A RECORD YEAR
OPEC Fund closed 2023 on a high and continues to set itself ambitious targets
T he OPEC Fund for International Development marked its 48th anniversary in late January with the publication of record results for 2023. The development finance institution expanded its new commitments to US$1.7 billion across 55 projects globally last year. The projects covered the full range of OPEC Fund focus areas, providing funding to address climate change and energy transition, support social and economic
The OPEC Fund 2023 operations: regional spread
of all lending in the energy sector in 2023. Dedicated loans promoted sustainable agriculture in Benin, Liberia and Zimbabwe. The largest share in last year’s lending program was dedicated to policy-based- lending. In cooperation with financing partners, the OPEC Fund supported sustainable development government programs in Botswana, Côte d’Ivoire, Armenia, North Macedonia, Colombia and Paraguay to bolster economic, social and climate resilience. In the financial sector, the OPEC Fund partnered with governments and local banks to provide on-lending to small and medium-sized enterprises, promoting job creation and access to finance in Albania, Botswana, Paraguay and Viet Nam. More than US$250 million in trade finance supported the movement of critical commodities and goods in emerging economies. In the transport sector, the OPEC Fund helped to build roads and sustainable transport infrastructure for improved connectivity in India, the Kyrgyz Republic, Tajikistan, Uzbekistan and Bosnia and Herzegovina. In terms of geographical distribution, the OPEC Fund delivered strong results across Africa (42 percent of investments); the Middle East, North Africa, Europe & Central Asia (20 percent); Latin America & the Caribbean (20 percent), as well as Asia & the Pacific (18 percent) through public and private sector
20%
Africa
Asia & the Pacific
42%
Latin America & the Caribbean MENA & Europe and Central Asia
20%
18%
resilience and boost sustainable growth.
lending, trade finance and grants operations. A review of the OPEC Fund’s impact found that in the period from July 2022 to June 2023 all 43 projects approved during that time contributed to at least one Sustainable Development Goal (SDG), with a majority (60 percent) contributing to two or more. Measuring its impact, the OPEC Fund found that projects in the health sector benefited an estimated 15.7 million people, while more than 1 GW of renewable energy was added for clean energy generation, and more than 300,000 farmers, 120,000 students and 4,600 micro, small and medium- sized enterprises benefited from OPEC Fund-supported projects. Leveraging its own commitments, the OPEC Fund continued its efforts to catalyze joint and coordinated action from its partners. In 2023, the OPEC Fund joined forces with fellow members of the
Arab Coordination Group (ACG) to pledge a total of US$50 billion in support of African countries by 2030. The development finance institution also jointly announced with the ACG a US$10 billion strategic initiative for an inclusive, affordable and equitable energy transition in developing countries to be deployed by 2030. OPEC Fund President Abdulhamid Alkhalifa said: “In 2023, we grew our lending program across the board in response to strong demand from our partner countries and thanks to our success in raising additional funds from the capital markets. We were also able to leverage our partnerships to mobilize development support by working with multilateral development banks and development finance institutions. And we are well on track with our 2030 target to commit 40 percent of all new financing to climate action.”
Last year marked another milestone in the history of the OPEC Fund with its successful debut in the capital market. In January 2023, the institution issued a three–year fixed-rate sustainability bond which raised US$1 billion. The sound financial position was affirmed in December 2023, when the OPEC Fund was assigned a credit rating upgrade to “AA+” by S&P Global Ratings. In line with its Strategic Framework 2030, the OPEC Fund is using the additional development funding to expand its operations and deepen its impact in response also to strong demand from partner countries and numerous global challenges. The institution has adopted two action plans to address the cross-cutting themes of climate change and food insecurity and is reporting good progress with delivery. For example, support in renewable energy projects constituted nearly 60 percent
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