The OPEC Fund for International Development has announced more than $1 billion in new financing for development projects in Africa and other regions as Western countries scale back bilateral aid to poorer countries.
The commitment is part of a broader $2 billion pledge by Arab donors over the next five years, announced at a high-level meeting of the Arab Coordination Group (ACG) in Vienna.
The Vienna-based fund, established by the Organization of the Petroleum Exporting Countries (OPEC) to support non-OPEC countries, is also launching a new trade finance initiative aimed at helping developing countries maintain imports and access liquidity in times of crisis.
Of the newly announced support, $720 million is earmarked for development projects in Africa, Asia, Latin America and the Caribbean, and $362 million in new loan agreements are being signed. The agreements include a $300 million financing plan for Rwanda over three years, and additional support packages of $65 million for Ivory Coast and $40 million for the Uganda-based East African Development Bank.
The fund also formalized a partnership with the Islamic Food Security Organization to promote climate-resilient agriculture and signed a cooperation agreement with the Central American Economic Integration Bank, which focuses on infrastructure, energy and human development.
The announcement comes amid a global shift in aid dynamics, with the United States and several European countries reducing their direct aid to developing countries. The meeting also held a special donor roundtable to discuss coordinated Arab support for the Sahel region, which is facing acute challenges such as persistent drought.