OPEC Fund for International Development (OFID)
The OPEC Fund for International Development (OFID) was established in 1976 as a development finance institution by the Member States of OPEC. It was formed as a collective channel of aid to the developing countries.
The prime objective of the organisation is to strengthen and support with the financial cooperation between OPEC members and other developing countries through financial support for socio-economic development. Presently, it has 13 member countries: Algeria, Ecuador, Gabon, Indonesia, IR Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.
Vision & Mission
- Vision: To aspire to a world where Sustainable Development, centered on human capacity-building, is a reality for all.
- Mission: To promote the growth of South-South Partnership with associated developing countries worldwide with the aim of decimating poverty.
Methods of funding of OPEC Fund for International Development (OFID)
- Extending concessionary financial assistance in the form of loans for development projects and programs, balance of payments support and trade financing
- Financing private-sector activities in developing countries
- Providing grants in support of technical assistance, food aid, research and similar activities, and humanitarian emergency relief
- Contributing to the resources of other development institutions whose work benefits developing countries
- Serving as an agent of OPEC Member Countries in the international financial arena whenever collective action is deemed appropriate
Working Areas of OPEC Fund for International Development (OFID)
- Agriculture: It is one of the international organisations that help in encouraging agricultural production and livestock production by improving rural infrastructure, such as irrigation systems and storage facilities for animal fodder. It has also been extended to foster the agricultural research.
- Education: It also works in the construction and rehabilitation of schools, purchase equipment and teaching materials, as well as provide teacher training. It has also sponsored the attendance of participants from developing countries to various conferences and workshops.
- Energy: It has supported energy projects ranging from infrastructure and equipment provision to research and capacity building with the help of UN’s Sustainable energy for all initiative.
- Financial: It helps in the channelising the funds for Micro-, small- and medium-size enterprises (MSMEs) through financial intermediaries such as national and regional development banks, commercial banks and leasing companies.
- Health: It works in healthcare program that includes the construction and modernization of hospitals, health clinics and other infrastructure. It is also plays an active role in the global fight against HIV/AIDS.
- Industry: It has benefited all sub-sectors, including building materials, steel, fertilizers and chemicals by providing funds.
- Telecommunications: The majority of funding to this sector was extended under OFID’s private sector facility, with financing going to mobile network operators in Africa and Asia.
- Transportation: It works on the construction and rehabilitation of roads, seaports and airports, to railways, inland waterways and urban mass transit.
- Water and Sanitation: OFID has helped finance a wide range of operations to help provide clean drinking water and safe sanitation systems. These range from large-scale water storage, treatment and distribution projects to village pumps and school latrines, as well as to schemes to optimize water use in arid regions.