The Banking Executive Magazine - June 2022 Issue

OPEC'S NEW $100MLN FUNDING TO HELP INFRASTRUCTURE PROJECTS WORLDWIDE The OPEC Fund for International De- velopment (OPEC Fund) has allo- cated $100 million support for transportation and small and medium-sized enterprises (SMEs). The funding is expected to benefit public and private sector projects promoting sustainable development globally. The OPEC Fund provides financing from member countries to non-mem- ber countries exclusively. It has committed more than $22 bil- lion so far to development projects in more than 125 countries with an es- timated total project cost of $187 bil- lion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA/Positive Outlook by S&P in 2021. The various projects and the coun- tries receiving the benefits of the OPEC Fund are: MALAWI: A $20 million loan for the SADC Sub Regional Transport and Trade Facili- tation Project will support the reha- bilitation of 101 kilometers of roadway and 50 kilometers of feeder roads in the central region of the country. Additionally, 16,000 trees will be planted, several schools will be renovated. The project’s overall objective is to enhance competitiveness and socio- economic integration between Malawi and neighbouring Mozam- bique. UGANDA: A $30 million loan will finance the upgrade from gravel to a paved sur- face for a section of approximately 70 kilometers in the country’s central eastern region. The improvement of the national road network will facilitate better ac- cess to markets for farmers and traders and boost access to social services in the region. The project will directly benefit more than half a million people. CAMBODIA: Micro, small, and medium-sized en- terprises (MSMEs), including those that are women-owned and rurally located, stand to profit from a $20 million loan to the financial sector for on-lending. Improving access to financing is es- pecially important for MSME’s in the recovery period after the COVID-19 pandemic as these businesses are re- sponsible for a significant portion of Cambodia’s GDP. UZBEKISTAN: A $30 million loan to the country’s financial sector will support local small businesses through on-lending. the BANKING EXECUTIVE 52 ISSUE 162 JUNE 2022