02 | OPERATIONS
SOUTH-SOUTH COOPERATION
By design and mission, the OPEC Fund has always seen itself as a spearhead of South-South cooperation. Founded in 1976, the Fund is supporting low and mid- dle income countries around the world and is distin- guished among its peer development institutions by its mandate to provide support exclusively to non-OPEC Fund member countries.
BOOSTING GHANA’S COCOA PRODUCTION The OPEC Fund contributed US$50 million as one of the lead arrangers to a major finance facility for the Ghana Cocoa Board (COCOBOD). The pre-export facility supports the financing needs for Ghana’s crop for the 2021/22 season and other operations. Cocoa is the mainstay of Ghana’s econ- omy and Ghana is the second largest cocoa ex- porter worldwide with a 20 percent market share. The crop generates about US$2 billion in foreign currency annually. More than 800,000 farmers and their families are involved in the sector.
PROMOTING REGIONAL INTEGRATION & INTERNATIONAL TRADE IN AFRICA The OPEC Fund extended a US$80 million loan to the African Export-Import Bank (Afreximbank) to finance international trade directly among corpo- rates or through financial intermediaries. The loan will support strengthening Afreximbank’s liquidity to grow its loan portfolio as it finances exports and imports in critical sectors such as agriculture, manufacturing and healthcare. Africa is still facing challenges to access trade finance when compared to other parts of the world, a situation exacerbated by the COVID-19 pandemic.
The Fund’s financing in 2021 showed the following regional distribution: Africa came to US$770 million (51 percent), followed by Asia with US$536 million (36 per- cent), while Latin America and the Caribbean received US$177 million (12 percent).
The OPEC Fund’s strategic direction as well as its operations are guided by a spirit of solidarity between the 12 member countries and the more than 125 partner countries where the institution has provided support in its almost five decades of existence.
Through the Fund’s commitments, the member coun- tries also make an active contribution to the delivery of the SDGs based on the conviction that global challenges can only be addressed jointly and by cooperation on all levels.
Accordingly, South-South cooperation also entails the OPEC Fund’s many partnerships with numerous gov- ernments, development finance institutions and organ- izations supporting the lower income countries of the Global South.
These collaborations provide a critical component in delivering the SDGs: leveraging that collaborative spirit to help the Global South help itself.
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