Shaping the next generation of rural development financing

Development finance must continually evolve to address complex global challenges while upholding the principles of sound banking. New thinking and innovative approaches are essential to mobilize resources and deliver measurable impact. 

These themes framed a Leaders’ Dialogue Fireside Chat hosted by the International Fund for Agricultural Development (IFAD) in February in Rome. Representing the OPEC Fund, Vice President, Strategy Musab Alomar spoke at a panel about “New frontiers for IFIs financing rural development at the first mile.” 

He advocated a three-step approach, starting with building investable pipelines aligned with government priorities and supported by coordinated financing packages: “Countries lead, partners align,” he said. 

Vice President Alomar highlighted the OPEC Fund’s toolkit – sovereign lending, policy-based financing, results-oriented approaches, private sector operations and trade finance – and emphasized its “South-South DNA” and the ability “to scale beyond our balance sheet” through co-financing and joint action with partners such as the Arab Coordination Group. 

The OPEC Fund played a key role in the establishment of IFAD in 1978 and has since contributed more than US$1 billion to more than 120 IFAD-supported agriculture and rural development projects worldwide.