Development News 2026 Q2

First loan to South Africa will enhance infrastructure services 

The OPEC Fund has signed its first loan agreement with South Africa, which will support reforms to infrastructure services in the energy and transport sectors and advance the country’s low-carbon and just transition agenda. The US$150 million financing will bolster the government’s efforts to address key infrastructure bottlenecks, strengthen long-term energy security and improve freight transport systems that are critical for domestic and international trade. 

Developing eight harbors in the Maldives 

Harbor infrastructure in the Maldives is a pillar of economic and social resilience. A US$40 million OPEC Fund loan will finance the development of eight harbors on eight islands, significantly improving local mobility by linking isolated communities to essential regional services. They will also act as catalysts for decentralized economic growth by fueling tourism. The project directs tourism revenue into the hands of local families, creating hospitality jobs and stimulating small business ecosystems. 

Promoting economic growth in Jordan 

A US$75 million policy-based OPEC Fund loan will help Jordan introduce reforms aimed at fostering private sector-led growth and increasing access to finance. The loan represents the second tranche, bringing the total financing to US$150 million. 

The program is designed to tackle core constraints holding back the country’s economic development. Reforms under the first pillar aim to reduce business operation costs, promote competition and facilitate trade. The second pillar focuses on enhancing the regulatory framework for non-bank financial institutions, strengthening credit infrastructure and fostering the growth of green finance. 

Stimulating the cotton industry in Burkina Faso 

The OPEC Fund is joining a trade finance facility to aid the Government of Burkina Faso in financing the purchase of seed cotton from domestic producers for processing and exporting. The €15 million contribution from the OPEC Fund will help Burkina Faso maintain its position as one of Africa’s leading cotton producers. The crop plays a strategic economic role, contributing significantly to export earnings and supporting the livelihoods of millions of smallholder farmers across the country. 

Financing Viet Nam’s green transition and SME growth 

The OPEC Fund signed a US$25 million loan with Viet Nam’s Environmental Protection Fund (EVF) to expand access to finance for micro, small and medium-sized enterprises and boost climate-related investments in the country. The financing will enable EVF to expand lending to climate-aligned sectors, advancing low-carbon and environmentally sustainable practices. This supports Viet Nam’s national climate commitments and responds to growing demand for sustainable financing. 

Bolstering social services in Barbados 

Two OPEC Fund loans, totaling US$50 million, will strengthen social services in Barbados by enhancing the efficiency and sustainability of key social programs, expanding support for vulnerable groups and advancing digitalization and disaster-preparedness reforms. The program is expected to reinforce long-term social protection and pension sustainability. 

The program is expected to benefit more than 100,000 residents contributing to the national insurance and social security service, 50,000 pensioners and more than 1,000 families living in extreme poverty. Introducing digital transformation, the project will make the public administration more efficient and cost effective. 

Pilot SIDS project to elevate regional climate change collaboration 

The OPEC Fund signed a US$350,000 technical assistance grant with the Pacific Islands Forum Secretariat to fund a pilot program that aims to support project pipeline development and climate finance mobilization as well as foster regional climate change collaboration. 

The grant is aligned with the OPEC Fund Island Resilience Facility that delivers tailored solutions and strategic funding to enhance climate resilience in small island developing states. The platform strengthens impactful and bankable climate adaptation projects. 

Disaster risk management in Saint Vincent and the Grenadines 

Saint Vincent and the Grenadines is highly vulnerable to the impacts of climate change, primarily sea level rise and hurricanes. The country also faces significant risks from landslides, coastal flooding and earthquakes. Climate mitigation and adaptation are of particular importance. 

A US$40 million OPEC Fund loan will boost the government’s capacity to manage disaster and climate risks by building physical and community resilience. This will be accomplished through policy actions to strengthen regulatory, risk and fiscal management as well as adaptation frameworks. 

The scope of the project includes ensuring that new developments are environmentally sustainable and a comprehensive framework for disaster preparedness. 

Nurturing the business climate in Benin 

Two new loans to Benin will help stimulate growth in the West African country and boost the business environment. First, a €30 million loan to the government will assist the Support Program for Economic Governance and Private Sector Development to strengthen economic governance, stimulate private sector growth and foster a more investment-friendly climate. 

Second, a €27 million loan to Banque Internationale pour l’Industrie et le Commerce (BIIC), a local bank, will promote greater financial inclusion with allocations to underserved segments. A portion will be directed to micro, small and women-led businesses. The loan is the OPEC Fund’s first operation with BIIC and the first in Benin’s financial sector.