DEVELOPMENT NEWS
Joint trade finance facility for food security in Uzbekistan
OPEC Fund and the Islamic Trade Finance Corporation jointly providing US$100 million
A ddressing a major concern for Uzbekistan, the OPEC Fund for International Development and the Islamic Trade Finance Corporation are pooling together US$100 million for a syndicated trade finance facility to improve food security in the Central Asian country. Uzbekistan is a net importer of essential goods such as grain, vegetables and sugar, and nearly 40 percent of the country’s food supply originates in the Black Sea region. Following the global disruptions caused by the war in Ukraine, including higher food and commodity prices, food security has become a major concern for Uzbekistan.
The financing will help ensure the sustainable supply of essential food and agricultural products in the local market at affordable prices. In June 2022, the OPEC Fund announced a US$1 billion Food Security Action Plan supporting financing for the import costs of basic commodities such as
disruptions and price hikes following the war in Ukraine. To date, the OPEC Fund has provided close to US$600 million in financing aligned with Uzbekistan’s sustainable growth agenda and the OPEC Fund’s country partnership strategy. The OPEC Fund’s public and private sector financing, supported by grants, have helped the sustainable development of the energy, water & sanitation, agriculture, transport, education and
seeds, grains and fertilizers, while promoting the medium and long-term security of
food supply in partner countries. The facility is channelling public and private sector loans, as well as grants, to developing countries hit hardest by
Value of the OPEC Fund Food Security Action Plan: US$1bn
finance sectors, and includes support for small and medium- sized enterprises.
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