Development News 2024 Q2

New financing for rural businesses in Bosnia and Herzegovina 

The OPEC Fund and the European Bank for Reconstruction and Development (EBRD) are joining forces to provide €12.5 million each to Raiffeisen Bank Bosnia and Herzegovina for on-lending to micro, small and medium-sized enterprises, especially to women-led companies that are supporting food security. 

More than half of Bosnia and Herzegovina’s population of nearly 4 million live in rural areas. The country has more than 500,000 smallholder farms and about a third of the population is engaged in agriculture, making the sector key for the overall economy and food security. 

Modernizing urban infrastructure in Senegal 

A €38.03 million OPEC Fund sovereign loan will fund infrastructure and urban development in six cities in the northern region of the country. More than 200,000 people, especially women and youth, are expected to benefit. 

Reducing poverty and improving climate resilience in the Seychelles 

OPEC Fund providing US$20 million loan 

A US$20 million OPEC Fund policy-based loan to the Republic of Seychelles will enable a number of different policy reforms that will reduce poverty and improve climate resilience. 

These series of reforms help the country build back better in the wake of the COVID-19 pandemic and promote long-term, inclusive and sustainable growth. The program aims to contribute to a number of Sustainable Development Goals including ones devoted to climate action, marine sustainability and promoting accountable and inclusive institutions. 

Supporting agriculture and green energy trade in Bangladesh 

A US$30 million OPEC Fund loan to City Bank of Bangladesh will support international trade by providing financing to import and export companies, especially in agriculture and green energy. The loan will also facilitate the flow of goods at a time of supply chain disruptions. 

Improving portfolio diversification with IDB 

The Inter-American Development Bank (IDB) and the OPEC Fund executed an Exposure Exchange Agreement (EEA) setting a new benchmark among multilateral development banks (MDBs) and supranational entities. This is the first time that the EEA instrument is used beyond the pool of Triple-A rated MDBs. 

Increasing energy security in the Dominican Republic 

In an effort to increase the sustainability and operating efficiency of the energy sector in the Dominican Republic, the OPEC Fund is providing two loans totaling US$120 million for a program to improve the country’s electricity distribution system. 

The program’s objectives include, among others, the construction of new substations and low- and medium-voltage networks as well as the rehabilitation of existing electricity distributions networks. About 1.3 million residents are expected to benefit from the program, which will result in fewer outages and increased hours of available electricity. 

Promoting Türkiye’s agriculture and food sector 

Cooperation with Development and Investment Bank of Türkiye 

A US$50 million OPEC Fund loan to Türkiye will support the agricultural and food production sectors, prioritizing 11 cities hit by the devastating earthquakes of February 2023. 

The Development and Investment Bank of Türkiye (TKYB) will on-lend the funds to small and medium-sized enterprises to support efforts to overcome the calamity’s impact and to promote a more resilient and sustainable agriculture sector. The project will provide funds to businesses to recover and increase resilience in the food sector to withstand future shocks, including natural disasters and climate change. It will strengthen long-term food value chains by improving practices, production, productivity, supply chain infrastructure and market access. 

Improving port access in Tanzania 

The OPEC Fund is extending a US$42.3 million loan to Tanzania to upgrade a 59 kilometer section of earth road to a fully-paved, two-lane connection linking the Karema Port to the national paved road network. 

The project will reduce the time and cost of travel and improve mobility and accessibility, which increases regional integration through trade with neighboring Democratic Republic of Congo and Burundi.