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OPEC Fund and TDB advance cooperation to promote infrastructure development and economic recovery in Africa
The OPEC Fund for International Development and the Eastern and Southern African Trade & Development Bank (TDB) are deepening their cooperation with OPEC’s Fund latest commitment of debt and equity totaling US$ 40 million. These recent investments in TDB aim to further strengthen the partnership and unlock synergies in support of sustainable development in Africa.
A US$10 million equity investment, the second since the OPEC Fund and TDB began their partnership in 2009, will support the bank’s capitalization and increase its financing capacity in TDB’s 22 member countries.
The OPEC Fund and TDB today also signed a US$30 million loan to support infrastructure projects in eastern and southern Africa as they recover from the COVID-19 pandemic and its economic impact.
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said at the signing in Vienna today:
“Strong regional development banks such as TDB are an important source of funding on the continent in sectors like trade and infrastructure. Our most recent investments are a testimony to our flourishing partnership with TDB and emphasizes our strong joint commitment to boost sustainable economic development in Africa.”
TDB Group President Emeritus and Managing Director Admassu Tadesse said:
“We are delighted to be deepening our strategic partnership with OPEC Fund with this new investment and other facilities. It demonstrates continued confidence in TDB Group, both its mandate and performance, amidst global challenges. With this investment we look forward to growing our infrastructure and trade financing in Africa.”
The OPEC Fund and TDB have been partners since 2009, with joint projects for US$200 million through loans, equity and risk participation. The cooperation focuses on the provision of financing to the agriculture, trade, industry, infrastructure, energy and tourism sectors as well as the promotion of economic and social development. Africa is the top recipient of OPEC Fund financing and in 2021 accounted for 51 percent of the fund’s new commitments.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$22 billion to development projects in over 125 countries with an estimated total project cost of US$187 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA, Positive Outlook by S&P in 2021. Our vision is a world where sustainable development is a reality for all.
Established in 1985, the Eastern and Southern African Trade & Development Bank (TDB) is a multilateral, treaty-based, investment-grade development finance institution, with 41 sovereign and institutional shareholders and assets of US$8 billion. TDB serves 22 economies in its region, with the mandate to finance and foster trade, regional economic integration, and sustainable development through trade finance, project and infrastructure finance and asset management.
TDB is part of TDB Group, which also comprises the Trade and Development Fund (TDF), the Eastern and Southern African Trade Fund (ESATF), TDB Captive Insurance (TCI), and TDB Academy