Harnessing the wind

Africa is a continent of huge potential, abundant resources and rich promise. But also a continent of poverty, struggle and broken dreams. And yet a continent that can kindle hope and inspiration as expressed in movies like “The Boy Who Harnessed the Wind”. Against all odds – and his father – the young schoolboy William prevails in securing his village’s economic survival. It is not only a moving story of what determination and tenacity can achieve. It is also an inspiration for everyone who works on the continent’s development. 

For the OPEC Fund, engagement in Africa is at the heart of our mandate and mission. Securing basic needs, ending hunger, securing access to affordable energy, providing clean water – the most fundamental development goals guided our activities. Today, about half of the OPEC Fund’s portfolio is in Africa with total approved commitments amounting to US$13.1 billion. 

This financial support is key, but it is the result not only of constructive negotiations and crystal clear business calculations. Development work is based on commitment and the establishment of personal relations. To blossom and flourish they need care and attention, just like projects need permanent monitoring and surveillance. Missions to project sites provide an ideal opportunity to combine these two aspects of the duties of an operations leader as the following reports from the ground illustrate. 

Rwanda: Bringing water to the land of 1,000 hills 

As Kigali expands ever-further eastwards, the Rwandan government is increasingly focused on providing safe and reliable water to the residents and businesses of its capital city. With the population expected to grow from 1.1 million people in 2012 to 3.8 million by 2050, and with demand already outpacing supply, water is now a clear priority under the national “master plan”. 

Key to this plan is the Karenge Water Treatment Plant, which is presently being upgraded thanks to a US$52 million loan from Exim Bank of Hungary under phase one of the project signed in November 2021. Capacity is set to increase fourfold during this phase, rising from 12,000 to 48,000 m3 of water per day; the ultimate aim is to provide 120,000 m3/day. 

Phase two involves the expansion of water transmission and distribution systems, funded by a consortium of partners including the Arab Bank for Economic Development in Africa (BADEA), the Abu Dhabi Fund and the Saudi Fund for Development. The OPEC Fund is contributing a loan of just over US$21 million, destined for distribution reservoirs and pipelines, engineering studies and the supervision of works. 

OPEC Fund Country Manager Sonia Siserova and Senior Environmental Specialist Gerardo Parco joined an appraisal mission in late July, touring project sites around the Karenge water treatment plant and its main source, Lake Mugesera, 40 km southeast of the capital. Also present were several co-financiers and representatives from Rwanda’s ministries of finance and infrastructure. 

Under its ambitious plans, the government aims to ensure universal access to basic water supply and sanitation services by 2024 — six years ahead of the UN SDG 6 targets. Ultimately, more than 800,000 people are set to benefit from the project by 2035, with clear gains expected in agricultural productivity, sustainable resource management, health services and gender-focused employment. 

“Rwanda is very progressive when it comes to gender,” said Sonia Siserova. “So, the job creation resulting from this project will involve a minimum 30 percent of females — guaranteed by law.” 

Uganda: Winning hearts and minds 

Hatem El Bakkali, OPEC Fund Senior Country Manager, visited Uganda to appraise a new line of credit for small and medium-sized enterprises (SMEs) via a long-standing partner, the Uganda Development Bank (UDB). UDB lends on preferential terms to SME borrowers in strategic sectors including agriculture, agribusiness, manufacturing, hospitality, health, education and infrastructure. 

The kick-off meeting at the Ministry of Finance, Planning and Economic Development with Maris Manyera, Director for Debt and Cash Policy, provided an opportunity to review overall collaboration and individual project progress. It also offered a chance to discuss funding priorities under Uganda’s National Development Plan. 

Mr. El Bakkali subsequently met the executing agencies of portfolio projects and discussed bottlenecks to smooth implementation. On the agenda were the National Oil Seeds Development project, the Vocational Education project, the Uganda Heart Institute (UHI) project, and two ongoing road operations with the Uganda National Road Authority. 

Further discussions were held with the teams of Patricia Ojangole, UDB Managing Director; Ben Kumumanya, Permanent Secretary of the Ministry of Local Government; Ketty Lamaro, Permanent Secretary of the Ministry of Education and Sports; Samuel Muhoozi, Director for Roads and Bridges Development – UNRA; and Peter Salomon Lwabi from UHI. 

To date, the OPEC Fund has approved more than US$250 million in public sector loans in Uganda covering a wide range of projects from infrastructure to health and from to agriculture to education. The OPEC Fund has also provided trade financing and supported Uganda with numerous grants. 

Zimbabwe: “We should be really proud” 

When OPEC Fund Country Manager Bah Aly Bah visited an irrigation project in rural Zimbabwe last week the joy was mutual. Program beneficiaries welcomed him with singing and dancing. Mr. Aly Bah was impressed by the implementation of the scheme, which serves as just one example of our organization’s successful engagement in the country: “We should be really proud,” he said. 

The projects’ strong impact in this southern African country was also acknowledged in official meetings. Anxious Masuka, Minister of Lands, Agriculture, Fisheries, Water and Rural Development, expressed the authorities’ gratitude for the OPEC Fund’s support of the government’s transformation agenda. The Mushandike Irrigation Scheme, for instance, supports five villages in the Masvingo province with a total of 242 households. A US$15 million OPEC Fund loan, approved in December 2017, is financing the construction and rehabilitation of night storage dams, as well as the rehabilitation of infield canals and hydraulic structures. 

Unleashing Zimbabwe’s great agricultural potential is key to the country’s economic development and increasing living standards. The OPEC Fund launched a US$7.6 million Poverty Alleviation Project in June 2016, which created 1,700 new jobs, raised incomes among the supported population and overall benefitted more than 15,000 people. “The program, which was concluded at the end of last year, was very successful, because it was carefully targeted and meticulously implemented,” noted Mr. Aly Bah. 

The OPEC Fund financed its first project in Zimbabwe in 1981 and to date has approved seven loans for a total of US$79.5 million. The organization is held in high regard for its long-standing commitment as Mr. Aly Bah learned in meetings with Moses Mhike, Permanent Secretary at the Ministry of Women Affairs, Community, Small and Medium Enterprises Development; Tumisang Thabela, Permanent Secretary at the Ministry of Primary and Secondary Education; John Basera, Permanent Secretary at the Minisitry of Lands, Agriculture, Fisheries, Water, Climate and Rural Development, and other senior officials. “Leaving your desk and seeing projects in real life and receiving such excellent feedback is hugely rewarding,” said the OPEC Fund Country Manager. 

The key to long-term and sustainable prosperity is education. Among the OPEC Fund projects in Zimbabwe is the Primary School in Chivu, a small town south of the capital Harare, where 279 students are currently receiving first-class training. A US$20 million loan by our organization has financed information and communication technology, supporting the transformation of this rural area. Mr. Aly Bah was impressed by what he saw: “These kids will go on to achieve great things. Some may become economists, engineers, doctors, lawyers or scientists. Others may work for the government or international organizations. And, who knows: One may even become head of state one day?”