The OPEC Fund For International Development has pledged to provide more than $1 billion in funding to Africa and developing countries elsewhere as part of a broader $2 billion pledge by Arab nations over the next five years.

The fund, founded by the Organization of the Petroleum Exporting Countries to fund projects in non-OPEC member states, also laid out a new trade finance initiative to help countries secure imports and liquidity during periods of turmoil.

It comes as the United States and a number of European countries reduce the amount of bilateral aid they provide to poorer countries around the world.

The Vienna-based OPEC Fund announced on Wednesday around $720 million in new financing to support development efforts across Africa, Asia, Latin America and the Caribbean, and the signing of $362 million in new loan agreements.

Cooperation agreement

The agreements included a $300 million plan for Rwanda over the next three years as well as programmes worth $65 million and $40 million, respectively, in Côte d'Ivoire and for the Uganda-based East African Development Bank.

There was also a cooperation agreement with the Central American Bank for Economic Integration for infrastructure, energy and human development projects and the formalisation of a tie up with the Islamic Organization for Food Security on climate-resilient agriculture.

The OPEC Fund hosted the annual meeting of the heads of institutions of the Arab Coordination Group (ACG) this week.

The roundtable resulted in an ACG joint pledge of $2 billion financing over the next five years. A dedicated Arab Donors Roundtable on the Sahel also discussed greater support for the region's urgent challenges such as drought.