THE HISTORY OF THE OPEC FUND
Private Sector Operations – Highlights Since the launch of Private Sector Operations in 1999, the financing window has become an essential part of the OPEC Fund’s offering. Today they account for 30 percent of total commitments with more than US$10 billion and cover a wide range of key sectors, from financial institutions to renewable energy. Microfinance Enhancement Facility (MEF) The OPEC Fund invested US$40 million in the Microfinance Enhancement Facility (MEF) to provide support to small and medium-sized enterprises in the aftermath of the 2008 global financial crisis. Between 2009 and 2022, MEF invested US$2.9 billion across 312 microfinance institutions in 64 countries, reaching 740,000 end borrowers – of which 78 percent were women and 69 percent were living in rural areas.
Said Aissi, Assistant Director-General Operations (Public and Private Sector) and Adviser to the Director- General, 1981-2016, OPEC Fund
Banco Promerica El Salvador The OPEC Fund has supported Banco Promerica’s activities, particularly focusing on on-lending to small and medium-sized enterprises and addressing the demand for short, medium and long-term financing. The OPEC Fund has provided three loans totaling US$48 million, supporting job creation and bolstering economic growth.
A driving force for the establishment of the new private sector window was Said Aissi. Said Aissi was Assistant Director-General Operations (Public and Private Sector) and later served as Adviser to the Director-General. On the occasion of the 40th anniversary he said: “The OPEC Fund is the proud achievement of the OPEC countries that decided to set up an institution to carry a message of solidarity to the developing world. No one could say then that it would grow to be what it is today. The challenge is always to do the best with the means available. OFID has gained a great deal of goodwill and enjoys a lot of trust. It is fit for the job. Personally, an early moment of satisfaction came when visiting one of our water projects in Africa. An elderly lady told me that with water now available in her village, she didn’t have to walk 15 km every day; she could plan a second life! For all of us, our true achievement is to look back and say ‘I am glad that people who succeeded me found it easier to do the job than I did.’” One of the first private sector transactions of the OPEC Fund was an investment in Mauritania Leasing in 1999. “We put in US$500,000 as an equity investment for a 10-percent stake and added a US$2.5 million loan to go with it,” recalls Malcolm Bricknell, one of the architects of the Private Sector Operations. “It was an example of how important the OPEC Fund could be, because Mauritania Leasing was the first private sector leasing company in the country and became incredibly
ETC Group Facility ETC Group has developed into one of the largest independent agricultural commodity supply chain managers in Africa. It owns more than 300 warehouses and operates over 70 processing plants. OPEC Fund loans for a current total of US$65 million have supported the expansion of its infrastructure and processing capacity, benefiting more than 350,000 smallholder farmers.
(BPM) and evolved into a universal bank
focusing predominantly on small and medium- sized enterprise (SME) financing. To date, the OPEC Fund has approved four lines of credit to BPM for on-lending to SMEs, supporting the development of new businesses and helping
Malcolm Bricknell, one of the architects of the OPEC Fund’s Private Sector Operations and Limam Ebnou, CEO, Banque Populaire de Mauritanie
successful. Both sides would benefit from this cooperation: We built up our expertise and working practices as we progressed,” Mr. Bricknell remembers. In later years, Mauritania Leasing became Banque Populaire de Mauritanie
to create over 25,000 permanent jobs. “We are proud to be partners with the OPEC Fund and highly appreciate its contribution to financing the Mauritanian private sector,” says Limam Ebnou, the bank’s CEO.
37
Powered by FlippingBook