Developing countries get $75 million from OPEC Fund

Kigali Rwanda's capital Kigali. The East African nation has also been supported by the OPEC Fund. Image:

The Organization of the Petroleum Exporting Countries (OPEC) Fund has committed $75 million to help a number of developing countries recover from the damage inflicted by the Covid-19 pandemic.

In East Africa, Rwanda has been given $15m as a loan to support businesses in the sectors most affected by the virus and help safeguard development gains made in the past two decades.

“The facility will enable the restructuring of existing bank loans to tourism related businesses through the National Bank of Rwanda, and provide lines of credit to large corporates, MSMEs, and savings and credit cooperatives,” reads an official statement.

“It will also support a Business Development Fund for vulnerable people engaged in informal work.”

Another $60 million will be released under the OPEC Fund’s Private Sector and Trade Finance Facility to finance SMEs in Asia and Latin America as they respond to the impact of COVID 19.

One loan will also strengthen agricultural supply chains, which have been especially hard hit by the pandemic in African countries.

OPEC Fund Director-General Dr Abdulhamid Alkhalifa said: “We are mobilizing both public and private sector development finance solutions to help our partner countries respond to the pandemic and meet their needs across different segments of their economies. It is important to be flexible and move quickly in response to developing country needs, now more than ever.”

The OPEC Fund has dedicated $1 billion to collective and coordinated COVID19 related financial assistance for developing countries.

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