OPEC Fund strengthens agricultural development in Benin with US$26 million loan

October 23, 2024: The OPEC Fund for International Development (the OPEC Fund) is providing a US$26 million loan to Benin to support the Horticulture Development Support Project (PADMAR-E) aimed at enhancing food security and increasing the income of small-scale horticulture farmers. The project is co-financed with the International Fund for Agricultural Development (IFAD), which is providing US$15 million financing.

Signing the loan agreement during the 2024 World Bank-IMF Annual Meetings in Washington D.C., OPEC Fund President Abdulhamid Alkhalifa said: 

“Investing in the horticulture sector is crucial for Benin where agriculture is a cornerstone of the economy. By enhancing productivity and market access for small-scale farmers, the project will directly address food security challenges and empower communities. Sustainable agricultural practices will lead to economic resilience and improved livelihoods for the people of Benin.”

PADMAR-E is expected to directly benefit approximately 16,000 households with almost 100,000 people, of whom 40 percent are women and 50 percent young people. The focus will be on improving market access for farmers, enhancing productivity and supporting project implementation.

The new project aims to build on the achievements of an earlier PADMAR project, which the OPEC Fund supported with a US$12 million loan in 2016. It covered 27 municipalities in the south of the country, yielding excellent results such as a 150 percent increase in the production of local seed varieties.

To date, the partnership between the OPEC Fund and Benin includes more than 30 development loans and more than US$220 million in financing across various sectors, including agriculture, power, transport, and health. Benin is a West African country with a national poverty rate of more than 36 percent. The economy is largely dependent on the export of unprocessed agricultural produce.

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 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 about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.