deployed effectively and with discipline. Annual commitments have grown significantly. Climate considerations have moved closer to the center of operations, integrated across sectors rather than addressed in isolation. The institution has also broadened its financial base, entering international capital markets and issuing benchmark bonds that have met with strong investor demand. Governance and operational frameworks have evolved alongside this growth, reinforcing oversight, accountability and strategic direction while placing greater emphasis on measurable results and development effectiveness. The adoption of the Strategic Framework 2030 reflects this shift. It aligns financing, partnerships and operations around a shared objective: delivering greater impact at scale while maintaining discipline and long-term effectiveness. At the same time, through platforms such as the annual OPEC Fund Development Forum the institution has strengthened its role as a convener and advocate, bringing together governments, financial institutions and development partners to advance collective solutions.
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A trajectory of purpose Across five decades, the OPEC Fund’s evolution has been shaped by changing contexts yet anchored in a consistent purpose. From its origins as a collective response, it has developed into a global development institution capable of operating across sectors, instruments and partnerships. Its trajectory has moved from stabilization to investment, from infrastructure to human development, from public financing to integrated solutions, and from individual projects to broader platforms for impact. What has remained constant throughout is a focus on practical outcomes, ensuring that financing translates into tangible improvements in people’s lives. Setting the stage for impact The true measure of this journey lies in what it has enabled. Across regions and sectors, financing has translated into access, opportunity and resilience, sometimes through large-scale transformation, often through steady, cumulative progress that shapes daily life in meaningful ways. The next chapter explores these outcomes in greater detail, illustrating how sustained partnership and investment come together to deliver development that matters.
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CASE STUDY First steps create immediate impact worldwide (1976) Balance-of-payments support loans kickstart OPEC Fund’s lending operations
When the OPEC Fund started operations in 1976, many countries in the developing world were facing mounting debt and severe financing issues. The new institution moved fast and launched a series of balance-of-payments support loans at a moment of acute pressure. First recipients were the Central African Republic, Guinea, Pakistan, Sri Lanka, Sudan and Samoa with loans ranging from US$1.8 million to US$21.5 million. For governments facing rising import costs and limited fiscal space, this
support helped stabilize economies and maintain essential services, ensuring that development efforts did not stall. The first OPEC Fund Director-General Ibrahim Shihata said: “The OPEC Fund was the first international institution of its kind to combine balance-of-payments support with project lending. By providing this support, we were also able to ask each recipient country to deposit equivalent local counterpart funds to meet the local costs of development projects.”
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Samoa 1.6
Sudan 7.45
Sri Lanka 8.1
Guinea 2.35
Central African Republic 1.75
Pakistan 21.45
Country
Loan No.
Signing Date
Amount (in US$ million)
Sudan
1
Dec. 23, 1976
7.45
Samoa
2
Dec. 23, 1976
1.6
Sri Lanka
3
Dec. 23, 1976
8.1
Guinea
4
Dec. 23, 1976
2.35
Pakistan
5
Dec. 23, 1976
21.45
Central African Republic
6
Dec. 23, 1976
1.75
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CASE STUDY Sowing the seeds of growth (1977) People’s needs have been at the center of the OPEC Fund’s activities from the very start When the OPEC Fund started implementing its first Project Lending Programme in 1977, clear criteria for eligibility were in place: “The OPEC [Special] Fund has a particular concern for projects which meet the basic needs of the population, which alleviate income and regional disparities, and those which lessen the depend ence of recipient countries on imported energy.” On this basis, 22 project loans in 20 countries for a total amount of US$88.9 million in OPEC Fund financing were approved. The first forays in various sectors of the economy included:
Agriculture: Northeast Ghor Canal, Jordan (1977)
OPEC Fund financing: US$1.7 million
Total project cost: US$29.1 million
Agriculture 1.7
The OPEC Fund signed its first financing in agriculture on October 6, 1977 with a US$1.7 million loan to the North east Ghor Canal in Jordan, today known as King Abdullah Canal. Jointly financed with the World Bank, USAID and the Government of Jordan, the project provided irrigation and rural development for 25,000 people in the Jordan Valley. The waterway has led to a doubling of agricultural production.
Energy 3
Transport 3
OPEC Fund financing in US$ millions
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Energy: Sidi Cheho Al Massira Hydropower Project, Morocco (1977)
Transport: San José–Siquirres and Rio Sucio–Puerto Viejo highways, Costa Rica (1977)
OPEC Fund financing: US$3 million
OPEC Fund financing: US$3 million
Total project cost: US$167.1 million
Total project cost: US$74 million
A US$3 million loan to the Sidi Cheho Al Massira Hydro- power Project in Morocco became the OPEC Fund’s first operation in the energy sector. Beyond power generation, the water collected in the dam was also used for irrigation. Today, the Al Massira Dam is Morocco's second-largest reservoir and serves as a habitat for endangered species. It plays a critical role in providing water and controlling floods.
The construction of the San José–Siquirres and Rio Sucio– Puerto Viejo highways revolutionized transport in the country by creating the first all-weather road from the capital San José to the main Caribbean port of Limón. Major economic benefits included reducing road user operating costs, integrating previously isolated regions into the national economy and opening new areas for development.
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CASE STUDY From bean to market (1987) An OPEC Fund loan helps establish the Teppi Green Coffee company in Ethiopia
OPEC Fund financing: US$6 million
Total project cost: US$46.1 million
Coffee production is not only essential for the economy of Ethiopia. Growing coffee is also a long-standing tradition, which dates back many centuries. Ethiopia is where Coffea arabica , the coffee plant, originates. Today, Ethiopia produces about five percent of the global coffee output on over 700,000 hectares of land, employing more than four million smallholder farmers directly, with an additional 11 million people reliant on the coffee economy for their livelihood. The Teppi Green Coffee Estate Share Company was set up in 1980 by the government and later transformed into a joint venture with private investors before it was fully privatized in 2015. But even such a successful enterprise has humble beginnings, and when Teppi planned a first expansion in the mid-1980s, an OPEC Fund loan was crucial.
The loan financed a production increase of high-quality coffee on 5,000 ha of land. Activities included land clearing; construction of processing stations and infrastructure, including roads, water supply and electrical power services; procurement of equipment and machinery; construction of workshops; and technical assistance and training. Tadesse Ademasu, CEO, Teppi Green Coffee, says: “Teppi Green Coffee was founded on the principles of fairness, transparency and a profound respect for the coffee-growing communities that make our journey possible. We are dedicated to fostering sustainable practices that empower farmers and protect the environment, ensuring a brighter future for all stakeholders involved.”
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CASE STUDY Banking on trust (1999) The OPEC Fund and Banque Populaire de Mauritanie forge a groundbreaking relationship
Total OPEC Fund financing to date: US$25.3 million
The OPEC Fund’s first private sector investment was made in 1999 with a US$0.5 million equity stake and loan in Mauritanie Leasing, the country’s first leasing company. Over time, the institution evolved into Banque Populaire de Mauritanie (BPM), a universal bank with a strong focus on financing small businesses. The OPEC Fund continued supporting its growth through multiple credit lines. Today, BPM is a leading player in Mauritania’s financial sector and has helped support the creation of more than 25,000 permanent jobs. This long-term partnership illustrates how strategic investment in financial institutions can strengthen entire economic ecosystems.
Limam Ebnou, Chief Executive Officer, BPM: “The OPEC Fund witnessed and supported our successful transformation over the last 25 years. At BPM we are proud to be partners with the OPEC Fund and highly appreciate its contribution to financing the Mauritanian private sector over the last decades.”
67
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CASE STUDY At the forefront of the fight against HIV/AIDS (2002) The OPEC Fund’s actions against the pandemic reach millions of people in more than 100 countries
Total amount approved (2001–2017): US$81.9 million
The OPEC Fund joined the fight against the HIV/ AIDS pandemic in the early 2000s alongside a broad coalition of strategic partners. In Africa, the hardest hit continent, the OPEC Fund teamed up with the World Health Organization (WHO) to implement projects in 12 Sub-Saharan countries. The OPEC Fund/WHO Initiative Against HIV/ AIDS, launched in October 2002, was gradually expanded across the world and within a few years reached millions of people in 103 countries. Within five years grants worth more than US$65 million were provided. Interventions covered many areas, including awareness, prevention, testing and counselling as well as care, treatment and support. Long- term capacity building was intended to create conditions in which future health shocks could be absorbed faster and more easily.
Zambia became a good example of how the HIV/ AIDS initiative worked. In 2003, average life ex- pectancy at birth was just 32.7 years. The illness was striking down 200 Zambians every day. The OPEC Fund/WHO initiative helped to develop community and home-based care and support for people living with HIV/AIDS and their families. A consequence of the disease was that an esti mated 600,000 children were orphaned and a further 1.6 million lost one parent. The OPEC Fund supported initiatives like Children’s Town, providing a safe haven for destitute youth. Pro- ject Coordinator Moses Zulu said: “The education of children and youth is of the utmost importance for any nation. Only equipped with appropriate knowledge can they contribute productively and significantly to the development of their respec tive communities and society in general.”
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CASE STUDY “The missing Millennium Development Goal” (2008) The OPEC Fund’s Energy for the Poor Initiative addresses a key question of development
Initial pledge of US$1 billion, later converted into revolving facility
When the OPEC Fund launched its Energy for the Poor Initiative in 2008 following an initiative by its member countries, a simple, yet power- ful proposition was at its core: Development is not possible without energy, and sustainable development is not possible without sustainable energy. This was a significant paradigm shift: When the international community agreed on the Millennium Development Goals for the period 2000–2015, energy was not included, becoming — as the OPEC Fund would criticize — “the mis- sing Millennium Development Goal.” Lifting energy to the top of the development agenda affected many dimensions of the OPEC Fund. The initial pledge of US$1 billion, made possible by a replenishment by the member countries, for the financing of projects addres- sing energy poverty was soon exhausted and converted into a revolving facility. One example
among many was the Food-Energy-Water Nexus Project in Sub-Saharan Africa, signed in 2015 and supporting smallholder farmers in Kenya and Tanzania with US$800,000 by combining clean energy solutions with water management. In addition, the OPEC Fund also engaged in policy dialogue, advocacy and capacity building. One direct result, for instance, was the establishment of the organization Sustainable Energy for All, positioned at the intersection of energy, climate and development, and a long-standing partner of the OPEC Fund, for instance in clean cooking. The former OPEC Fund Director-General Suleiman J. Al-Herbish said: “We believe that words must be converted into action. We have said publicly that, while others are ‘finding solutions,’ the OPEC Fund for International Development is engaged in ‘funding solutions.’”
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CASE STUDY Financing for food security The fight against hunger and for sustainable nutrition systems are long-standing strategic priorities
OPEC Fund Food Security Action Plan: US$1 billion (2022–25) and US$2 billion (2026–30) Zimbabwe Smallholder Agriculture Cluster Project OPEC Fund financing: US$15 million
Total project cost: US$67.4 million
Good nutrition is foundational for human develop ment. Nutrition shapes human capital, fuels economic growth and plays an important role in future-proofing societies. In reverse, malnutrition stunts physical development, deepens inequality, undermines stability and fuels conflict. The devastating hunger crises of the 1970s and 1980s played a major role in the establishment and growth of the OPEC Fund. Pursuing Sustain able Development Goal 2 – Zero Hunger and pro- moting resilient food systems have always been strategic priorities. After decades of good pro- gress, recent years have seen a serious regression following climate change, global health crises, economic uncertainty and geopolitical tension. The OPEC Fund responded by redoubling its efforts. In addition to traditional investments in the agriculture sector it launched a Food Security Action Plan in 2022 with an initial volume of US$1 billion for the period until 2025. Because
of continuing high demand the loan was exten- ded by an additional US$2 billion for the period 2026–2030. To date, loans under this facility have financed projects across the OPEC Fund’s countries of operations, combining emergency intervention to secure supplies with long-term projects. In Zimbabwe a US$15 million loan supports the Smallholder Agriculture Cluster Project that helps transform the small-scale farming sector and increases farmers’ participation in market- oriented and climate-smart value chains. Johnny Muchareenyi, a farmer in the Cashel Valley near Chimanimani, said: “The problem that we face as farmers is climate change, particularly the amount of rain we receive. The only type of rain we usually get is cyclones, or torrential rain. Thanks to the project I have learned to grow bio- fortified crops and was able to feed my family.”
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