OPEC Fund signs first loan agreement with South Africa to support infrastructure reform and low-carbon transition

June 3, 2026: The OPEC Fund for International Development (the OPEC Fund) has signed its first loan agreement with the Republic of South Africa, providing a US$150 million policy-based loan to support reforms to improve infrastructure services in the energy and transport sectors and advance the country’s low-carbon and just transition agenda.

The 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.

OPEC Fund President Abdulhamid Alkhalifa said: “This first loan agreement with South Africa marks an important milestone. Reliable energy and efficient transport are essential for growth, competitiveness and job creation. With this financing, the OPEC Fund is supporting reforms that strengthen infrastructure services, expand opportunities for private investment and contribute to a more resilient, low-carbon economy. We look forward to developing a successful partnership with South Africa.”

The OPEC Fund loan is part of a broader international support package co-financed by the World Bank, the African Development Bank, KfW of Germany and the Japan International Cooperation Agency.

The program is structured around three mutually reinforcing reform areas: strengthening the restructuring of the power sector; developing a more efficient freight transport sector; and supporting a low-carbon and just transition. It is also expected to promote greater private sector participation in these sectors.

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 more than US$32 billion to development projects in over 125 countries with an estimated total project cost of more than US$240 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.