OPEC Fund Allocates Over US$600M to Strengthen Infrastructure, SMEs, and More

The new investments reflect the OPEC Fund’s broader strategy of delivering tangible, practical solutions in line with the strategic priorities of its partner countries.

The OPEC Fund for International Development (OPEC Fund) has recently approved over US$600 million in new development financing, which is set to support a diverse range of projects aimed at bolstering sustainable infrastructure, driving private sector development, enhancing food security, and improving human capital. This funding, confirmed during the 191st Governing Board meeting in Vienna and the first quarter of 2025, marks a significant step forward in the Fund’s ongoing mission to promote inclusive growth across various developing regions, including Africa, Asia, Latin America, and the Caribbean.

The new investments reflect the OPEC Fund’s broader strategy of delivering tangible, practical solutions in line with the strategic priorities of its partner countries. Abdulhamid Alkhalifa, President of the OPEC Fund, expressed the institution's deep commitment to resilience building and inclusive development. "These projects demonstrate our unwavering dedication to fostering growth that is both sustainable and inclusive. Whether enhancing transport infrastructure, improving access to financial services, or developing human capital, the OPEC Fund is focused on providing long-term, impactful solutions," Alkhalifa noted.

The new funding focuses on critical areas including transportation, energy, education, agriculture, and financial inclusion, supporting countries’ efforts to advance their development agendas while ensuring resilience and sustainability in the face of numerous challenges, including climate change, economic disparity, and access to services.

Key Public Sector Projects Receiving OPEC Fund Financing

Costa Rica: Expansion of the San Jose-San Ramon Road Corridor

In Costa Rica, a €180 million loan will support the "Expansion and Improvement of the San Jose – San Ramon Road Corridor Project," co-financed with the Central American Bank for Economic Integration (CABEI). The project will focus on improving traffic flow, road safety, and connectivity along Route 1 of the Inter-American Highway, facilitating trade, boosting economic integration, and enhancing regional connectivity.

Nepal: Strengthening Electricity Transmission and Distribution

In Nepal, a US$100 million loan will contribute to the "South-Asia Subregional Economic Cooperation (SASEC) Electricity Transmission and Distribution Strengthening Project," in collaboration with the Asian Development Bank (ADB). This project aims to increase the efficiency and reliability of Nepal’s electricity infrastructure, helping to meet growing energy demands, reduce energy losses, and foster greater cross-border power trade in the South Asian region.

Rwanda: Development of Aviation Skills

A US$27.95 million loan has been approved for Rwanda to co-finance the "Center of Excellence in Aviation Skills Project" with the African Development Bank (AfDB). This project aims to strengthen the country’s capacity to provide world-class aviation training, supporting Rwanda’s aspirations to become a regional aviation hub. It also contributes to human capital development by equipping the workforce with the necessary skills for the growing aviation industry.

Senegal: Water Valorization and Agricultural Development

Senegal will receive a €25 million loan to co-finance the "Water Valorization for Value Chains Development Project- Phase 2 (PROVALE – CV2)" with AfDB and other partners. The initiative aims to support sustainable agricultural production by improving water resource management, enhancing climate resilience in farming, and boosting the local economy. The project will directly benefit 57,000 households by creating jobs, increasing agricultural output, and raising incomes.

Tanzania: Regional Railway Infrastructure

In Tanzania, a US$75 million loan, as the first tranche of a US$150 million financing facility, will help fund the "Regional Standard Gauge Railway Project (Uvinza–Malagarasi Section)." This project, co-financed with AfDB and other partners, is designed to improve regional connectivity and facilitate smoother trade between Tanzania, Burundi, and the Democratic Republic of the Congo (DRC). It is a key initiative in advancing East Africa’s infrastructure integration.

Private Sector Investments for Economic Empowerment

In addition to public sector projects, the OPEC Fund is focusing on empowering the private sector, particularly small and medium-sized enterprises (SMEs), to drive economic growth and job creation.

Côte d'Ivoire: Access to Finance for SMEs

A €30 million loan will be provided to Côte d'Ivoire to enhance access to finance for small and medium-sized enterprises (SMEs). SMEs are key drivers of employment and economic growth in many developing nations, and this project will help strengthen local entrepreneurship, stimulate job creation, and promote economic diversification across the country.

Democratic Republic of the Congo: Supporting Critical Sectors

In the Democratic Republic of the Congo, the OPEC Fund has approved a US$20 million loan to help finance critical sectors of the Congolese economy, including agriculture, infrastructure, and energy. This investment is part of a broader financing package designed to support the country’s economic growth and development by improving access to credit for key industries.

Nicaragua: Financial Inclusion for Agricultural Enterprises

A US$20 million loan will be provided to facilitate financial inclusion for businesses in Nicaragua's agricultural sector. This loan will help improve access to credit for small farmers and agribusinesses, supporting the growth of the sector by enabling better access to resources, capital, and markets.

Regional (Africa): Trade Finance for Agricultural Commodities

The OPEC Fund has also committed US$40 million as part of a US$240 million trade finance facility aimed at supporting the import and export of agricultural commodities across multiple African countries. This project will promote regional trade, enhance food security, and improve access to essential agricultural inputs and outputs.

Focus on Sustainability and Long-Term Impact

These new financing packages align with the OPEC Fund’s broader mission to foster sustainable development across its partner countries. The Fund’s strategic investments aim to address pressing development challenges such as climate change, energy security, food security, and poverty alleviation while ensuring that economic growth is inclusive and benefits the most vulnerable populations.

The Fund’s approach also emphasizes the importance of public-private partnerships and collaboration with international financial institutions to maximize the impact of each project. With a focus on building long-term resilience, the OPEC Fund remains committed to driving economic progress and social well-being in the regions it serves.

As these projects move forward, they are expected to deliver meaningful results in terms of infrastructure improvements, job creation, poverty reduction, and the enhancement of key sectors such as energy, agriculture, and education. By addressing immediate development needs and laying the foundation for future growth, the OPEC Fund continues to play a critical role in advancing the global development agenda.