OPEC Fund Quarterly - 2023 Q4

playing a catalytic role in channeling funds from member countries into climate action.

Mozambique ARTISANAL FISHERIES PROMOTION PROJECT AND THE OPEC FUND Approved: June 2014 Total project cost: US$43.5 million OPEC Fund financing: US$13.5 million

Increasing multi-polarity and shifting geopolitics The war in Ukraine sharpened the divide between East and West, placing many developing countries at an inflection point. Meanwhile, the growing US- China rivalry, including trade disputes, are putting additional pressure on many OPEC Fund partner countries. Many states are becoming more vocal, exerting their influence in geopolitics. Amid this shifting landscape, the OPEC Fund maintains its position as a reliable partner and provider of development solutions. The South is rising In recent years, there has been a notable shift in economic influence and the South has emerged as a significant contributor to global growth.

Middle- and low-income countries combined grew by 7.2 percent in 2021, outpacing advanced economies in a trend that is expected to continue. This transition presents new opportunities for South-South cooperation. It also represents new opportunities for the OPEC Fund to expand support for partner countries’ growth.

The SDG financing gap in low- and middle- income countries could reach US$4.3 trillion per year by 2025

T he project's objectives are to improve incomes and livelihoods of poor households involved in traditional fisheries and to increase the returns from fish sales for artisanal fishers and small-scale operators on a sustainable basis. An estimated 334,000 people depend directly or indirectly on fishing in Mozambique. The project provided training on fishing and fish handling techniques, allow fishers to access more resource-rich open sea areas and supporting activities to improve transport and sales. The project also increased financial services available to fishing communities and trained households on cooking and eating habits. The project is estimated to benefit around 56,000 people with training, improved equipment and financial services. The 2020 completion report estimates that the project has contributed to a 12 percent increase in the share of high-value fish catch as well as to an almost 90 percent increase in total artisanal fishing production overall in targeted areas.

Technological advancement and digital transformation Through its lending operations the OPEC Fund is helping to bridge the digital divide. Digital technologies can help accelerate delivery of the SDGs. Yet a global digital divide persists. Partner country populations are among the most digitally excluded: only 36 percent of low- and middle-income countries’ populations use the Internet, compared to the global average of 66 percent. The OPEC Fund, along with other multilateral development banks (MDBs), has a key role to play, ranging from financing the infrastructure “backbone” to the deployment of new technologies in core assets. Understanding partner country needs and opportunities for leveraging

technology will be essential for maximizing the impact of OPEC Fund operations. MDB reform agenda There have been mounting calls for MDB reform in recent years. There is now clear agreement from the G20 that MDBs are overly constrained and need to do more, be it through enhanced governance, improved effectiveness, greater coordination and higher risk- taking. There are now expectations that MDBs’ lending levels could triple and provide an additional US$260 billion in annual financing by 2030. MDBs are also being asked to support the mobilization of an additional US$500 billion in private

20

Powered by