JULY 2016 ChildofPlay exhibit highlightsplightofrefugee children The not-so-impossible dream OFID and UNDP launch Arab DevelopmentOFID andUNDPlaunch Portal Zero hunger by 2030: Ministerial Council holds 37th session Councilholds37th Ministerial OFID gifts sculpture to Vienna OFIDgifts OFID Quarterly is published COMMENT four times a year by the OPEC Fund for International Hunger: More than a moral outrage 2 Development (OFID).

OFID is the development finance agency established in January 1976 SPECIAL FEATURE by the Member States of OPEC ZERO HUNGER BY 2030 (the Organization of the Petroleum Exporting Countries) to promote Zero hunger by 2030: The not-so-impossible dream 4 South-South cooperation by extend- ing development assistance to other, Ending hunger: The nexus approach 11 non-OPEC developing countries. Food security: An integrated approach to a OFID Quarterly is available multidimensional problem. free-of-charge. If you wish to be Interview with chair of Committee on World Food Security 13 included on the distribution list, please send your full mailing details OFID in the Field 16 to the address below. Back issues of the magazine can be found on our Palestine: Food security through the dry seasons 18 website in PDF format. El Salvador: Promising a square meal for all 20 OFID Quarterly welcomes articles and photos on development-related Revitalizing rural communities in Africa 22 topics, but cannot guarantee publication. Manuscripts, together with a brief biographical note on the author, may be submitted MINISTERIAL COUNCIL to the Editor for consideration. HOLDS 37TH SESSION

The contents of this publication Ministerial Council gathers to mark do not necessarily reflect the OFID’s 40th Anniversary 24 official views of OFID or its Member Countries. Any maps are for Für Wien … a lasting ‘thank you’ 32 illustration purposes only and are not to be taken as accurate A hero’s journey: Annual Award pays representations of borders. Editorial tribute to refugee shipwreck survivor 34 material may be freely reproduced, providing the OFID Quarterly is OFID announces 2016 Scholars 36 credited as the source. A copy to the Annual Report 2015: Gearing up for a new Editor would be appreciated. development agenda 39

NEWSROUND

OFID hosts high-level food security seminar 41

OFID and UNDP launch Arab Development Portal 42

OFID-ICTP Postgraduate Fellowship Program 43

Solidarity concert aids Ecuador’s earthquake victims 44

OFID hosts annual meeting of international HR body 45

Children promote OFID’s message of equality at Vienna‘s biggest annual event 46 JULY 2016 OFID art auction raises over €50k for Austrian Red Cross refugee program 48

OFID Diary 49 Meetings attended by OFID 51 155th Governing Board photo gallery 52 Loan and grant signature photo gallery 54

SPOTLIGHT Equal Dreams: A message of hope to and from refugee children worldwide 56 13

MEMBER STATES FOCUS

Ecuador’s Galapagos Islands to expand on wind farm success 59

Qatar highlights importance of Arab civil society 60

Iran doubles its number of female parliamentarians 61

Algeria/UAE: Bilateral business exchange bears fruit 61 24 OPEC Saudi Aramco to play key role in national transformation program 62

PUBLISHERS THE OPEC FUND FOR INTERNATIONAL DEVELOPMENT (OFID) Parkring 8, P.O. Box 995, A-1010 Vienna, Austria Tel: (+43-1) 51564-0; Fax: (+43-1) 51392-38 Email: [email protected] www.ofid.org 42

EXECUTIVE EDITOR Arya Gunawan Usis

EDITOR Audrey Haylins

CONTRIBUTORS Lilian Al-Bazaz, Reem Aljarbou, Nadia Benamara, Damelys Delgado, Fatma Elshhati, Steve Hughes, Anna Ilaria-Mayrhofer, Ranya Nehmeh, Karin Oszuszky, Natalia Salazar, Fuad Siala, Alesandra Solano, Arya Gunawan Usis, Justine Würtz

PHOTOGRAPHS Abdullah Alipour Jeddi, Carlos Opitz(unless otherwise credited)

PRODUCTION Iris Vittini Encarnacion

DESIGN etage.cc/krystian.bieniek

PRINTED IN AUSTRIA Ueberreuter Druckzentrum GmbH

This publication is printed on paper produced from responsibly managed forests. 56 Maps are for illustration purposes only and are not to be taken as accurate representations of borders. FRONT COVER PHOTO CREDIT: RSOOLL/SHUTTERSTOCK.COM COMMENT

Hunger: More than a moral outrage

he statistics are shocking, so utterly appalling T as to be beyond comprehension: 780 million people deprived of sufficient nourishment; three million under-fives dead from hunger in just one year; and, 66 million primary school children sent to class every day on empty stomachs. Tragically, this is not the trailer for some post- apocalyptic sci-fi blockbuster, but hard truths about the world we live in. And the sting in the tail? The unpalatable fact that 1.3bn tonnes, or 30 percent, of the food produced for hu - man consumption is lost or wasted globally every year— enough to feed the 780 million hungry four times over. Factor in the precious resources that are squandered in the process—water, land, energy, labor and capital— and an even grimmer picture emerges. Little wonder then that the goal of “zero hunger” sits alongside that of “no poverty” at the top of the 2030 Agenda for Development. The challenges, however, are immense and deeply complex. It’s not just a question of producing enough food. It’s about efficient distribution networks and value chains; the smart management of limited natural re - sources; and the effective mobilization of all stakehold- ers, from governments to civil society and the private sector.

2 OFID QUARTERLY JULY 2016 COMMENT

And that’s just scraping the surface. When needs must, we’ve also stepped in to support the work of organizations like the World Food Program, The fact remains, the problem of hunger is so en - providing funding for school feeding programs or for trenched that it has taken over twenty years to reduce the distribution of emergency rations to famine-struck the number of undernourished in developing regions regions. from 991 million to 780 million. Through hard-won experience, we’ve come to rec- Granted, the figures look better as a percentage of ognize the importance of an integrated approach to food the total population—23.3 percent in 1990–1992 com- security, fully embracing the notion that success will pared with 12.9 percent in 2014–2016. But there is no depend on all elements being assessed and tackled as an ignoring the bottom line: far too many people’s lives are organic whole. blighted by the physiological and emotional impact of ill nourishment. This is why our strategic plan for 2016–2025 has as its pillar the so-called energy–water–food nexus, sup - Which begs the question: is the total elimination of ported by transportation as an enabling component. hunger possible by 2030 … or just pie in the sky? Already in 2015, we channeled US$726m, or more than To OFID’s mind, the answer is clear. No stone must 60 percent of our total commitments for the year, to be left unturned to ensure proper nutrition for each and those four areas. These efforts will continue and inten- every inhabitant of our shared planet. It’s a challenge— sify, as we work with our partners toward the Sustainable one that will require innovation, financial resources and Development Goals. political will—but it can and must be done. However, as well as practical action where it’s need- For OFID, the issue of food security has been a key ed, the international community also has to work at focus of our operations for four decades. Over the years, changing mentalities in the industrialized world, where we’ve channeled billions of dollars into rural infrastruc- food waste every year equals almost as much as the entire ture—from irrigation systems and electricity networks net production of sub-Saharan Africa (222 million vs. to storage facilities and roads—to support the produc- 230 million tonnes). tion, processing and distribution of produce. We must banish the idea that aesthetics is a valid With the bulk of food being grown by family farm - reason for throwing away “imperfect” produce. And we ing, we’ve provided technical assistance, capacity build- must educate consumers as to the hidden value of food: ing and credit to small producers to help them develop the precious and often dwindling resources used to grow sustainable cultivation methods and improve the qual- it, process it, package it, and deliver it—sometimes from ity and quantity of their yields. one side of the world to the other. And we’ve worked to integrate the might of the pri- For, at the end of the day, hunger in a world of plen- vate sector into value chains to give small farmers better ty is not just a moral outrage; for millions it is a veritable access to markets—both domestic and export—and a death sentence. And who would wish that on another higher, fairer price for their produce. innocent human being? N

OFID QUARTERLY JULY 2016 3 Zero hunger by 2030: The not-so-impossible dream PHOTO: SCOTTCHAN/SHUTTERSTOCK.COM

4 OFID QUARTERLY JULY 2016 Food security is a key component of the 2030 Agenda for Sustainable Development. Achieving it, however, is a challenge so complex that some skeptics see it as a bridge too far. Not necessarily, say the experts who spoke to the Quarterly.

by Steve Hughes

OFID QUARTERLY JULY 2016 5 ZERO HUNGER BY 2030

ustainable Development Goal 2 sets out to: “End hunger, achieve food security S and improved nutrition, and promote sustainable agriculture.” But food security is a complex challenge, linked to all manner of oth- er development issues such as health, the envi- ronment and economics. With an estimated 800 million hungry people in the world today (meaning that one in nine doesn’t get enough food to be healthy and lead an active life), hun- ger and malnutrition are the number one risk to health worldwide. So how realistic is it to think we’ll be able to end hunger by 2030? The statistics are alarming. The aforemen- tioned headline figure of 800 million is relative- <5% Very low ly small when the quality of food is considered as well as quantity. World Food Program (WFP) 5% 14.9% – Moderately low Chief Economist Arif Husain says the number of poorly nourished people is more like two 15% 24.9% – Moderately high billion. Another way of looking at it is that every 25% 34.9% – High day, 21,000 people die because of hunger-related problems, and about one-third of this number 35% and over – Very high are children under five years of age. “As an economist, I have to put a value on Missing or insufcient data this sort of thing,” says Husain. “The cost to the Source: FAO, 2015, FAO Statistics Division, global economy is about 5 percent of global GDP. Hunger Map, http://www.fao.org/economic/ess/ess-fs/en/. About US$3.5tr per year—or US$500 per person, Reproduced with permission. per year—is lost in productivity and direct healthcare costs. Another way of saying this is that individuals lose more than 10 percent of and marginalized. The Millennium Develop - their lifetime earnings because of food insecu- ment Goals have failed them. We’ve failed them.” rity. In Africa, it’s particularly bad. The incre - The WFP’s Husain agrees: “Their biggest mental socioeconomic cost ranges from 1.9 to constraint is not necessarily yield or productiv- 16.9 percent of GDP, depending on the country.” ity, but the ability to ready their produce for, and move it to, market. There is a lack of road and rail links, of processing and storage ability.” A predictable map These people have no purchasing power, he Predictably, an overwhelming majority of the explains, so there is nothing to generate eco - most vulnerable two billion live in developing nomic activity in these areas: no employment, countries: “Let me give you the map,” says no growth and very little money to buy food. Kanayo Nwanze, President of the International So the target to end hunger and achieve Fund for Agricultural Development (IFAD). “Our food security and improved nutrition by 2030 focus is very simple. More than three-quarters seems as far away as ever. Not necessarily, says of the world’s poor are in developing countries. Axel Gruber, Chief Operations Officer of the They live in rural areas and their source of live - Common Fund for Commodities (CFC): “There lihood is smallholder agriculture. If you’re going is a contribution being made by the big and by to eliminate hunger and poverty, go to where the small. The CFC, with relatively small inter- the problem is.” ventions of up to US$1.5m per project is small, It seems ironic that the people struggling but the interventions reach the farmers who are with food security the most are the very people fighting malnutrition and poverty. We estimate growing the food. But these people, says that our projects this year would make a differ- Dr Ismahane Elouafi, Director-General of the ence for over 100,000 farmers in the most vul- International Center for Biosaline Agriculture nerable areas; we are making a difference.” (ICBA), are the poorest of the poor. They have The CFC works with farmers and commu- little access to finance, to infrastructure or to nities to improve agricultural production meth- food. “These people have been left out of the ods, support the acquisition of new land, in - Green Revolution and are extremely vulnerable crease the productivity of existing land and

6 OFID QUARTERLY JULY 2016 ZERO HUNGER BY 2030

<5% Very low

5% 14.9% – Moderately low

15% 24.9% – Moderately high

25% 34.9% – High

35% and over – Very high

Missing or insufcient data Prevalence of undernourishment in the population (percent) in 2014–2016 more, intervening in technology and along the producing more food than we need to feed our value chain to improve the delivery of produce populations. The problem is distribution, access, to traders and cooperatives. The CFC even helps loss and waste.” with marketing to improve potential sale out- Nwanze is referring to the four billion comes. tonnes of food produced globally every year. “This is more than enough to feed everyone on A distinct possibility the planet today and in 2030,” says the WFP’s Husain. But about 30 percent of this is wasted. The WFP, on the other hand, is the largest hu - What is interesting, he argues, is to see how this manitarian agency in the world. In any given waste occurs. In poor countries, food is wasted year, it assists between 80 and 90 million people before it reaches the plate; in production and in 70 to 80 countries. Although totally volun- processing. In developed countries, it’s wasted tarily funded, it has revenues of between US$5bn on the plate (or in the fridge or supermarket). But and US$6bn per year and deals with everything it’s wasted for the same reason, explains Husain: from emergencies caused by climatic shocks to “Economically, the food is of little value. In de- building resilience to disasters in marginalized veloped countries, we spend little of our income areas. It works on an entirely different scale to on food, so if it goes bad in the fridge, no one the CFC, but the WFP’s Husain echoes Gruber’s worries. In developing countries, since farmers cautious optimism: “Zero hunger in less than 15 don’t have sufficient access to markets and be- years? Yes it is possible. But it’s not going to be cause food is not valued as it should be, they easy.” don’t process it well enough.” IFAD’s Nwanze shares this optimism too: Even more interesting (and concerning) is “For sure, achieving the SDGs by 2030 is quite the opportunity cost of this overproduction. ambitious. But they represent a rather unprece- Producing it consumes about 250 cubic km of dented opportunity to practically reduce ex- water; that’s about three times the volume of treme poverty and hunger, if not eliminate it. Lake Geneva, says Husain. And not just this, but We have to be ambitious and I believe we already it also takes up 1.4bn hectares of land; more than have the answers. The data shows the world is a quarter of the world’s total arable area. E

OFID QUARTERLY JULY 2016 7 ZERO HUNGER BY 2030

Undernourishment around the world, 1990–92 to 2014–16

Number of undernourished (millions) and prevalence (%) of undernourishment

1990–92 2000–02 2005–07 2010–12 2014–16*

No. % No. % No. % No. % No. %

WORLD 1,010.6 18.6 929.6 14.9 942.3 14.3 820.7 11.8 794.6 10.9

DEVELOPED REGIONS 20.0 <5.0 21.2 <5.0 15.4 <5.0 15.7 <5.0 14.7 <5.0

DEVELOPING REGIONS 990.7 23.3 908.4 18.2 926.9 17.3 805.0 14.1 779.9 12.9

Africa 181.7 27.6 210.2 25.4 213.0 22.7 218.5 20.7 232.5 20.0

Northern Africa 6.0 <5.0 6.6 <5.0 7.0 <5.0 5.1 <5.0 4.3 <5.0

Sub-Saharan Africa 175.7 33.2 203.6 30.0 206.0 26.5 205.7 24.1 220.0 23.2

Eastern Africa 103.9 47.2 121.6 43.1 122.5 37.8 118.7 33.7 124.2 31.5

Middle Africa 24.2 33.5 42.4 44.2 47.7 43.0 53.0 41.5 58.9 41.3

Southern Africa 3.1 7.2 3.7 7.1 3.5 6.2 3.6 6.1 3.2 5.2

Western Africa 44.6 24.2 35.9 15.0 32.3 11.8 30.4 9.7 33.7 9.6

Asia 741.9 23.6 636.5 17.6 665.5 17.3 546.9 13.5 511.7 12.1

Caucasus and Central Asia 9.6 14.1 10.9 15.3 8.4 11.3 7.1 8.9 5.8 7.0

Eastern Asia 295.4 23.2 221.7 16.0 217.6 15.2 174.7 11.8 145.1 9.6

South-Eastern Asia 137.5 30.6 117.6 22.3 103.2 18.3 72.5 12.1 60.5 9.6

Southern Asia 291.2 23.9 272.3 18.5 319.1 20.1 274.2 16.1 281.4 15.7

Western Asia 8.2 6.4 14.0 8.6 17.2 9.3 18.4 8.8 18.9 8.4

Latin America and the Caribbean 66.1 14.7 60.4 11.4 47.1 8.4 38.3 6.4 34.3 5.5

Caribbean 8.1 27.0 8.2 24.4 8.3 23.5 7.3 19.8 7.5 19.8

Latin America 58.0 13.9 52.1 10.5 38.8 7.3 31.0 5.5 26.8 <5.0

Central America 12.6 10.7 11.8 8.3 11.6 7.6 11.3 6.9 11.4 6.6

South America 45.4 15.1 40.3 11.4 27.2 7.2 ns <5.0 ns <5.0

Oceania 1.0 15.7 1.3 16.5 1.3 15.4 1.3 13.5 1.4 14.2

*Data for 2014 –16 refers to provisional estimates.

Source pages 8 and 9: FAO, IFAD and WFP. 2015. The State of Food Insecurity in the World 2015. Meeting the 2015 international hunger targets: taking stock of uneven progress. Rome, FAO. Reproduced with permission.

8 OFID QUARTERLY JULY 2016 ZERO HUNGER BY 2030

F The resulting CO2 from the overproduction biofuel, particularly in the aviation industry. is equivalent to 3.3bn tonnes—the third biggest Similarly, ICBA looks to improve soil by using emission after China and US, he explains. “So amendment technologies. It may use different this is not about ‘by wasting this food, people composting methodologies, for example, which cannot eat it’. What we really save if we prevent can involve using waste from local households. this overproduction is water, the environment ICBA often works with a country’s nation- and the potential for future generations.” al programs to bring its expertise to bear, a way ICBA’s Elouafi says that limited natural of working that the CFC’s Gruber is all too aware resources are making the issue of food security of: “Even though we want to focus on very poor- more complex. “When we started the whole est, it’s often difficult to reach them,” he says. development agenda in the 1960s, we didn’t “You need an institutional framework to direct really factor in the limited nature of natural things. We reach the very poor only wherever resources. The Green Revolution was based on there is a good entrepreneur or a functioning high input—high use of fertilizers, a lot of wa- cooperative that can build up knowledge. Wher- ter—and intense methods.” However, she says, ever this institutional linkage is not present, we we now know that water is one of highest risk cannot approach the very poor themselves.” factors in the food security issue. By 2025, two- For the WFP’s Husain, food security will thirds of the world will be living in regions that only become a reality by 2030 if two interrelated The trajectory of are water scarce: “We can’t keep focusing on challenges are overcome: there must be more undernourishment arable land, or on a few crops that aren’t nutri- national ownership of the problem—countries in developing regions: tious. We can’t keep doing it the same way.” and government themselves must be at the cen- actual and projected ter; and investment must be directed directly progress towards the Marginal gains into grassroots agriculture, rural development MDG and World Food and human capital. “Rural infrastructure mat- Summit targets It’s because of this that ICBA is focusing on mar- ters,” he says. “If there’s investment, then a E ginal environments—environments with bio- physical and social constraints that are extreme- ly vulnerable to the effects of climate change. Millions Percentage The people who live in these places are ‘socially 1,100 45 marginalized’ and contribute to the world’s 800 million hungry. “Agricultural land is not 991 1,000 40 enough,” says Elouafi. “It wouldn’t give us 927 enough food given the increasing population.” 908 ICBA is helping marginalized farmers to diver- 900 35 sify their crops to improve nutrition and prevent further land degradation. Elouafi explains that 800 30 805 it’s about getting the right crop to the right en- 780 vironment: “We screen hundreds of genotypes 700 25 and look for crops that do well in marginalized 23.3% environments. Several of these species are or- 600 20 17.3% phan crops that many people don’t know WFS target about—they’re not famous crops.” 18.2% 500 15 ICBA works with national programs and 12.9% 14.1% helps farmers produce seeds for other local MDG target farmers. It focuses on the water ‘problem’ too, 400 10 but from a novel perspective: “We’re increas - ingly interested in expanding the water supply: 300 5 considering different water sources for agricul- tural purposes to give us more choices,” says 0 0 Elouafi. “There’s treated waste water, for exam- ple, or using drainage water and reusing it from 1990–92 2000–02 2005–07 2010–12 2014–16 crop to fish to crop. And then there’s seawater— can we find crops that can be grown with high Number of people undernourished (left axis) salinity?” ICBA already has a few species that grow in Prevalence of undernourishment (right axis) these harsh conditions—the famous Salicornia, which can be used as a salad, a forage, or as a Note: Data for 2014–16 refers to provisional estimates.

OFID QUARTERLY JULY 2016 9 ZERO HUNGER BY 2030

The changing distribution of hunger in the world: numbers and shares of undernourished people by region, 1990–92 and 2014–16

1990–92 2014–16 Number Regional share (millions) (%) H J 1990–92 2014–16 1990–92 2014–16 G I A H J F A Developed regions 20 15 2.0 1.8 G I A F B Southern Asia 291 281 28.8 35.4 E E B C Sub-Saharan Africa 176 220 17.4 27.7

B D Eastern Asia 295 145 29.2 18.3 E South-Eastern Asia 138 61 13.6 7.6 D F Latin America and the Caribbean 66 34 6.5 4.3

G Western Asia 8 19 0.8 2.4

H Northern Africa 6 4 0.6 0.5 D C C I Caucasus and Central Asia 10 6 0.9 0.7 J Oceania 1 1 0.1 0.2 Total = 1,011 million Total = 795* million Total 1,011 795* 100 100

Notes: The areas of the pie charts are proportional to the total number of undernourished in each period. Data for 2014–16 refers to provisional estimates. All figures are rounded. *Includes data for Sudan, which is not included in the figure for sub-Saharan Africa, following the partition of the country when South Sudan became an independent state in 2011.

Source: FAO, IFAD and WFP. 2015. The State of Food Insecurity in the World 2015. Meeting the 2015 international hunger targets: taking stock of uneven progress. Rome, FAO. Reproduced with permission.

F commodity has more economic value and it “Look at it this way: when we were in the finan - generates economic activity. And if there is mon- cial crisis, the US bailout package was around ey to spend on food, people will bring the food US$800bn. In the bigger scheme of things, no matter how marginalized the environment. US$270bn is not such a huge figure.” But speak- That is certain.” ing of the aforementioned document, FAO Di- rector-General José Graziano da Silva sums up Not just a one-off the mountain still left to climb: “The message of the report is clear: if we adopt a ‘business as But Husain urges caution when considering the usual’ approach, by 2030, we would still have 2030 target: “The food security problem wasn’t more than 650 million people suffering from created in a day and won’t be solved in a day. We hunger.” have to make sure people have enough money The fight for food security requires coordi- to buy food, continuously; to make sure there is sustained purchasing power within the bottom nated and complementary responses from all two billion people. It’s not just about getting to stakeholders. Major new commitments to hun- zero hunger; it’s about staying at zero hunger. ger reduction have recently been taken at the This is only possible if we invest in human cap- regional level—such as the Hunger-Free Latin ital and give people the opportunity to use this America and the Caribbean initiative and Afri- capital by creating jobs.” ca’s Renewed Partnership to End Hunger by Steve Hughes is a But how much will all this cost? A recent 2025—but with wars raging and refugee crises journalist and copy- UN report prepared by the Food and Agriculture stealing attention, it remains to be seen wheth- writer based in the er the current impetus will be sustained. UK. His background Organization (FAO), IFAD and the WFP estimat- is in economics and ed eradicating world hunger sustainably by 2030 Failure, though, is not really an option. As financial journalism, will require an additional US$267bn per year, on Husain says: “We don’t have a choice but to solve but he has also spent average, for investments in rural and urban ar- the hunger problem. We live in a globalized time writing for press offices and internal communications depart- eas, and in social protection. “If we remember world. It is not one country’s problem or one ments. He was an editor and that the global cost of hunger is US$3.5tr per year city’s problem. People who have and who don’t speechwriter with OPEC between and the cost of food waste is US$750bn, then have can see each other clearly. In this type of 2008 and 2012 and now writes for various businesses and organizations. US$267bn does not seem an extreme amount,” environment, inclusiveness and equality are says Husain. vital.” N

10 OFID QUARTERLY JULY 2016 ZERO HUNGER BY 2030 PHOTO: ROGER JONES/SHUTTERSTOCK.COM ROGER PHOTO:

Ending hunger: The nexus approach

In the quest to ensure adequate supplies of food for a growing global population, development planners must be sensitive to the sector’s intimate links with the equally important and challenging goals of energy and water security. by Fuad Siala

ince the adoption of the Millennium where the problem of energy poverty manifests Development Goals (MDGs) in the year itself. In these countries, energy is in seriously S 2000, the proportion of undernour- short supply to pump water for crop irrigation, ished people in the developing world has for running farm machinery, as well as for de - dropped by almost 50 percent. Despite these livering produce to consumers. profound achievements, however, the vast ma- jority of the world’s hungry people continue to Beware the bigger picture live in developing countries, where 12.9 percent Food, water, and energy are intimately inter- of the population is not adequately fed. For these twined, and actions in one sector influence the countries, with populations growing at a brisk others. For example, in the pursuit of food secu- pace, ending hunger remains a fundamental rity, governments may adopt policies that aim development challenge. at food self-sufficiency through intensifying The challenge is compounded by the re - domestic agriculture. For this purpose, energy, quirements of huge amounts of water and ener- water and chemical inputs are often heavily gy for the production of enough staple foods. subsidized, resulting in unsustainably increased Freshwater is under growing stress in many demand on these natural resources, leading in developing countries, not only because of in- turn to their degradation. While food security creased use in agriculture but also due to in - may be achieved, this could be at the expense of creased demand for competing uses. Further- soil and groundwater depletion and increased more, it is in developing countries specifically vulnerability to energy market volatility. E

OFID QUARTERLY JULY 2016 11 ZERO HUNGER BY 2030

barley as feedstock for their production—com- Because of growth in global population and the consumption patterns of an expanding middle class, in less than two decades pete with the production of food for land and three key demands will sharply increase... PRESSURE water. Consequently, while energy supplies may Increased be secured, food shortages may occur. Energy-intensive desalinization Urbanization These examples serve to demonstrate the efforts use energy to produce % dangers of thinking in silos—sector-specific R 0 drinkable water D O 4 E interventions that ignore the underlying inter- F + E M R N D E E A dependence of the food, water and energy sec- N T R N A A G D Y tors. The examples, however, should not be M W F E + O H taken in any way as endorsing one set of nation- D 5 S R 0 E % al policies over another. The point is that cir - R F Energy- cumstances differ from one region to another, and interventions need to be designed holisti- Water- cally for a specific context. Through such an Food production Food production Food approach (the nexus-thinking), the unintended requires energy requires water consequence of shifting a crisis from one sector to plant and harvest Nexus to another can be avoided. In essence, the nex- us-thinking in development interventions is a structured way to address cross-cutting issues related to the three (and other related) sectors PRESSURE PRESSURE in a given context, identifying trade-offs and Demands of Population Crops are being assessing the impacts of the planned interven- converted into Larger Middle Increase tions. biofuels in some Class countries D R EMAND FO Beyond the nexus FOOD +35% In fact, the need for integrated policies and ac- Source: http://www.waterpolitics.com/2014/06/09/water-risk-and-global-security/ tions is a characteristic of all Sustainable Devel- opment Goals (SDGs). With the MDGs there was F In another example, drip irrigation is promot- no attempt to produce an integrated system, and ed as a demand-side management option for this failure did not help facilitate policy integra- reducing water consumption in agriculture in tion across sectors. In contrast the SDGs repre- arid areas. In comparison with sprinkler and sent a set of global goals and targets that address flood irrigation systems, this type of technology the systemic issues that slow and hinder devel- minimizes non-productive evaporative water opment. The wider scope of the SDGs reflects an losses, leading also to savings in energy that improved understanding of the complexity of would otherwise be needed for pumping the lost the relationships between the different aspects water. Since arid areas have abundant solar en- of development. This complex relationship is ergy, drip irrigation in those areas is usually manifested in the fact that individual SDGs powered by photovoltaic systems, which among overlap and many targets might contribute to or other advantages save on the costs of connecting adversely affect several goals. For example, SDG2 remote farms to a central grid. (ending hunger) is closely related to SDG1 (end- However, a scenario of “unintended conse- ing poverty); SDG6 (ensuring water availability); quences” may develop, where farmers need to pay SDG7 (ensuring energy access); and SDG12 (sus- back the usually higher costs of the solar photo- tainable consumption and production patterns). voltaic-powered drip irrigation systems. Farmers These goals are interdependent and they also then may have to switch their production from both reinforce and impose constraints on one staple crops that are basic and important in peo- another. ple’s everyday food intake to cash crops that are By tackling the SDGs in an integrated way grown for sale at higher prices. In these situations, rather than using a silo approach, it will be pos- risks to food security may ensue. sible to achieve multiple targets simultaneously. A third example is policies that encourage Likewise, an understanding of the inherent in- unchecked expansion of biofuels production in terlinkages within the SDGs will help facilitate pursuit of energy self-sufficiency and/or ex - integrated planning and decision-making. This, ports-driven foreign currency income. The so- in turn, will optimize the allocation of resourc- called first generation biofuels—those that de- es between competing needs in order to better pend on food crops such as maize, wheat and support development. N

12 OFID QUARTERLY JULY 2016 ZERO HUNGER BY 2030

PHOTO: FAO/ALESSANDRA BENEDETTI FAO/ALESSANDRA PHOTO: Food security: An integrated approach to a multidimensional problem

As chair of the Committee on World Food Security (CFS), Amira Gornass is a global thought leader on the eradication of hunger. In the following interview, she emphasizes the need for an approach to food security that is people-centered, mobilizes all stakeholders, and cuts across all related sectors. Interview by Audrey Haylins

OQ: Despite some progress under the MDGs, close OQ: According to the FAO, one-third of food pro - to 800 million people globally are still affected by duced for human consumption is lost or wasted every hunger. What feelings does this statistic arouse in year. Why is this happening and what can be done you? about it? AG: I feel very sad to know that so many people AG: Food losses and waste are the consequenc- go to bed hungry every single day. I feel espe - es of the way food systems function; technical- “Food losses cially sad for those parents who are unable to ly, culturally and economically. We have to and waste are the feed their children. It is unacceptable for me to differentiate between food losses and food waste. consequences of the see that there are many hungry people while The first happens during the production and what we produce today is sufficient to feed a transformation processes, while the second, or way food systems global population of 10 billion—and we are just food waste, happens at the consumption stage. function; technically, over 7 billion. Causes vary and often interrelate. Some are culturally and Coming from a developing country, Sudan, direct, immediate causes (poor harvest schedul- economically.” where certain communities still suffer from ing and timing; careless handling; inadequate hunger and malnutrition, I feel an obligation storage; or poor transport). Others stem from the to get involved and not allow this situation to conditions at retail (temperature, humidity, light- continue. I hope that through my work I would ing, etc.). Food waste by consumers is driven by be able to contribute effectively to the global behavioral causes, including habits of food buy- efforts for the eradication of hunger and mal - ing, preparation and consumption. Marketing nutrition. techniques strongly influence those behaviors. E

OFID QUARTERLY JULY 2016 13 ZERO HUNGER BY 2030

F The 2014 report from the CFS High Level at the national and regional levels. This is what Panel of Experts (HLPE) provides all food secu- CFS does at the global level to agree on evi - rity and nutrition stakeholders with evi - dence-based sustainable and legitimate policy dence-based recommendations on how to re - recommendations. duce food losses, for instance, by improving infrastructure, particularly transport, energy OQ: What about the governments of developing and market facilities. Of course, this requires countries affected by food insecurity? Are there spe- government action, and in many instances con- cific policy steps that they can take to improve the In North America & Oceania alone, 5,814,000 tonnes of roots certed and collective action with local authori- situation? and tubers are wasted at the ties and the private sector. AG: At CFS we believe that any attempt to end consumption stage alone. Capacity development in the form of edu- hunger and malnutrition needs a truly cation, training and extension services for farm- multi-stakeholder approach that gathers public ers and all actors across the food chain is possibly and private actors, at the global, regional, na - the most powerful tool for reducing food losses. tional and local levels. Food waste could be reduced by promoting So, governments of developing countries consumer behavior change by raising awareness need to work together with the civil society or- on the amount of household food waste and its ganizations, the private sector, UN Agencies, In industrialized countries, cost; making changes in the food that is sold, research and financial institutions to ensure consumers throw away like changing packaging or by giving advice on food security and nutrition and make a differ- 286 million tonnes of cereal food storage, etc. ence in this field. products. Then, they need to make use of CFS policy OQ: Are there any stakeholders that you would like instruments which address basic challenges— to see getting more involved in the food supply chain such as the Voluntary Guidelines on the Respon- with a view to bolstering food security? sible Governance of Tenure of Land, Fisheries AG: Food security is a complex, multi-dimen- and Forests; Principles for Responsible Invest- sional sustainable development issue, linked to ments in Agriculture and Food Systems; and the health, sanitation and nutrition, but also to Framework for Action for Food Security and sustainable economic development, environ- Nutrition in Protracted Crises—and outline ment, and trade. Strengthening food security concrete actions that guide governments, but Along with roots and tubers, requires all stakeholders—not just govern- can also be used by all stakeholders, in their fruit and vegetables have the highest wastage rates of any ments—to work together and play their part. different capacities, to improve food security food products; almost half of For this we need to see more involvement of and nutrition situation. all the fruit and vegetables produced are wasted. farmers, the private sector, civil society and Implementing CFS policy recommenda - international organizations in policy discus - tions is a powerful enabler for governments of sions to identify challenges and policy gaps to all countries that seriously want to see progress Source: FAO, SAVE FOOD: Global Initiative on Food Loss and Waste ensure food security and improve malnutrition towards zero hunger. Reduction, http://www.fao.org/save-food/ en/. Reproduced with permission. Per capita food losses and waste, at consumption and pre-consumptions stages, in different regions (in kg per year)

350 Consumer

300 Production to retailing

250

200

150

100

50

0 Europe North Industrialized Sub-Saharan North Africa, South and Latin America America and Asia Africa West and Southeast Oceania Central Asia Asia Source: FAO. 2011. Global food losses and food waste – Extent, causes and prevention. Rome. Reproduced with permission.

14 OFID QUARTERLY JULY 2016 ZERO HUNGER BY 2030

parent and inclusive process. They are universal, relevant to both developing countries and de- veloped ones. They are acceptable to different contexts and demand action from all countries within a precise time frame.

OQ: Clearly there is no quick fix for such a complex problem, but could you point to two core actions that could lay the foundations for a sustainable solution? AG: In my view, initiatives that empower wom- en and are people-centered will have greater impact on food security and nutrition. Women produce food for their households, they work in agriculture and use their earnings to buy food, healthcare, and resources for children and the family. Second, ending hunger and promoting better nutrition need a people-centered ap - “In my view, proach, which is more multi-stakeholder and initiatives that multi-sectoral. That would mean, as we look at increasing responsible investment in order to empower women and meet the need for more food, reducing food are people-centered losses and waste, or building resilience to cli - will have greater impact mate change, we would focus on decent jobs, on food security and reducing inequality and fostering inclusiveness. nutrition.” Amira Gornass speaking at the March 2016 OFID seminar on food security. OQ: Could you explain the role of CFS in working towards ending global hunger? OQ: Where does climate change fit into the equa- AG: CFS is the most inclusive international and tion? intergovernmental platform for all stakeholders AG: The poorest among the poor are the most to work together to ensure food security and affected and the most seriously threatened by nutrition for all. the effects of climate change, and we need to act The Committee provides evidence- and urgently if we are to avoid catastrophic conse - knowledge-based policies that accommodate quences. Based on the findings of an HLPE re - the different views and interests of its stakehold- port, CFS has endorsed a set of recommenda - ers; it helps in addressing policy gaps that may tions on food security and climate change. impede effective eradication of hunger and These advise on how to integrate climate change malnutrition and provides a platform for shar- concerns in food security policies and programs ing, learning and identifying challenges and and to increase the resilience of vulnerable opportunities. This can help in the effective groups and food systems to climate change. implementation of these policies and conse - They give particular attention to the develop - quently win the fight against hunger and mal- ment of climate resistant crops and to the needs nutrition. of farmers and food producers, especially small- CFS’ work to achieving zero hunger is not scale producers. only to debate, but to reach consensus on poli- cies that address very controversial issues, such OQ: SDG2 sets out to eliminate hunger by 2030. as food price volatility, biofuels and climate How realistic do you consider this goal? Are the change, and that have a tremendous impact on hunger targets more achievable under the SDG food security and nutrition. framework than they were under the MDGs, and if With such diverse perspectives involved so, why? from multiple stakeholders from all over the AG: Significant progress has been made under world, it is essential that CFS policy debates have MDGs, which is why I think eradicating hunger a solid evidence base on what policy changes are by 2030 is possible. Hunger targets are more needed. CFS established a high level panel of achievable under the new 2030 Agenda as the experts that, on request, provides evidence-based Sustainable Development Goals are country advice on pressing issues in food security and owned. They have been developed by a trans - nutrition. N

OFID QUARTERLY JULY 2016 15 PHOTO: SEAN SPRAGUE / ALAMY STOCK FOTO

16 OFID QUARTERLY JULY 2016 OFID in the Field

In fighting hunger, OFID collaborates with a broad coalition of partners to finance and implement projects that tackle food security from a variety of angles. Whether it’s infrastructure to support the production, marketing and distribution of produce; assistance to small farmers to develop sustainable and profitable cultivation methods; the integration of the private sector; or simply emergency food rations for those in dire need, OFID mobilizes all means at its disposal to help create a world free from hunger. The following impact stories are just three examples of its important work on the ground.

OFID QUARTERLY JULY 2016 17 OFID IN THE FIELD

Palestine: Food security through the dry seasons

An innovative project implemented by ain-fed agriculture is a challenge when the country’s climate is both dry and American Near East Refugee Aid (ANERA) R hot. This is a reality for Palestinians in the West Bank, where farming has been a part and co-funded by OFID has successfully of life for thousands of years. With more than adopted unconventional methods to 40 percent of the land under cultivation, agri- culture is vital to the economy. Water scarcity, tackle water scarcity and boost agricultural however, is threatening the region’s future. production in Palestine. During the long summer months, farmers struggle to irrigate their crops. Those who can by Alesandra Solano afford it have to resort to purchasing additional water, but even this cannot prevent the drop in productivity and the knock-on effect on food security. PHOTOS: ANERA

18 OFID QUARTERLY JULY 2016 OFID IN THE FIELD

Ahmad’s story Livestock farming, another economic mainstay of the region, is also affected, due to the high cost of fodder. Raising cows, chickens, and sheep has become an expensive business, pushing up the price of meat and dairy products and cutting profit margins on non-food products such as wool. For some years now, the Palestinian Water Authority has been exploiting non-convention- al sources of water, such as treated wastewater and desalination, among others. One example can be found in the Governorate of Jenin, home to 281,000 people and the highest percentage of cultivated land in the Palestinian territory. Ahmad Fayyad’s land in the northern West Bank was once arid and Aiding a population of farmers uncultivated, but now it’s coming to life. A thin carpet of luscious green It is in Jenin that ANERA has been supporting alfalfa has brought a ray of hope to Ahmad and his family of 13, which the water authority’s strategy through the proj- relies on its 500 sheep for milk and meat. ect “Water Reuse and Food Security in The West Ahmad learned animal rearing from his father, but his involvement in Bank.” With the help of funding from OFID, farming is relatively recent. His family grows vegetables like spinach, ANERA has installed a 30km distribution system cabbage, cauliflower and cucumbers. to an existing treated wastewater plant. The system connects the Jenin plant to the Watering is a huge challenge for them, even with a nearby well. Often neighboring villages of Jalameh, Burqin, and they have had to buy expensive tankered water to irrigate their crops. Kafr Dan, whose inhabitants are highly depen- They also had to pay for pricey, imported fodder to feed their sheep. dent on agriculture for their livelihoods. Farm- ers in the area grow olives, citrus and stone fruits, Now that Ahmed is part of ANERA’s program, he doesn’t have to grapes, vegetables, herbs and wheat. But, with worry about buying water or fodder. limited access to water, yields are low, affecting “I recently planted around 66 dunums of alfalfa,” Ahmed says. “This the profitability of the sector and compromising crop will help us feed our entire herd all year without relying on im - food security. To satisfy irrigation needs and ensure a ported fodder or paying for irrigation water. It is of excellent quality, reliable supply of water, the project also con- and I am sure it will have a positive effect on our animal rearing structed 12 reservoirs, each with a capacity of business for years to come.” 600 cubic meters. These reservoirs and irrigation Courtesy of ANERA systems enable farmers to grow crops all year round for human consumption and to feed their livestock. Already, more than 1,000 farmers have A key component of the project has been a been able to increase production as a direct re- capacity-building program for farmers to ensure sult of the project. They are also enjoying high- the correct use and sustainability of the new er incomes. An additional 12,000 villagers are system. This will go a long way to safeguarding benefiting indirectly thanks to improved access the longevity of the infrastructure and a more to lower-cost, locally grown fodder and other prosperous, hunger-free and healthy future for produce. these Palestinian communities. N

OFID QUARTERLY JULY 2016 19 OFID IN THE FIELD

El Salvador: Promising a square meal for all

Despite its many vulnerabilities, the Central American nation of El Salvador is determined to fight rural poverty and hunger. OFID is standing shoulder to shoulder with the government and its development partners to help make this dream a reality. by Damelys Delgado

fter being absent from El Salvador for The most recent national development plan—for more than 25 years, OFID recently the period 2015–2019—was launched under the A joined IFAD and the Ministry of Agri- motto “El Salvador: productive, educated and culture and Livestock to co-finance the project safe.” It gives special importance to increasing ‘Rural Dawn,’ a wide-reaching initiative that productivity in the agriculture sector, providing seeks to bolster food security and improve living support to family farming and strengthening conditions among the rural poor. It aims to cooperatives. achieve its goals by engaging small-scale farmers According to Rómulo Martínez, OFID coun- in the supply chain of key crops such as coffee, try officer for El Salvador, OFID’s contribution pulses, vegetables and fruits. to “Rural Dawn” has focused on crucial activi- In recent years, the Salvadoran government ties that will help guarantee food production in has implemented several plans to tackle rural what are relatively adverse climate conditions. poverty, all with two main lines of action in “Besides irrigation and agricultural equipment, common: foster food production to guarantee key investments financed by OFID include the minimum nutritional levels across the country, acquisition of soil protection crops and the re- and prioritize rural development in the most forestation of degraded land to improve harvest- deprived regions. ing,” he told the Quarterly. The latest indicators provided by the UN Food and Agriculture Organization (FAO) esti- mate that 13.5 percent of the population of An uphill struggle El Salvador suffers from malnutrition, while For years, El Salvador, the smallest and most over 19 percent of children below the age of five densely populated country of the American suffer from chronic malnutrition. continent, has been in the spotlight for unwel-

20 OFID QUARTERLY JULY 2016 OFID IN THE FIELD

PHOTO: IFAD/CARLA FRANCESCUTTI

Groups of young producers, like these tomato farmers, come reasons. Its 12 year-long civil war claimed to predict a rise in temperature that will reduce are key targets under more than 75,000 lives and triggered a massive the country’s yields of main crops by 30 per - exodus of Salvadorans to the USA and other cent in 2050. El Salavador’s Rural neighboring nations. According to the same source, the agricul- Dawn initiative. Even now, with the war behind it, the coun- ture sector is dominated by large-scale commer- try continues to face severe social problems, cial farmers who own almost three-quarters of including a high crime rate and a hugely un- the arable land. Smallholders, while vastly equal distribution of wealth. Out of a total pop- larger in number, share the remaining, signifi- ulation of just over six million, the joint fortune cantly smaller portion, which leaves little scope of 160 Salvadorian millionaires was estimated for a fair and competitive market. With such at US$21bn in 2015, which is equivalent to constraints on productivity, poverty is especial- 87 percent of the national GDP. ly severe among the rural population, which The same year, remittances sent by some comprises 37 percent of the total. 2.7 million Salvadorans living abroad contribut- This is the situation that El Salvador is ed to 17 percent of GDP, compared to a share of working to turn around through initiatives like just over 11 percent provided by the agriculture ‘Rural Dawn.’ By consolidating micro and small sector. businesses in eight of the country’s fourteen Nature is not a friend either, with hazards departments, the project is delivering substan- such as earthquakes, volcanic activity, tial benefits to rural communities. For the more droughts and floods constantly holding back than 40,000 agricultural families that are ben- progress. This vulnerability, which is aggravat- efiting from the project, the hope to have a de- ed by environmental degradation, has led the cent meal on a regular basis is slowly but surely Intergovernmental Panel on Climate Change becoming a reality. N

OFID QUARTERLY JULY 2016 21 OFID IN THE FIELD PHOTO: GALLO IMAGES – NEIL OVERY/GETTY IMAGES

Revitalizing rural communities in Africa

Supported by a consortium of investors including OFID, the innovative African Agriculture Fund offers much-needed investment solutions for agribusinesses in Africa, with a positive impact on food security. by Fatma Elshhati

22 OFID QUARTERLY JULY 2016 OFID IN THE FIELD

espite hosting over 60 percent of the for the agribusiness Feronia, whose plantations D world’s arable land, Africa has strug- deteriorated during the civil war. With support gled to attract significant investment from AAF, Feronia restored its operations to full in its agricultural sector, leaving many countries capacity and helped the country reduce its reli- dependent on imported food. ance on palm oil imports. In 2009, several development finance in- Feronia, which currently employs over stitutions, including OFID, the African Devel- 3,500 people, has invested heavily in its employ- opment Bank, Proparco and FMO, recognized ees. The company has addressed the significant the pressing need for finance for Africa’s agri - shortage of skills in DR Congo by offering train- business sector. Together, they pooled resources ing and qualifications. It has also financed the to support the African Agriculture Fund (AAF)— With backing refurbishing of over 3,000 employee housing one of the first of its kind—to efficiently direct from AAF, companies private funding into African agribusiness and units destroyed during the civil war. have been able to Over 85,000 people living around the infrastructure. strengthen their “The Fund plays a vital role by providing the plantations are directly or indirectly dependent management, modernize much needed, long-term equity that enables on Feronia. The company has contributed to entrepreneurs to embark on the difficult task of the construction and maintenance of four hos - their operations and building sustainable agribusinesses,” explained pitals, 15 dispensary clinics and four health improve the skills of Adebayo Babalola, from OFID’s private sector centres. Moreover, it has supported 92 schools their employees. team. “With specialized local and sector knowl- and contributed to the building of 2,800km of edge, AAF has the expertise to invest in, add roads. value to, and monitor the agribusinesses that In 2011, AAF began supporting the expan- sustain food production and security.” sion of Goldtree, a commercial palm oil ex - The boost in investment, especially in rural tractor and producer in Sierra Leone. Goldtree, areas, has supported local vendors to expand which is located in one of the areas worst affect- and develop their agribusinesses and increase ed by the war that ended in 2002, has positive - productivity. With backing from AAF, compa- ly impacted the lives of over 50,000 people. nies have been able to strengthen their manage- The company has promoted sustainable ment, modernize their operations and improve environmental and social operations, which the skills of their employees. have improved local production and infrastruc- ture. It sources its raw materials from 6,400 in- Expanding business dependent out-growers, securing these farmers and investing in people with a fair price for their product. Moreover, The AAF has supported companies in their ver- through its technical assistance facility, Goldtree tical integration and in accessing new markets. has assisted with the upgrading of roads to pro- In Zambia and the Democratic Republic of vide improved access for the rural communities. Congo, AAF has supported Goldenlay, a busi - The AAF aims to continue supporting rural ness specialized in poultry, including the pro- livelihoods, and the expansion of agribusiness- duction and distribution of eggs. By promoting es into globally competitive entities. As well as stable and fair labor practices for rural workers, harvesting a total 1.3 million tonnes of food, the expansion of the business has had a positive AAF-funded projects have provided over 4,000 multiplier effect on the communities. families with housing and connected 250,000 Moreover, Goldenlay has reduced its reli- ance on imports and external suppliers along people to main towns and infrastructure the value chain. With this, Goldenlay has pro - through the upgrading of 3,500km of roads. vided a sense of security for many workers, in- Together, these investments are helping to cluding rural women and small businesses in tackle some of the many problems of poverty in informal sectors of the economy. Africa by improving livelihoods, boosting food In DR Congo, the Fund has helped finance security and promoting social and economic the replacement of a 100-year-old palm oil mill stability for rural communities. N

OFID QUARTERLY JULY 2016 23 Ministerial Council gathers to mark OFID’s 40th Anniversary

24 OFID QUARTERLY JULY 2016 MINISTERIAL COUNCIL HOLDS 37TH SESSION

Made up of the finance ministers and other high- level representatives of OFID Member Countries, the Ministerial Council is OFID’s supreme governing authority and meets once a year to review perfor- mance and set policy for the coming 12 months. This year’s meeting was held on June 2 at OFID’s headquarters in Vienna, Austria. by Audrey Haylins

OFID QUARTERLY JULY 2016 25 MINISTERIAL COUNCIL HOLDS 37TH SESSION

n addition to its usual order of business, the 2016 Award forms part of OFID’s 40th An- the 37th annual session of the Ministe- niversary dedication to highlighting the plight I rial Council brought together represen- of refugees. tatives from Member Countries to celebrate the Addressing the Council, Mr Benkhalfa, institution’s 40th year of operations. opened with a minute’s silence for the victims Before the main agenda got underway, of the recent earthquake in Member Country ministers gathered early in the morning with Ecuador. officials from the City of Vienna and other dig- Reflecting on OFID’s four decades at the nitaries for the unveiling of a specially commis- service of development, Benkhalfa noted the sioned sculpture, gifted by OFID to its host city institution’s purposeful evolution and its adher- as a gesture of gratitude for its four decades of ence to the principles of its establishment, in- hospitality and cooperation (see story, page 32). cluding that of South-South solidarity. Back at OFID HQ, the Council re-elected to The Chairman went on to review the key the chair the People’s Democratic Republic of global events of 2015, which will shape the fu- Algeria, represented by HE Abderrahmane ture of international development. Placing OFID Benkhalfa, Minister of Finance. The Republic of in this context, he highlighted the institution’s Ecuador was elected as vice-chair. preparedness for what lies ahead. OFID’s strate- The highlight of the meeting’s public ses- gic plan, he stated, was “both flexible and com- Ministerial Council sion was the presentation of the OFID Annual prehensive. It is aligned with the newly approved representatives gather Award for Development to Syrian refugee and Sustainable Development Goals (SDGs) and at for a formal photograph shipwreck survivor, Doaa Al Zamel (see story, the same time takes into consideration the pres- outside OFID’s main page 34). Ms Al Zamel’s selection as winner of ent economic realities.” conference room.

26 OFID QUARTERLY JULY 2016 MINISTERIAL COUNCIL HOLDS 37TH SESSION

Ministerial Council Chairman and Algerian Minister of Finance, Abderrahmane Benkhalfa (center), flanked by Abdul Wahab Al-Bader, Governing Board Chair- man (left) and Suleiman J Al-Herbish, OFID Director-General (right).

Operational review In the Council’s working session, Governing worked to bring both sides together,” he said, Board Chairman, Abdul Wahab Al-Bader of citing the recently launched Oil and Gas Indus- Kuwait reported on the work of the Board since try Energy Access Platform as a concrete out - the last meeting of the Council in July 2015. He come of these efforts. disclosed that over US$887m had been approved “With the launch of the EAP, we are proud in fresh lending for 51 projects distributed across to have implemented the call of our heads of the full range of financing mechanisms. state in its entirety,” Al-Herbish affirmed, refer- In his own statement to ministers, OFID ring to the mandate handed down to OFID at Director-General Suleiman J Al-Herbish de - the third OPEC Summit in Riyadh, Saudi Arabia, scribed OFID’s “remarkable journey” since its in November 2007. founding in January 1976. The institution, he The Director-General went on to report on said, could look back with pride on four decades the implementation of OFID’s Corporate Plan of operational success and financial growth. for the period 2016–2025 which has adopted as OFID’s greatest achievement, however, had been its focus the energy–water–food nexus with its transformation from an institution that fol- transportation as a fourth, enabling sector. lowed the lead of others to one that advocated He pointed out: “It is worth noting that an agenda for others to follow. OFID’s decision to base its Corporate Plan on an “Today, OFID is deeply involved in shaping integrated, holistic approach to development the international development agenda and we was envisioned prior to the approval of the SDGs are proud to be recognized as a leader by our in September 2015—a clear confirmation that peers,” stated Al-Herbish. we are operating ahead of the curve.” “Nowhere is our pioneering role more ap - Al-Herbish concluded his statement by parent than in the area of energy poverty thanking the Ministerial Council for its support eradication,” he added, referring to OFID’s to OFID’s communication strategy, which had instrumental role in positioning energy access seen the institution dramatically increase its in the 2030 Agenda for Sustainable Develop - visibility, most notably through its social media ment. channels. The Director-General told the Council that, Other matters during the session included: through the prominence gained by its advocacy consideration and approval of OFID’s financial efforts, OFID had become a platform for dia - statements and Annual Report for 2015 (see sto- logue among the different stakeholders engaged ry, page 39); and reports on the 20th Lending in the fight to eliminate energy poverty. Program and grant operations. “Using our links to both the development The next session of the Ministerial Council business and the energy industry, we have will be held in Vienna, Austria, on July 6, 2017.

OFID QUARTERLY JULY 2016 27 MINISTERIAL COUNCIL HOLDS 37TH SESSION

37th Session of the Ministerial Council

The People’s Democratic Republic of Algeria, represented by Minister of Finance HE Abderrahmane Benkhalfa, was elected to the Chair for a second consecutive year.

In addition to celebrating OFID’s four decades of accomplishment, the Council’s busy schedule included a review of the financial statements for 2015 and approval of the Annual Report for the same year. Ministers also considered reports relating to the 20th Lending Program and other operational matters.

28 OFID QUARTERLY JULY 2016 MINISTERIAL COUNCIL HOLDS 37TH SESSION

Mr Juan Francisco Viera Mr Askolani Alternate Governor of Ecuador to OFID Governor of Indonesia to OFID

HE Dr Ali Taieb Nia Mr Muwafaq Taha Ezzulddin Minister of Finance and Economic Affairs, IR Iran Alternate Governor of Iraq to OFID

OFID QUARTERLY JULY 2016 29 MINISTERIAL COUNCIL HOLDS 37TH SESSION

Mr Abdul Wahab Al-Bader Dr Ahmed Menesi Governor of Kuwait to OFID and Governor of Libya to OFID Chairman of the Governing Board

HE Dr Mahmoud Isa-Dutse Mr Bader Ahmed Al Qayed Governor of Nigeria to OFID Governor of Qatar to OFID

30 OFID QUARTERLY JULY 2016 MINISTERIAL COUNCIL HOLDS 37TH SESSION

37th Session of the Ministerial Council

HE Dr Ibrahim Al-Assaf Minister of Finance, Saudi Arabia

HE Younes Haji AlKhoury HE Rodolfo Medina del Rio Deputy Minister of Finance, United Arab Emirates Minister of People’s Power for Economy, Finance and Public Banking, Venezuela

OFID QUARTERLY JULY 2016 31 MINISTERIAL COUNCIL HOLDS 37TH SESSION Für Wien … a lasting ‘thank you’

As part of the institution’s 40th anniversary celebrations, OFID has presented a unique gift to the City of Vienna and the Republic of Austria to acknowledge their generous efforts in hosting the institution for the past four decades. by Reem Aljarbou

he gift, a specially commissioned mon- nizes that OFID’s work is valuable for global ument, was presented on June 2 on the development,” he stated. T sidelines of the Ministerial Council, in In designing the monument, OFID commis- the presence of Ministerial Council members, sioned Iraqi artist Suhail Al-Hindawi, a graduate OFID Governors and Alternate Governors, am - in Fine Arts, Sculpture from Baghdad University, bassadors and representatives from the Austrian and a lecturer at the Fine Arts Institute in Bagh- Foreign Ministry. dad. Al-Hindawi was a member of the Iraqi Arts The monument, which is located in a small Association as well as a member of the Interna- public park in front of the Vienna International tional Union of Arts. He has received numerous Center on Wagramerstrasse, was unveiled by awards and recognitions, such as the Iraqi Olym- OFID Director-General Suleiman J Al-Herbish pic Organization statue, and has various sculp- and Dr Andreas Mailath-Pokorny, Municipal tures and monuments on display worldwide. Councillor for Culture, Science and Sports of the Al-Hindawi used the ancient Sumer civili- zation as the inspiration for the monument. The City of Vienna. Sumerian civilization was the first ancient urban Speaking at the inauguration, Al-Herbish civilization in the historical region of southern stated: “Today is a special and glorious day; an Mesopotamia, modern-day southern Iraq, opportunity to recognize the hospitality of the during the Chalcolithic and Early Bronze ages, City of Vienna in providing a stable, welcoming and arguably the first civilization in the world. environment for our institution to carry out its The Sumerian written history reaches back to noble mission.” the 27th century BC and before. Al-Herbish went on to explain the thinking behind the monument, a 5.2m high bronze The development link sculpture on a granite base. “We tried to connect The monument has a strong symbolic develop- the monument with OFID’s vision and mission ment link with OFID’s vision and mission. by representing the origins and evolution of When the Sumerians lost their separate identity, development and our focus on the Sustainable they bequeathed their culture to their succes- Developmental Goals (SDGs),” he said. sors, and left the world a number of technolog- In his own speech, Dr Mailath-Pokorny ical and cultural contributions, including the spoke about current global affairs and how the first wheeled vehicles and potter’s wheels; the monument symbolized the need for continued first system of writing; the first codes of law; and unity and development efforts. “Vienna thanks the first city-states. Several original Sumerian OFID for this generous gift; we are proud and scripts and drawings are placed on the Monu- happy that the City of Vienna can host both ment to show the original developmental efforts OFID and OPEC. During these times, one recog- by humankind.

32 OFID QUARTERLY JULY 2016 The 5m-high bronze sculpture depicts the origins and evolution of development dating back to the proto-literate period of Sumerian writing around 3300 to 3000 BC.

The monument was The Sumerian language is one of the earliest as with written language the Sumerians were unveiled by OFID known written languages. The “proto-literate” able to document events. The monument uses period of Sumerian writing spans from around Cuneiform and various symbolic representa- Director-General 3300 to 3000 BC. In its initial phases, writing tions of development in its design, and links Suleiman J Al-Herbish was pictographic, with icons and images derived these early developmental efforts of humankind and Dr Andreas from everyday life, including people and shelter, to the current SDGs, which are also placed on Mailath-Pokorny, livestock and agriculture, tools, weaponry and the Monument. Municipal Councillor machinery. OFID worked closely with Professor Mi - The Sumerians were the first to display chael Jursa, head of the Institute for Oriental for Culture, Science their ingenuity, using icons and symbols as pic- Studies at the University of Vienna. He is a pro- and Sports of the City torial representations of words. In what came to fessor of Assyriology and coordinator of the of Vienna. be known as Cuneiform script, they illustrated “Nationalen Forschungsnetzwerks Imperium and essential objects and meanings with stylus Officium.” There are a few hundred individuals strokes on a clay tablet. globally who specialize in either Sumerian cul- The invention of written language around ture, language, archaeology or history. OFID is 3200 BC was a key turning point for all man- honored to have worked on this project with kind. This was the beginning of modern history, Austrian expert Professor Jursa. N

OFID QUARTERLY JULY 2016 33 At the presentation ceremony (from left): 2016 Annual Award winner Doaa Al Zamel; Ministerial Council Chairman, Abderrahmane Benkhalfa; and OFID Director-General Suleiman J Al-Herbish. A hero’s journey: Annual Award pays tribute to refugee shipwreck survivor

The 2016 OFID Annual Award for develop- ment has gone to 20 year-old Syrian refugee he Award, which comes with a T US$100,000 prize, was announced on Doaa Al Zamel, a survivor of the September the sidelines of the 37th session of OFID’s Ministerial Council. It was presented 2014 Mediterranean shipwreck tragedy that jointly by Council Chairman, Abderrahmane Benkhalfa, Algerian Minister of Finance; Gov- claimed 500 lives. erning Board Chairman, Abdul Wahab Al-Bader by Fatma Elshhati of Kuwait; and Director-General, Suleiman J Al-Herbish. In a citation, Al-Herbish paid tribute to Doaa: “As we go through this tough period in history, one regains hope on witnessing some- one with your youth, aspirations and insistence strive for a better future.”

34 OFID QUARTERLY JULY 2016 MINISTERIAL COUNCIL HOLDS 37TH SESSION

Doaa’s selection as winner of the 2016 Award Facing few legal alternatives, people seeking forms part of OFID’s 40th Anniversary dedica- international protection are continuing to risk tion to highlighting the plight of refugees. their lives on these “death” journeys. In the first During her four-day ordeal at sea, Doaa half of 2016 alone, the UNHCR estimated that managed to stay afloat on a child’s water ring. over 2,510 people lost their lives on the Medi- She saw her fiancé perish along with almost terranean, compared to 1,855 in the same period 500 others and was entrusted to care for two last year. The agency has also reported an alarm- infant girls by their drowning relatives. She ing increase in the arrivals of unaccompanied and the babies were on the edge of death when children to Europe. a merchant vessel rescued them. Thanks to “It is our responsibility to lend support Doaa’s courage and determination, 18 month- immediately to those attempting the journey before it’s too late,” Doaa added. old Masa survived. Thanking OFID for the award, Doaa said The Award, which honors the young Syr- that she would never get over the shock and the ian’s bravery and her determination to draw loss of what happened but that she was happy greater attention to the refugee crisis by shar - to have saved a small girl. She added: “I am ing her story, will be directed towards the es - grateful to Sweden for offering me and my fam- tablishment of a fund on Doaa’s behalf to assist ily safety and a new start. The OFID Award will similar victims and raise further awareness. help me and other refugee shipwreck survivors Doaa and her family originally fled the to study and heal. I dedicate it to all the men, war in Syria in 2012 and found refuge in Egypt. women and children who have lost their lives They have since been reunited in Sweden on the Mediterranean Sea.” thanks to the resettlement program of the The OFID Annual Award was instituted in United Nations High Commissioner for Refu - 2006. Past winners of the award include: the gees (UNHCR). She and her fiancé, like so many Children’s Cancer Hospital Egypt, Kenya’s Ka- other refugees, entrusted their lives to people kenya Center for Excellence; Malala Yousafzai smugglers to seek a better life in Europe. of Pakistan; Dr Mazen Al-Hajri, renowned ENT Speaking to the Quarterly, Doaa stressed surgeon and philanthropist, Professor Muham- the need to promote legal ways of resettlement mad Yunus; and, Bartolina Sisa National Con- and reunification so that desperate people no federation of Peasant Indigenous Native Wom- longer had to resort to smugglers or illegal im - en of Bolivia, among other distinguished migration. personalities and institutions. N

Thanking OFID for the Award, Ms Al Zamel said that it would help her and other refugee shipwreck survivors to study and heal.

OFID QUARTERLY JULY 2016 35 MINISTERIAL COUNCIL HOLDS 37TH SESSION PHOTO: MICHAEL JUNG/SHUTTERSTOCK.COM MICHAEL PHOTO: OFID announces 2016 Scholars The OFID Scholarship Award is presented yearly to outstanding students from the developing world, who are striving to become agents of change in their home countries. By Lilian Al-Bazaz

his year, almost 12,000 young people Studies, and the London School of Economics applied for the opportunity to pursue and Political Science, to name a few. T graduate studies at an overseas academ- Many, if not all, of these young leaders have ic institution under the auspices of an OFID since taken their new knowledge back home, Scholarship. where they are already making a contribution Since the program’s inception in 2007, 31 to the development of their countries or com- OFID Scholars have successfully completed their munities. As OFID Scholars and now ambassa- Master’s in a development-related discipline at dors, they are helping to further OFID’s vision some of the leading higher education institutes of sustainable development centered on human in the world, including the universities of Har- capacity building. vard, Johns Hopkins, and Cambridge, as well as As in previous years, the applicant pool of the London School of Oriental and African 2015 was of an extraordinarily high quality,

36 OFID QUARTERLY JULY 2016 MINISTERIAL COUNCIL HOLDS 37TH SESSION

making the selection process extremely diffi- dedicated to making an impact on the develop- cult. While evaluating the potential scholars, ment of their country upon finishing their emphasis was given to the envisaged field of studies. study and the institutions of higher education For the first time this year, and in line with where they have been accepted. Weight was also OFID’s 40th anniversary dedication to high- given to the social background of the applicants lighting the plight of refugees, five additional to ensure that the scholarships were awarded to scholarships were awarded in collaboration with students with fewer opportunities than others. an external organization, Jusoor, which is ded- From this rigorous selection process, five icated to improving opportunities for Syrian outstanding candidates were chosen, each one youth. N

Meet the Scholars

Noon Altijani Osman Abbakar, aged of women. Simultaneously she partnerships and global collab- 23,from Sudan will pursue an MSc in Glob- saw strength, potential and orations are vital to improve al Health Sciences at Oxford University in hope. reproductive health not only in the United Kingdom. She is currently Noon believes that a mere Sudan, but worldwide,” she working as a physician at the Ministry of clinical approach would not be said. Health in Khartoum where she works with enough to fight the high rates After completing her stud- girls and women on reproductive health of maternal mortality preva- ies, Noon is looking forward to issues. lent across Sudan. “I am certain returning to Sudan, where she Through her work, where she saw that a multidimensional ap - wants to revolutionize health- women being victimized for their repro- proach that comprises women’s care and build resilient health- ductive roles, Noon gained a deeper under- education and empowerment and calls for care systems and policies by employing standing of the social and personal plight community participation, intersectional research and evidence-based approaches. PHOTOS: COURTESY OF NOON ALTIJANI OSMAN ABBAKAR/COLLINS KASAWULI/RAHBAR OSMAN AJWANG/BAKER ACHEAMPONG/BERYL ANSARI ALTIJANI NOON OF COURTESY PHOTOS:

Twenty-six year-old Collins human and agricultural needs, pursue this [Master’s] program together Acheampong from Ghana while taking into consideration with people from different parts of the will study for an MSc in climatic and environmental world to learn from their culture and ex- Geo-information Science and demands. perience,” he said. Earth Observation for Water Currently, Collins is vol- On completing his studies, Collins’ Resources and Environmental unteering in three communi- wish is to return to Ghana and continue Management at the University ty-based projects that aim to his research in the form of a PhD. His ulti- of Twente in the Netherlands. improve people’s lives through mate aim is to become a university profes- Collins aspires to gaining the provision of sustainable sor and researcher in the field of water the knowledge and skills need- water and sanitation infra - resources engineering and management. ed to design innovative water technologies structure. “This work is very dear and that are cost effective and responsive to important to me, which is why I strive to

Twenty-seven year-old Kenyan, Beryl In her current job, Beryl in energy planning, business Ajwang, has been accepted at the Yale has been working on energy modelling, and climate change School of Environment and Forestry in the transformation projects, in- finance to help developing USA to pursue an MSc in Environmental cluding a nationwide initiative countries build low-carbon Management–Energy and Environment. with the ministry of energy to economies. “I believe my time at Yale will equip me with the Against her culture’s common belief that give rural and remote commu- right skills, provide me with a educating boys over girls should be given nities access to modern tech- world-class platform to test priority—and with the unstinting support nologies for cooking, heating ideas in energy access, and cat- of her mother—Beryl is proud to be the and lighting. apult me to be a credible voice first female engineer in her rural village in Through her graduate on energy issues in Africa,” she said. western Kenya. studies, Beryl hopes to develop expertise

OFID QUARTERLY JULY 2016 37 MINISTERIAL COUNCIL HOLDS 37TH SESSION

Baker Kasawuli, age 30, process that attempts to cre - ensure better efficiency and value for mon- from Uganda will pursue a atively and sustainably address ey in both the application and utilization Master of Arts in Sustainable public sector malfunctions. of public sector resources,” he said. International Development at Baker is confident that his Baker hopes that by utilizing his Brandeis University’s Heller chosen course of study will background in finance he can engage and School for Social Policy and enhance his understanding of exchange ideas during his studies for a Management in the USA. the structural factors that cause richer understanding on the interconnec- Personally affected by his development to fail, and the tivities of finance and public policy. Fur- country’s poorly functioning capacity to analyze and design ther, he wishes to get a deeper knowledge public health sector, which creative solutions. on how other countries have been able to claimed his new-born’s and wife’s lives, “I hope to deepen my understanding improve, especially the health sector, for Baker has a strong desire to be part of a of the available mechanisms that would poor and vulnerable communities.

Thirty year-old Rahbar Ansari from feel that I am part of a nation tion by organizing the knowl- Nepal will pursue a Master’s in Public Pol- where the word challenge lies edge and practical experience icy at the Central European University in in every aspect of life, from gained since obtaining his Budapest, Hungary, where he hopes to getting a good education to undergraduate degree and create greater awareness about the human bringing one’s ideas to frui - combining them with the for- condition prevailing in underdeveloped tion,” he said. mal education he will receive countries. Rahbar strongly believes in Budapest. As the CEO of Gandak Hospital, a that the key to progress lies in Rahbar’s long-term aim is 100-bed hospital in the city of Birgunj the soundness of the policies to pursue a political career in that he founded six years ago, Rahbar has guiding public institutions and Nepal as a policy maker and become acutely aware of the depth of pov- that his country needs to build capacity in driver of the national system. erty among Nepal’s rural population. “I this area. His goal is to be part of this solu-

In solidarity with Syrian women

Jusoor is an NGO of Syrian expatriates for Higher Education in Crisis. Key par tners are Jusoor, IIE, in the USA, Canada and the UK, which the Illinois Institute of Technology, Education USA, and aims at suppor ting Syria’s development Monmouth College. and helping Syrian youth to have access The five scholars awarded in cooperation with Jusoor are to better opportunities. highly motivated individuals, who already have shown their Five of the 2016 OFID Scholars are commitment to the community. being sponsored through Jusoor’s “100 Zelfa Hamadieh will pursue a Master’s in Environmental Syrian Woman, 10,000 Syrian Lives” Engineering at New York University. program which explicitly targets young Syrian women with the proven poten - Alaa Marrawi is anticipating completing her Master’s in tial to serve as global leaders. The program operates under Urban Planning and has been accepted at the New York the motto “When you educate a woman, you educate a Institute of Technology. nation.” Marianna al Tabbaa is grateful to be able to begin her Since it began in 2012, the program, has enabled more than Master’s studies with the Politics Program offered at New 150 young women to continue their studies at colleges and York University. universities outside Syria. Research shows that young Syrian Lama Ranjous has been accepted at the Middlebury women are approximately three times less likely to access Institute of International Studies and is excited to do her higher education in exile than their male counterparts. Master’s in Conflict Studies there. Led by Jusoor, the program is administered as part of the Hannen Almohammad will pursue a Master’s in Archi- institute for International Education (IIE)-led Syria Consortium tecture at Boston’s Northeastern University in the USA.

38 OFID QUARTERLY JULY 2016 MINISTERIAL COUNCIL HOLDS 37TH SESSION

Annual Report 2015: Gearing up for a new development agenda OFID’s cumulative contribution to global development topped the US$19bn mark in 2015, a year that saw fresh approvals of US$1,175m and disbursements of US$1,057m. by Audrey Haylins

hese and other figures are published in ity of the loans, which were all delivered through T OFID’s 2015 Annual Report, which was the public sector window, went to the roads released on June 2 following its adop- sub-sector. Africa and Latin America shared the tion by the Ministerial Council, the institution’s bulk of the financing. On completion, the new highest governing body. The Report details infrastructure is expected to open up isolated OFID’s performance during 2015, highlighting areas and have a positive knock-on effect on the its activities by sector, geographical region and main nexus areas. financial mechanism. Behind transportation came the financial In his Foreword to the Report, Direc - sector with a substantial US$273m, divided be- tor-General, Suleiman J Al-Herbish cites the tween support to cross border trade and to the inclusion of energy access in the new Sustainable capital expenditure and working capital needs Development Goals as the high point of 2015 for of MSMEs. OFID. Energy projects accounted for US$213m of “Having lobbied vigorously for many years 2015 commitments. Benefiting 22 countries, to draw global attention to the issue of energy these resources will help finance a wide variety poverty, OFID is pleased and proud that these of solutions, from mini-grids to power plants The 2015 Annual Report efforts have finally borne fruit,” he states. and rural electrification to an oil pipeline. With Referring to the challenges posed by the a maiden operation in Guinnea-Bissau, OFID’s is available in English, 2030 development agenda, Al-Herbish notes that energy footprint now extends to a total of 86 Arabic, French and OFID is well prepared thanks to its extensive partner countries. Spanish and on USB program of capacity-building and systems mod- With an allocation of US$120m—mostly in in all four languages, as ernization. the form of trade financing—the agriculture well as in PDF format He notes: “By the end of 2015, all of these sector attracted a 10 percent share of total ap - enhancements were in place, putting us in a provals for the year, all but a fraction going to for downloading from position of considerable strength for implement- Africa. the OFID website ing both the SDGs and our own strategic plan.” Water and sanitation initiatives secured www.ofid.org. some US$73m in new financing, while other Focus areas sectors to receive support were multisectoral (US$70m), education (US$69m), and health The US$1,175m in new funding approved in 2015 (US$39m). was dominated by support to the strategic ener- gy-water-food nexus, supported by the transpor- tation sector. Together, these four areas attract- Regional operations ed more than US$726m, which is equal to more In keeping with its mandate to prioritize the than 60 percent of the year’s aggregate commit- low-income nations, 33 African countries bene- ments across all financing mechanisms. fited from OFID financing in 2015. Collectively, On its own, the transportation sector drew these nations received US$575m, of which the bulk of approvals, securing a total US$316m— around two-thirds (US$387m) was delivered in an increase of 50 percent over 2014. The major- concessional public sector lending. Of special E

OFID QUARTERLY JULY 2016 39 MINISTERIAL COUNCIL HOLDS 37TH SESSION

F note was the recommencement of cooperation In Asia, US$347m was approved for operations with Liberia after a break of some 34 years. in 22 countries, chiefly in support of the finan- The largest share of the total in Africa cial sector, which received US$197m. In terms of (US$151m or 26 percent) went to the energy sec- the financing mechanisms deployed, around tor for a wide range of initiatives, both large and one-half of the total (US$177m) was provided in small, and utilizing traditional as well as renew- support of cross-border trade, while US$92m and able technologies. Transport was also high on US$70m were approved through the public and the agenda, securing some US$133m or 23 per- private sector windows respectively. Grant fund- cent of approvals to the continent. Around ing accounted for just over US$7m, with Pales- US$100m was channeled to the agriculture tine the biggest beneficiary. sector to boost food and nutrition security. Some 19 percent (or US$229m) of total glob- al commitments for the year was distributed to 14 countries in the Latin America and Caribbean region. By far the largest portion (US$193m or 84 percent) went to public sector operations, chief- Approvals in 2015 by sector* ly for the construction and upgrading of road ($m) infrastructure. 316.1 Transport 273.0 Financial Financial mechanisms 213.3 Energy The public sector maintained its position as the 120.4 Agriculture primary channel for OFID’s operations. Approv- 72.8 Water & Sanitation als of some US$671m accounted for 57 percent of 70.4 Multisector total commitments for the year and supported 69.4 Education 34 projects in 30 countries. 38.8 Health An aggregate US$279m was committed 0.8 Emergency through the Trade Finance Facility, the bulk of it (US$158m) channeled via financial intermediar- ies to support the import and export funding *Total needs of SMEs, including in Guatemala, a country new to the TFF. The remaining US$121m com- approvals: prised five transactions drawn from an existing $1,175.1m global trade participation scheme with the Inter- national Islamic Trade Finance Corporation, among them a first TFF operation in Cameroon. Disbursements in 2015 by mechanism** Private sector approvals comprised 12 ($m) transactions with a combined value of US$207m in support of operations primarily in the finan- 435.2 Public Sector cial (US$115m) and energy (US$40m) sectors. An Lending important highlight of the year was the facility’s 382.8 Trade Finance maiden equity participation in funds directly Facility targeting the highly developmental health and 214.9 Private Sector education sectors. Facility Through OFID’s various grant programs an 24.0 Grant Assistance aggregate US$18m was approved in favour of 52 operations in some of the most disadvantaged countries of the world. In keeping with the in- stitution’s strategic focus, more than two-thirds **Total ­ (69 percent) of these resources was concentrated disbursements: on the energy, health and education sectors. $1,056.8m Also noteworthy in 2015 was the successful com- pletion of 56 projects financed with US$19m of previously approved grant funding and benefit- ing 46 countries. N

40 OFID QUARTERLY JULY 2016 NEWSROUND

Exploring non-conventional ways Dr Ismahane Elouafi, Director-General of the International Center for Biosaline Agriculture (ICBA), and one of three dis- cussants, propagated the idea of exploring non-conventional ways of food produc- tion, including the need to trial new food. She gave the example of quinoa, a pseudo grain native to the Andes with high protein and high micronutrient con- tent, which could be grown in the MENA From left: Parvindar Singh, Managing Director, CFC; Ismahane Elouafi, Director-General, ICBA; Li Yong, region due to its salt-tolerant nature. She Director-General, UNIDO; Amira Gornass, Chair of the Committee on World Food Security. also suggested the use of non-traditional sources of water—beyond fresh surface or ground water—such as sea water for irriga- OFID hosts high-level tion and treated waste water from urban sources to grow vegetables. food security seminar The second discussant, Parvindar Singh, Managing Director of the Common A one-day high-level seminar on food security with a Fund for Commodities, stressed the im- portance of an effective supply chain from focus on the Middle East and Africa region, organized field to fork as key to sustainable food se - curity. This would include improved water and hosted by OFID at its headquarters in Vienna, management as well as efficient use of discussed the key role of partnership and cooperation energy and soil. He also advocated strongly in favor of among stakeholders as well of innovative methods to private sector investment, which he said improve the quality and availability of food. was essential for a sustainable agriculture system. Private investors would find the By Arya Gunawan Usis sector more attractive if certain measures were put in place, he argued. These could eld under the theme “The Long- unintended consequences across the sec- include policy incentives, the establish- term Challenges of Food Securi- tors,” said Al-Herbish, adding that partner- ment of savings and credit institutions for H ty” the March 30 seminar brought ships and cooperation would be crucial in farmers, and risk management for farmers together more than 40 participants, and efforts to address the challenges of food and traders. was chaired by Li Yong, Director-General security. As the third discussant, Amira Gor- of the United Nations Industrial Develop- The main speaker was Mahmoud nass, Chairperson of the Committee on ment Organization (UNIDO). Ambassadors Solh, Director-General of the Internation- World Food Security, spoke of the value of from OFID Member Countries, Arab States, al Center for Agricultural Research in the involving all stakeholders in major policy and other partner countries, as well as Dry Areas (ICARDA), who insisted that debates and formulation. Actors should heads of Vienna-based international orga- opportunities existed to create a sustain- include not only governments, but also the nizations were among the participants. able food system and tackle hunger, de - private sector, NGOs and research institu- The seminar was opened by OFID spite the many challenges, including tions. She also highlighted the 30–40 Director-General Suleiman J Al-Herbish. global population growth. percent rate of food losses and waste in the In his statement he touched upon the im- Doing so, he said, would require a supply chain. This, she stressed, had to be portance, as well as the complex interrela- multi-dimensional, multi-disciplinary seriously reduced. tion, of energy, water and food for human approach, including—among others—bet- The seminar concluded with partici- wellbeing, poverty reduction and food ter technologies such as crop improve - pants calling for better cooperation and security. ment, water and land management, and stronger partnership, including with the “Inadequate attention to these inter- the development of integrated livestock/ private sector, to end poverty and hunger actions often results in policies that create rangeland/crop production in marginal as mandated by the 2030 Development risks, inefficient resource utilization, and lands. Agenda. N

OFID QUARTERLY JULY 2016 41 PHOTO: OFID/MUSAB ALOMAR PHOTO:

OFID’s Jaafar Al-Mahdi spoke on behalf of the Coordination Group at the ADP launch in Jordan.

“The ADP is an ongoing initiative that will OFID and UNDP launch enhance our understanding of the Arab World. Our overall vision for the ADP is to Arab Development Portal go beyond providing information that is already in the public domain. It seeks to gather information, identify the knowl- Featuring an extensive database of development-related edge-gaps, and work toward filling them,” information on the Arab region, the Arab Development said Dr Al-Mahdi, a senior officer in OFID’s Public Sector Operations department. Portal (ADP) represents an innovative new tool for The portal is available in Arabic and planners and policy-makers and other stakeholders English, and offers access to a multi-source database as well as advanced tools for data seeking to make a difference in Arab countries. browsing, extraction and visualization. It covers 11 key development topics, includ- by Arya Gunawan Usis ing, among others, demography; educa- tion; labor and employment; trade; water he ADP—an initiative of OFID, the ADP represented a valuable instrument and food security—all as they relate to the the Arab Coordination Group for delivering on the challenges of the Arab World T and the Islamic Development 2030 Global Agenda for Sustainable Devel- Altogether, the ADP features more Bank in collaboration with the United opment. than 4,400 indicators, extracted from Nations Development Program (UNDP)— “Supporting evidence-based poli- national statistical offices, and 400 addi- was launched at a special event in Amman, cy-making by improving access to data tional indicators gathered from databases Jordan, on April 25. and building capacities for monitoring of international organizations. The portal The initiative was driven by the lim- and evaluating are pivotal to the success also serves as a resource depository for over ited access to reliable data, information of the new agenda,” she stated. 1,000 publications produced by interna- The launch was attended by about 80 and knowledge resources on development tional and local organizations, public in- participants representing national statis- stitutions and universities. issues in the Arab World. By addressing tics offices of Arab countries, development The launch ceremony was followed this gap, the ADP opens up a new oppor- institutions, academics, civil society orga- by a two-day regional workshop address- tunity for people to improve their individ- nizations, and the media. ing six thematic topics (poverty, labor and ual and collective knowledge of the region, In a statement delivered on behalf employment, education, trade, energy, thereby enabling them to contribute to of Arab Coordination Group, OFID’s Dr water and food security) that cross-cut sustainable development. Jaafar Al-Mahdi, shared the history of the with ADP’s thematic pages and the 2030 In her opening remarks at the launch ADP since the idea first emerged in early Agenda for Sustainable Development. ceremony, Sima Bahous, UN Assistant 2006. He described the challenges faced During the workshop, thematic ex- Secretary-General and UNDP Assistant during the inception and development perts explained the functionalities, tools Administrator and Regional Director of phases, and highlighted the accomplish- and services provided by the ADP and the Regional Bureau for Arab States, said ments so far. guided participants on how to use the

42 OFID QUARTERLY JULY 2016 NEWSROUND

portal in their work. Among the valuable feedback was the need to explore partner-

ships with start-ups companies, universi- PHOTO: ICEP ties, and NGOs, and to build linkages with research centers and youth organizations. In January, OFID and UNDP signed a new three-year partnership agreement that will oversee the ongoing evolution of the portal until 2018. Speaking at that time, OFID Direc- tor-General Suleiman J Al-Herbish said that the realization of the ADP would have been impossible without the close collab- oration of all partners. “The portal is a clear example of how joint initiatives can OFID Director-General Al-Herbish (center right) with ICTP Director Fernando Quevedo (center left) harness the power of data with low cost flanked by the 15 PhD fellows. information technologies to scale-up de- velopment impact,” he stated. N Visit the portal: OFID-ICTP Postgraduate http://arabdevelopmentportal.com Fellowship Program

OFID and the Abdus Salam International Center for Theoretical Physics (ICTP) have launched a new partnership to support research opportunities for students from developing countries. by Justine Würtz

he OFID Postgraduate Fellow- “The high-quality training and resources ship Program was formally an- ICTP provides, thanks to the generous fi - T nounced in a special ceremony nancial assistance from OFID, thus helps at ICTP Headquarters in Trieste, Italy, on fuel the development of local scientific June 8. Forming part of ICTP’s Sandwich research communities, as well as stimulat- Training Educational Program (STEP), ing new technological approaches to local the Fellowship supports 15 students in problems,” he explained. developing countries, who are carrying In his own remarks, OFID Direc - out research and training toward their tor-General Suleiman Jasir Al-Herbish PhDs. expressed OFID’s appreciation for ICTP’s Under the program, the students re- valuable contribution to the advancement ceive financial support to spend up to six of scientific expertise in the developing months per year for three years at ICTP or world, in particular in the areas of physics collaborating institutes. Fellows work on and mathematics. their PhD theses with their advisors at “We are proud to know that ICTP has their home institutes and co-advisors at been able to do that thanks in part to a the hosting institutes. Their PhD is award- fruitful partnership with OFID which ed at their home institutes. dates back to 1980,” he said, adding that In welcoming remarks, ICTP Director the Fellowship Program supported OFID’s Fernando Quevedo highlighted the wider vision of sustainable development centred benefits of STEP, which he said not only on human capacity building. supported students’ individual education The OFID Fellowships have been but also the spread of knowledge as they awarded to postgraduate students from 14 regularly travel back to their home insti- developing countries in Africa, Asia and tutions. the Caribbean. E

OFID QUARTERLY JULY 2016 43 NEWSROUND

F The Program will enable these talented the way for profitable scientific partner- Cultural Organization (UNESCO) Catego- young scientists to access cutting-edge ships. In turn, this may positively impact ry 1 institute, ICTP has hosted more than knowledge in their fields of research, the rate of emigration of professionals 130,000 scientists from 188 developing which range from Renewable Energy to from developing countries and help build countries. Biosphere-Atmosphere Interactions and scientific communities around the world. Leading universities, academic de- Climate Modelling to Environmental ICTP is a scientific research and de- partments, research centers and ministries Physics, among others. velopment institute established in 1964 to of science and technology in these coun- It will also provide a unique opportu- support global efforts to advance scientif- tries have been greatly strengthened by nity for interaction and knowledge shar- ic expertise in the developing world. A ICTP alumni. N ing among peers from all countries, paving United Nations Educational, Scientific and

Solidarity concert aids Ecuador’s earthquake victims

A benefit concert co-hosted by the Embassy of Ecuador and OFID has helped raise a significant sum to sup- port the relief and recon- struction efforts underway in Ecuador in the wake of the April 16 earthquake. By Natalia Salazar

he event, which took place at OFID headquarters on May 11, T brought together representatives from Vienna-based international organi- zations, embassies and consulates as well as OFID staff. The gathering was a powerful state- ment of solidarity with OFID Member Country Ecuador, which re-joined the institution in June 2014, after a break of some 21 years. Comprising an eclectic variety of classical and Ecuadorian instrumental music, the concert featured performances from a number of international artists, including Ecuadorian pianist Jonathan Floril and his compatriot, violinist Alvaro Panchi. The musical program was preceded by a minute’s silence in memory of the 661 people who lost their lives in the tragedy. One of the pieces, “Vasija de Barro” (Mud Vessel) was dedicated to the victims of the earthquake, the worst disaster to hit

44 OFID QUARTERLY JULY 2016 NEWSROUND

the Pacific-coast country in over 70 years. In addition to the death toll, some 4,500 people sustained injuries and over OFID hosts annual meeting 30,000 lost their homes. The program concluded with “Paso- of international HR Body doble Sangre Ecuatoriana,” (Pasodoble Ecuadorian Blood), a musical piece that symbolizes Ecuador’s national history. At the beginning of May, OFID hosted the 12th Annual Addressing gathered guests, OFID Meeting of the International Finance Institutions (IFIs) Director-General, Suleiman J Al-Herbish, highlighted the plight of the 120,000 chil- Human Resources Directors at its headquarters. This dren whose schooling had been rudely interrupted by the earthquake. “The soon- high-level network meets annually to foster collaboration er we can get these students back into the and advance best practices in the area of HR. classroom, the better,” he said. by Ranya Nehmeh Ecuadorian Ambassador Wilson Pas- tor Morris thanked Mr Al-Herbish and OFID for hosting the solidarity concert he event brought together repre- and expressed his gratitude to the interna- T sentatives from more than 20 tional community for the support re - IFIs, including the World Bank, ceived. the International Monetary Fund, the OFID had the previous month—in Asian Development Bank, the African the immediate aftermath of the 7.8 mag- Development Bank, and the European nitude quake—provided an emergency Bank for Reconstruction and Develop - grant of US$400,000 to support the hu- ment, among others. manitarian activities of the Ecuadorian The meeting was opened by OFID Red Cross as it worked to deliver urgent Director-General, Suleiman J Al-Herbish, relief to survivors. who highlighted how an effective HR strat- In a letter to Ecuadorian President egy had been key to OFID’s success. “None Keynote speaker Dr Abdullah S Jum’ah, former Rafael Correa, Mr Al-Herbish stated: “We of OFID’s achievements would have been President and CEO of Saudi Aramco and Chair- man of the Saudi Arabian Investment Bank. share, with genuine feeling, the pain af- possible without the hard work and com- flicting families who have suffered the loss mitment of the high caliber staff we have “As a manager you are concerned with of loved ones and those who have lost their recruited,” he said. processes, but as a leader you are con- property in these tragic circumstances.” He continued: “Indeed, we all know cerned with emotions, interpersonal rela- In the weeks since the earthquake that any successful organization is highly tions, behaviors, people, human relations struck, attention has focused on recon- dependent on effective human resource and soft skills.” struction needs. President Correa has esti- management. No organization is sustain- The central theme of the two-day mated that about US$3bn will be needed able without a loyal and efficient work- meeting was the role of HR in a changing to rebuild damaged infrastructure. This force, dedicated to the overall goals and environment. Topics included: compensa- represents three percent of Ecuador’s GDP. objectives of the institution.” tion and benefits; talent development; The earthquake has severely impact- A similar sentiment was expressed by the importance of HR metrics and an up- ed the economy in Ecuador’s Pacific coast keynote speaker Abdullah S Jum’ah, for- date on the Emerging Leadership Program, a region. More than 24,000 jobs were lost mer President and CEO of the Saudi Arabi- 5-day leadership training organized by the and more than 7,000 companies disrupted an Oil Company and Chairman of the Organization for Economic Cooperation their operations due to quake damage. The Saudi Arabian Investment Bank. and Development (OECD) in coordination fishing industry and tourism industries, Jum’ah recalled delivering a speech with the Wharton Business School and as well as small and medium sized enter- to Saudi Aramco staff on the company’s offered to IFI employees. prises were among the most affected. 75th Anniversary. “I told them that what An update was also provided on the Ecuador’s location on the Pacific Ring makes us special is not our assets, not our IFI database, which is accessible by all of Fire, where approximately 90 percent of hardware, not the resources we have in the members and includes HR-related infor- the world’s earthquakes occur, makes the ground; rather, what makes a difference is mation of all institutions as well as com- country vulnerable to seismic activity. the people we have in Saudi Aramco,” he pensation and benefits policies and com - Over 1,600 aftershocks have rattled the said. parison of salary database. country since the April quake. Before that, Speaking on the topic Planning for the Some of the challenges discussed by the last earthquake of significant magni- unplannable and managing for the unman- the group included the need to make HR a tude was in 1949. It killed 6,000 people ageable, Jum’ah stressed the role of leader- proper partner in the business and to align and left 100,000 injured. N ship in times of crisis or change, stating: HR to the strategies of the organization. E

OFID QUARTERLY JULY 2016 45 NEWSROUND

F The group also touched upon the chal- lenge of bringing fresh blood to the orga- nization by attracting young talent, a cadre that could enhance productivity and bring passion and innovative ideas to the workplace. Finally, many institutions discussed the need to have a diversity and inclusion agenda in place, recognizing that the po- tential for better performance increased when people from diverse backgrounds and perspectives were included in the decision-making process. They likewise acknowledged the need to monitor gender distribution within institutions, particularly with regard to female staff members to ensure that they continued to be represented in senior po- sitions. The next IFI HR Directors Annual Meeting will be hosted by the Inter-Amer- Delegates from more than 20 IFIs exchanged views on the role of HR in a changing environment. ican Development Bank in 2017. N

100 children promote OFID’s message of equality at Vienna‘s biggest annual event

On April 9, 10,000 children gathered to take part whole-heartedly embraced their role as ambassadors for unity, equality and chil- in the annual Vienna City Marathon kids’ run; dren’s rights, spontaneously joining hands as they ran to show their solidarity. among them 100 children from two local schools. The campaign, which runs through- Bearing OFID’s anniversary slogan “Equal Dreams,” out 2016, promotes the United Nations Convention on the Rights of Children; in they ran hand-in-hand to advocate equal rights particular, on the right of every child to an education, to play, and to participate in for children. by Justine Würtz recreational activities. Vienna is currently providing shelter The 100 children, from Volkss- “On the occasion of our 40th anniversa- to some 22,000 refugees including chil- chule Reisnerstrasse and Neue ry,” explained OFID’s Director-General dren, many of whom are unaccompanied. T Mittelschule Koppstrasse, were Suleiman Al-Herbish, “we decided to reach The Austrian government has placed a sponsored by OFID to promote the insti- out to our host community to promote our focus on integration and education to tution’s anniversary dedication to the vision, and in particular, to applaud provide the best possible future for all plight of refugees. The youngsters were Austria’s efforts to provide safe refuge to those staying in the country. joined by 65 children of OFID and OPEC the thousands of people arriving in the Under Austrian law, all children have staff. country seeking an improved life.” the right and duty to attend school. Every The two Viennese schools, like many Representing a diversity of nations, effort has been made to ensure this right others in Austria, have integrated children races and religions, the OFID-sponsored is extended to children of asylum seekers from refugee and asylum-seeking families runners epitomized the core values of and those whose residence status is un - into established classes. OFID’s Equal Dreams campaign. They clear. In Vienna, places have been made

46 OFID QUARTERLY JULY 2016 NEWSROUND

available at 700 schools, including Reisner- strasse and Koppstrasse. The Vienna City Marathon was estab- lished 33 years ago and, since 1990, has encompassed two concurrent runs, of 2km and 4.2km, for children and teenagers. Like marathon races worldwide, the VCM has become a vehicle to support charities and promote messages of peace and soli- darity. OFID traditionally sponsors the event, and supports OFID and OPEC staff and families who wish to participate in the various runs. The organization hosts a hospitality tent at the finish area, and it has become one of the most popular events in the annual calendar; one which brings staff of the sister organizations together and unites them with their host city and country. With 2016 being a special year of celebration for OFID’s 40th anniversary, the 33rd VCM festivities took on grander dimensions and became a medium to en- Ahead of their big day, the young runners met dorse a powerful message. N for a practice session in Vienna’s Stadtpark followed by a motivational talk at OFID HQ.

OFID QUARTERLY JULY 2016 47 NEWSROUND

Sotheby´s Austria, Hungary and Poland, who expertly persuaded the audience to OFID art auction raises dig deep into their pockets. The €50,000-plus raised will directly over €50k for Austrian support the provision of learning aid in schools for refugee children as well as Red Cross refugee program German language classes for adults with the aim of facilitating their social integra- The funds raised at an OFID-hosted benefit auction tion in Austria. The Red Cross estimates that some will support the social integration of refugees seeking 170 children will benefit from learning aid for six months and some 65 adults will be to start new lives in Austria able to attend 150 hours of German classes. by Karin Oszuszky The agency’s wider program also pro- vides guidance and orientation to help n May, as part of its 40th anniver- Deyaa Alkhateeb, chair of OFID’s 40th an- refugees adapt to their new environment. sary refugee campaign, OFID niversary committee, said that the re - For adults, in particular, participation in I welcomed some 200 guests from sponse from the artists had been over - the classes provides the additional benefit Viennese banking, commercial and law whelming. “They showed great enthusiasm of an opportunity to exchange experienc- circles to view and bid on a diverse collec- when asked to donate. It was amazing to es and form friendships. tion of artworks. see how generous many of them were and The event was organized in close co- how many wanted to participate.” operation with the Austrian Red Cross, Hosted in the atrium of OFID’s head- which OFID selected as the beneficiary of quarters, the evening started with some the auction, based on the long-standing words of thanks from the Secretary-Gen- partnership between the two organiza- eral of the Austrian Red Cross, Dr Werner tions. Kerschbaum, who expressed his apprecia- Numbering 85 pieces, the art was tion for the initiative, the first of its kind donated by well-known Austrian artists for his organization. such as Herbert Brandl, Hubert Schmalix, To get bidders in the mood, OFID Thomas Reinhold and Christine de Gran- presented a short film about the remark- cy. For one artist, Jenny Feldmann, the able work of the Austrian Red Cross, which occasion held a special meaning, as she has played a lead role in the ongoing refu- hosts refugee families in her home. gee crisis affecting the country. The agen- Among the celebrities attending the cy not only offers shelter to refugees tran- event was Jeannine Schiller, recognized siting Austria, but has also established for her charity work, in particular for Chil- programs for those who want to stay. dren Cancer Aid and for disabled children The auction was conducted by An- Andrea Jungmann, Managing Director of Sotheby’s in Moldova. drea Jungmann, Managing Director of Austria, Hungary and Poland.

Commenting on the success of the evening, Dr Alkhateeb said: “It demon- strates how important people consider the integration of refugees here in Austria and how effective they consider the Red Cross program in providing these desperate peo- ple with a good foundation in their new home country.” The partnership between OFID and the global Red Cross/Red Crescent Orga- nization dates back over 30 years. During this time, OFID has provided some 75 grants to various Red Cross entities in sup- port of activities ranging from disaster Dr Werner Kerschbaum, Secretary General of the Austrian Red Cross (far left) relief to technical assistance for water and and Mr Al-Herbish (center) surrounded by OFID’s organizing team and consultants. sanitation projects. N

48 OFID QUARTERLY JULY 2016 April–June 2016

APRIL 14

Emergency grant approved International Committee of the Red Cross (ICRC). US$300,000. To support ICRC’s ongoing humanitarian operations in Yemen; specifi- cally, to cover the immediate needs of more than 2,600 households in distress, as well as many other victims of the conflict.

APRIL 15–17

Public sector loan Pierre-Emmanuel Quirin, new agreements signed 2.6 million people. This will president of the Crans Montana Forum, visited the Director- help ensure year-round travel APRIL 20 Nicaragua. US$10m. General in his office. to social amenities and jobs, Caribbean Coast Rural and unlock an area with rich Emergency grant approved Electrification. To provide agricultural resources. electrical energy services to International Federation of Grants approved off-grid households in high- Senegal. US$15m. Red Cross and Red Crescent poverty areas. The project is Arab Forum on Environment Ourossogui Hamady Ounare Societies. US$400,000. expected to enhance socioeco- and Development (AFED). Road. This project will repair To help procure essential relief nomic development and US$40,000. To sponsor 52km of road to improve access supplies and support emergen- considerably raise living the 2016 Annual Report to social infrastructure and cy operations conducted by the standards in the targeted and Conference of AFED. open up areas with high Ecuadorian Red Cross in the communities. The report, “Towards 2030: agricultural potential, benefit- wake of the devastating earthquake in that country. Sustainable Development Bangladesh. US$6m. ing around 600,000 people. Goals in a Changing Environ- Construction of Flyover ment,” will be presented at Bridges in Dhaka. To boost APRIL 27 the conference to be held in socioeconomic development in APRIL 18 November 2016 at the Ameri- the capital Dhaka through the can University of Beirut. construction of a flyover bridge Public sector loan that will ease traffic congestion Emergency grant approved agreement signed Arab Water Council (AWC). and increase access to social US$100,000. To sponsor the Bosnia and Herzegovina. services. UN High Commissioner AWC’s third report on the State for Refugees (UNHCR). US$5.35m. Rural Business of Water in the Arab Region. Madagascar. US$10m. US$300,000. To support the Development Project. To help The report will produce reliable Soanierana Ivongo–North upgrading of shelters in areas subsistence farmers transition assessments of water resource- Mananara Road Rehabilitation. with a high concentration of to commercial farming and related indicators to be used To upgrade a 75.6km earth road vulnerable, internally-dis- develop non-farm enterprises. by decision-makers across the and build bridges and drainage placed populations in Syria. This will increase the income region for proper planning works in the northeast region OFID’s grant will directly of about 20,000 rural house- and management in the water of Analanjirofo, populated by benefit over 1,000 people. holds in 47 municipalities. sector.

OFID QUARTERLY JULY 2016 49 OFID DIARY

Director-General Al-Herbish (second from left) received HE Dr Jawad Naji, Prime Minister’s Adviser for Islamic and Arab Fund Affairs of the State of Palestine (third from left). They are seen here with HE Salah Abdel Shafi, Ambassador, Mission of the State of Palestine to Austria and Slove- nia (right) and Walid Mehalaine, Head, OFID Grant Unit (left).

International Association for Paraguay. US$32m. Vietnam. US$21.8m. Energy Economics (IAEE). JUNE 2 Metropolitan Area Electricity Dam Vac Bridge. To build a US$100,000. To sponsor the Transmission and Distribution bridge over the Dam Vac lake to participation at IAEE confer- Ministerial Council holds System Improvement. To help improve connectivity between ences in 2017 and 2018 of 37th Annual Session meet present and future energy the northern urban and around 55 students from needs and expand coverage in southern rural regions of Vinh developing countries studying See story, page 24 the Asuncion metropolitan Yen City. This will help in the field of energy and area, populated by around two increase income-generating economics. million people. In addition to opportunities and access to JUNE 3 replacing and installing new social services for over 100,000 International Humanitarian infrastructure, the project will people. Relief. US$100,000. To 155th Session of carry out institutional Zimbabwe. US$7.6m. support primary education for the Governing Board strengthening. Syrian refugee children in the Poverty Alleviation. The Beqa’a region of Lebanon Public sector projects St Lucia. US$16.16m. project will carry out activities through the use of mobile approved Millennium Highway Upgrade, in three provinces populated schools. Around 2,000 Phase II. To facilitate the by around 3.8 million people. children are expected to attend Burundi. US$6m. movement of agricultural and These include: awareness the schools during the Agriculture Value Chains industrial goods, reduce campaigns to sensitize scholastic year 2016/2017. Development, Phase II. To transport costs and help boost communities and stakeholders; develop and improve crop and living conditions of low-in- community support initiatives Vienna University of Tech- livestock production activities come communities in the to identify demand-driven nology, Institute of Atomic and strengthen communi- capital Castries and the sub-projects and farm demon- and Subatomic Physics ty-based initiatives, and in northwest. Around 19,000 stration exercises to improve Arab-European Summer turn enhance food security households are expected to livestock productivity; and School on Energy Education. and incomes for over 200,000 benefit from the project. support to savings and credit US$70,000. To promote and people. cooperatives. improve the teaching of Swaziland. US$14m. renewable and non-renewable Ethiopia. US$20m. National Referral Hospital. To Grants approved energy in secondary and Hamusit–Estie Road Upgrad- enhance the efficiency and technical schools across the ing. To improve connections quality of healthcare services International Center for Arab region. along a 77km-long stretch in by constructing and equipping Biosaline Agriculture. the South Gondor Zone, a key a 250-bed hospital as well as an US$500,000. To improve agricultural production area. out-patient clinic and staff small-scale irrigation technolo- This will enhance farmers’ housing. The new facility will gies and introduce on-farm access to markets, reduce travel serve around 1.3 million water management practices costs and time and enable the people and reduce the need to with a view to increasing 500,000-strong population to send patients abroad for agricultural productivity and reach social services. treatment. enhancing food security in

50 OFID QUARTERLY JULY 2016 OFID DIARY

Burkina Faso, Niger, Mali and United Nations Development Senegal. In all, the project will Program. US$800,000. benefit about 20,000 re- To construct infrastructure and source-poor smallholder improve waste management farmers. facilities in areas of Jordan and Lebanon hosting Syrian Hilfswerk Austria. refugees. Around 50,000 US$400,000. To reduce refugees and over 26,000 local maternal-child mortality in residents are expected to rural areas of Sofala province, benefit. Mozambique, by improving/ installing water and sanitation Austrian Development systems and providing Agency. US$600,000. This renewable energy systems to grant will support the third health posts, among other phase of the “Southern Africa activities. The project is expect- Solar Training and Demonstra- ed to directly benefit around tion Initiative” in Lesotho, 265,000 women and 130,000 Mozambique, and Zimbabwe. infants. The initiative will help reduce energy costs and improve Mr Al-Herbish with Nigerian living standards for approxi- Ambassador HE Abel A Ayoko, mately 7,000 people. who is to return shortly to his country to take up the position of Undersecretary of Foreign Affairs.

Meetings attended by OFID

APRIL 4–8 APRIL 6–11 APRIL 28 MAY 15–17 JOHANNESBURG, SOUTH NASSAU, BAHAMAS VIENNA, AUSTRIA LONDON, UK AFRICA 57th Annual Meeting of the 14th Meeting of the Vienna 12th Getenergy Global Annual International Chamber of Board of Governors of the Energy Club Meeting Commerce Banking Commis- Inter-American Development sion Annual Meeting Bank MAY 2–5 MAY 15–19 FRANKFURT, GERMANY JAKARTA, INDONESIA APRIL 15–18 APRIL 5–6 49th Annual Meeting of the 41st Annual Meeting of the WASHINGTON DC, USA Islamic Development Bank MANAMA, BAHRAIN Asian Development Bank World Bank and International Group Annual Meeting of the Arab Monetary Fund Spring Financial Institutions Meetings MAY 9–11 MAY 21–23 VIENNA, AUSTRIA DOHA, QATAR APRIL 6 APRIL 18–19 77th Heads of Operations Coor- dination Group Meeting 16th Doha Forum AMSTERDAM, WASHINGTON DC, USA NETHERLANDS World Bank Executive Forum 61st Executive Board Meeting for Policy-Makers and Senior MAY 11–12 MAY 23–27 of the Common Fund for Officials LONDON, UK Commodities LUSAKA, ZAMBIA 25th Annual Meeting of the 51st Annual Meeting of the APRIL 27 European Bank for Reconstruc- African Development Bank APRIL 6 tion and Development Group VIENNA, AUSTRIA PARIS, FRANCE 20th Anniversary of the 10th Annual Development Comprehensive Nucle- MAY 14–19 JUNE 15–16 Finance Institutions Corporate ar-Test-Ban Treaty (CTBT) and MONTEGO BAY, JAMAICA VIENNA, AUSTRIA Governance Conference High-Level Panel Discussion 46th Annual Meeting of the SE4All Advisory Board Meeting Board of Governors of the Caribbean Development Bank

www.ofid.org

OFID QUARTERLY JULY 2016 51 OFID DIARY

Governing Board Chairman Abdul Wahab Al-Bader (second from right) with Director- General Al-Herbish (second from left) and other members of OFID Senior Management. 155th Session of the Governing Board

Meeting in its 155th Session in Vienna on June 3, the Governing Board approved over US$230m in support of new development operations in 17 partner countries. Of the total amount, US$118m will co-finance seven public sector projects in a range of sectors, namely agriculture, energy, health and transportation. Through the private sector window, six transactions totaling US$98m were approved in favor of sustainable energy schemes in Egypt; while, under the trade finance facility, US$15m was provided in support of SMEs and international trade activities in Armenia. Grant financing accounted for some US$2.3m of the new approvals and comprised funding for four initiatives in a variety of priority areas. Further details of public sector and grant approvals can be found in the Diary. HE Wilson Pastor Morris OFID Governor and Ambassador of Ecuador to Austria

52 OFID QUARTERLY JULY 2016 OFID DIARY

Mr Ibrahim Alturki Alternate Governor, Saudi Arabia

Mr Majed Ali Omran Governor, United Arab Emirates

Mr Farid Tiaiba Governor, Algeria

HE Dr Mohammad Khazaee Governor, IR Iran

OFID QUARTERLY JULY 2016 53 OFID DIARY

LOAN & GRANT SIGNATURE

Bosnia and Herzegovina gets US$5.35m boost to rural business Vjekoslav Bevanda, Minister of Finance and Treasury, initialled the agreement in favour of a project to help subsistence farmers transition to commercial far- ming and develop non-farm enterpri- LOAN SIGNATURE ses, ultimately benefiting 20,000 rural households.

US$10m to Madagascar for road rehabilitation Mr Al-Herbish and Malagasy Minister of Finance and Budget, François Maurice Gervais Rakotoarimanana, sign the agreement for a project that will unlock a rich agricultural area and give some 2.6 million people improved access to social amenities and jobs. LOAN & GRANT SIGNATURE

LOAN & GRANT SIGNATURE

US$20m for road upgrade in Sierra Leone Jongopie Siaka Stevens, Ambassador of Sierra Leone to Germany, concluded the agreement for a road project that will improve links to neighboring countries and enable the area’s 244,000 inhabi- tants gain easier access to social services.

54 OFID QUARTERLY JULY 2016 OFID DIARY

Senegal receives US$15m to improve transport Amadou Ba, Minister of Economy, Finance and Planning, signed the agreement for a road improvement project that will benefit 600,000 people through better access to social infrastructure, markets and US$6m to Bangladesh agricultural inputs. to ease urban congestion Mr Al-Herbish shakes hands with Mohammad Mejbahuddin, Senior Secretary, Ministry of Finance, following conclusion of the agree- ment for a project to construct a flyover bridge in the capital Dhaka.

Nigaragua secures US$10m to increase energy provisiony Mr Al-Herbish and Iván Acosta Montalván, Minister of Finance and Public Credit, signed the agreement for a project to provide electricity to off-grid households in high-poverty areas, potentially benefit- ing up to 725,000 people.

The full list of loan and grant signatures can be found on pages 49-51.

OFID QUARTERLY JULY 2016 55 SPOTLIGHT

From left: Hannes Seebacher, Child of Play Foundation; Pierre Krähenbühl, UNRWA Commissioner-General; and UNHCR High-Commissioner Filippo Grandi.

Equal Dreams: A message of hope to and from refugee children worldwide

OFID kept alive the spirit of its 40th anniversary dedication to refugees with an April–June exhibition promoting the equality of all children’s dreams.

by Nadia Benamara

56 OFID QUARTERLY JULY 2016 SPOTLIGHT

howcasing the challenges of the cur- He pointed out that OFID’s gradual transforma- rent refugee crisis from a child’s per - tion into a world class development institution S spective, the exhibit featured large- had enabled it to expand its longstanding sup- scale photographs created by the international port to refugees through multiple financing Child of Play foundation in collaboration with facilities. hundreds of refugee (or otherwise at risk) chil- “The four grant agreements we are going to dren. sign today are good examples of the diversity of Guided by the UN Convention on the our efforts and of our multi-faceted approach Rights of the Child, this initiative engages par- toward the needs of internally-displaced per- ticipants in cultural, educational and recre - sons and refugees, especially those taking refuge ational activities that are otherwise unavailable in countries already facing their own develop- to them. ment challenges.” The resulting artwork communicated the Congratulating OFID on 40 years of success- indomitable essence of children’s aspirations ful humanitarian and development work, UN- with striking immediacy. HCR High Commissioner Filippo Grandi said: The exhibit was co-hosted by the United “In a year in which we in the UN, and in the Nations High Commissioner for Refugees (UN- humanitarian community, are looking so close- HCR) and the UN Relief and Works Agency for ly at how to bridge the gap between humanitar- Palestine Refugees, (UNRWA). ian programs and development ones, OFID is In welcoming guests to the April 26 open- leading the way by tackling humanitarian ing, OFID Director General Suleiman J Al-Her- problems with a development eye.” bish called attention to the present day displace- Grandi also paid tribute to the efforts of ment of some 30 million children and the OFID’s host country, Austria. impact this has had on development as well as “This is a country that, especially last year, host countries. took in a large number of refugees from Syria “The world’s refugee children are at risk,” and other parts of the world,” said Grandi. said Al Herbish. “We must address the challeng- “This flow here and in other places has re- es they face by providing realistic solutions to ally contributed to the sense that refugees dis- help integrate them into their host communi- placed are a global responsibility that we must ties.” all share and find solutions for.” E

Opening the exhibition (from left): Pierre Krähenbühl, UNRWA Commissioner-General; Filippo Grandi, UNHCR High-Commissioner; Hannes Seebacher and Lukas Hüller, Child of Play Foundation; Robert Mardini, Regional Director, Middle East, ICRC; and OFID Director- General Al-Herbish.

OFID QUARTERLY JULY 2016 57 SPOTLIGHT

the Gaza Strip,” said Krähenbühl, “I promised her that her message would travel around the world and be heard on her behalf.” In a follow-up interview with the Qua­rterly later that evening, he explained why sharing a story like Rua’kdeih’s matters: “It is unacceptable to reduce suffering to anonymity,” said Krähenbühl. “Behind every number, there is an individual destiny hoping to come forward, to engage, play a role and con- tribute in life. This is why I give the names of young Palestinian boys and girls. All of us, hu- manitarian organizations and media included, need to re-learn how we think and speak about the issues. Only then will we be able to change the way the world functions.” Other distinguished guests included Rob- ert Mardini, Regional Director, Middle East, International Committee of the Red Cross (ICRC), and Dr Werner Kerschbaum, Secre - tary-General of the Austrian Red Cross. Dr Kershbaum told the Quarterly that the F UNRWA Commissioner General Pierre Pierre Krähenbühl, evening had reinforced his belief in the power Krähenbühl focused his address on the essential UNRWA Commissioner- of hope and the importance of opportunity. role of education in keeping hope alive for 5.2 General, focused his “We have to invest in refugees, who have a million Palestine refugees awaiting political address on the role of right to stay,” said Kerschbaum. We have to in - resolution after more than 65 years. vest in their schooling, invest in language train- education in keeping Citing the accomplishments of individual ing and in vocational training. Then, at the end Palestinian hopes alive. children at some of UNRWA’s 700 schools in the of the day, they will be beneficial to the devel- Middle East, he said: opment of Austria and contribute to the welfare “I have never in my life been as impressed of Austrian society.” as I am by the energy and commitment of young Filippo Grandi reiterated his compliments Palestinian students in those schools.” to OFID after viewing the displayed artwork: Krähenbühl wrapped up his remarks with “This is a fantastic exhibition on children. an unforgettable anecdote. Holding a child’s This combination of advocacy, humanitarian notebook in his hand, he explained that it was assistance and a developmental approach makes standard issue in all UNRWA schools but that OFID a very unique and effective partner for he and his colleagues had found this particular organizations that work on the ground.” notebook amid the rubble of a battle-destroyed OFID signed four grant agreements totaling school in Gaza. over US$2m to provide assistance to refugees and It belonged to a 13-year old Palestinian girl internally displaced people through its partner named Rua’kdeih. None of his colleagues knew organizations that evening. whether or not she had survived the war. They comprise emergency aid for ongoing Krähenbühl promptly translated one of the ICRC humanitarian operations in Yemen; a poems she had composed: supplementary grant to UNRWA to improve “Hope is a friend that never betrays you. It water and sanitation facilities in the Shu’fat is something that goes away from time to time Camp in East Jerusalem; support to a UNHCR but will always come back … Happiness is some- initiative to provide shelter for internally dis - thing you should not look for in the neighbor’s placed persons in Syria; and funding for the garden. It is something you should cultivate in Child of Play foundation, which will implement your own garden.” an educational awareness program at Al Arkam Thankfully, Rua’kdeih did survive the war. school in Amman, Jordan. According to Krähenbühl, she recited that same Child of Play founder Lukas Hüller said: “It poem at her school’s re-inauguration several is an honor that through this new cooperation months later. with OFID our initiative will have the opportu- ‘When she gave me her notebook because nity to develop a project with hundreds of she, and so many other children, cannot leave Syrian refugee children in Jordan.” N

58 OFID QUARTERLY JULY 2016 MEMBER STATES FOCUS

BY NADIA BENAMARA

Ecuador’s Galapagos Islands to expand on Wind Farm success

An innovative renewable energy project on the Galapagos enabling universal access to sustainable energy.” Islands has succeeded in meeting 30 percent of local GSEP’s expansion recommendations energy needs while slashing greenhouse gas emissions (included in the May 2016 report) could increase the penetration of renewables on and helping preserve a critically endangered species. San Cristobal to 70 percent in the near future. he local utility, ElecGalapagos, is 2001 spill from the tanker ship Jessica, Population growth and thriving tour- now moving forward with plans which had been delivering diesel fuel to ism on the Galapagos (currently capped at T to expand toward 100 percent the Galapagos. 200,000 visitors a year) are spurring cur- renewable energy. The event sparked an international rent energy demands. San Cristobal Island Wind Power effort to safeguard the islands irreplace- The local utility, which took owner- Project has to date generated more than 26 able ecosystem by reducing their depen- ship of the San Cristobal project on March million kWh of electricity for inhabitants dence on fossil fuels. 31, plans to keep up: of the Galapagos’s second most populous According to Peter Terium, CEO of “Our team shall continue working on island. GSEP member RWE AG: the implementation of current and future In its eight years of operation, it has “[The project] has briskly demon - renewable energy projects to convert the also displaced a total 8.7 million liters of strated that public-private partnerships Galapagos into a zero fossil fuels territory,” diesel fuel and prevented the emission of based on mutual trust and cooperation stated ElecGalapagos Executive President 21,000 tonnes of carbon dioxide. among all stakeholders are a key factor for Marco Salao Bravo. N Thanks to an environmental man- agement plan, it has also increased the hatching and reproduction rates of a rare indigenous bird—the Galapagos petrel— which sustained zero wind turbine inju- ries. “This project has been a national pi- oneer in the use of wind resources and has served as a reference for the development of similar projects both in the Galapagos Islands and in mainland Ecuador,” said PEDROSALA/SHUTTERSTOCK.COM PHOTO: Ecuadorian Minister of Electricity and Renewable Energy Dr Esteban Albornoz Vintimilla in a recent statement. Project findings were released in a May 2016 report by the Global Sustainable Electricity Partnership (GSEP), which de- veloped the US$10mn project in partner- ship with the Government of Ecuador and the UN Development Program. GSEP is a not-for-profit association of 11 of the world’s leading electricity com- panies. San Cristobal Island Wind Power Project was set up partly in response to a

OFID QUARTERLY JULY 2016 59 MEMBER STATES FOCUS

“Partnership between the government and Qatar highlights importance civil society organizations is critical to achieving strategic development goals,” of Arab civil society said al-Nuami. “Civil society organiza- tions need to be empowered in order to carry out their roles.” A two-day conference hosted by the Qatar Social Work Speaking to the press after the event’s Foundation (QSWF) has broken new ground by bringing closing session, QSWF CEO Amal Adbul- latif Al Mannai said: the role of civil society organizations to the forefront of “For the first time, many Arab gov- regional discussions on achieving the 2030 Sustainable ernments have admitted the vital role of civil society organizations in maintaining Development Goals (SDGs). sustainable development. They have also assigned them greater roles. “We think our experience in Qatar, eld at the National Convention Adding that ongoing demographic, po - though relatively new, is a good example Center in Doha, the April 20–21 litical and economic challenges would to be followed by others in terms of inde - H event encouraged more than 200 delay development progress in the region pendence in decision-making and effec- local and international participants to as a whole, Al Missned called on partici - tive cooperation with both government exchange experiences, monitor progress pants to “take serious action to identify and private sectors.” and issue recommendations on how to past failures, create smart solutions, and The first Arab Conference on the Role of design a development strategy that is to best involve Arab civil society organiza- Civil Society in the Sustainable Development be executed by society in all its compo - tions in development policies. Agenda 2030 was organized in collabora- nents.” In opening remarks reported by the tion with the United Nations Development Qatar News Agency, QSWF Chairman Addressing a plenary session on pros- Program, UN Population Fund, the UN Munira bint Nasser Al Missned said: “The pects for implementing the SDGs, Qatari Economic and Social Commission for implementation of the Millennium Devel- Minister for Administrative Development, Western Asia, the Arab League, and the opment Goals (MDGs) has seen little prog- Labor and Social Affairs Dr Issa Saad al-Juf- Gulf Cooperation Council. N ress in the region and encountered many fali al-Nuami, called for a similarly inclu- delays.” sive approach:

Source: United Nations

60 OFID QUARTERLY JULY 2016 MEMBER STATES FOCUS

Iran doubles its number of female parliamentarians

PHOTO: ATTA KENARE/AFP ATTA PHOTO: Iranians elected a record-breaking 18 women to represent them in the country’s new parliament, which opens session May 28.

ourteen female candidates won One reformist female candidate, Minu seats in the initial vote, held Feb- Khaleqi from Isfahan, has since seen her F ruary 26. Another four were votes annulled by Iran’s Guardian Coun- elected in an April 29 run-off for constit- cil, a constitutional oversight committee. uencies lacking a decisive first round ma- Iran’s President Hassan Rouhani jority. praised the latest election results on Twit- This is the highest number of female ter. According to the Islamic Republic parliamentarians in the history of the Is- News Agency, his official feed stated: lamic Republic of Iran, and double that of “It is an outstanding record. I hope the outgoing Conservative parliament. such a success will promise more effective No Conservative female candidates activity of competent women in all were re-elected to the 290-member body fields.” N (also known as the Islamic Consultative Assembly).

Algeria/UAE: Bilateral business exchange bears fruit Due to commence operations in 2018, the plant will produce metal structures and A newly-established venture between Algeria’s derivatives required in public works and public food group AGRODIV and UAE’s Elite Agro construction. Once fully operational, it is expected LLC promises to help Algeria achieve significant to reach an annual capacity of more than agricultural self-sufficiency by 2021. one million tonnes and create over 2,000 direct jobs. The Algerian–UAE Investment Forum nked on the sidelines of the first AGRODIV CEO Djamila Ikhneche told the was co-chaired by UAE Minister of Econo- Algerian–UAE Investment Forum Algeria Press Service the partnership my Sultan bin Saeed Al Mansouri and Al- I in Abu Dhabi, April 17, the agree- should allow Algeria to meet its needs in gerian Minister for Industry and Mines ment calls for joint development of two cereals, fodder, fruits and vegetables with- Abdessalem Bouchouareb. large-scale farms in the Algerian provinc- in the next five years. Al Mansouri praised UAE–Algerian es of Setif and Guelma. Food imports (primarily wheat, bar- relations in his opening remarks and not- The 1,000-plus hectare farms already ley, milk and meat) currently account for ed that trade between the two countries produce between 0.9 and 1.5 tonnes of some 20 percent of Algeria’s annual import reached US$980m in 2015. cereals, fruits, vegetables and animal feed costs. According to the Emirates News per hectare. The April 17 business exchange also Agency, he also said that the UAE has Elite Agro’s involvement is expected introduced plans for a steel production emerged as a key investor in Algeria with to result in harvests of between 5 and 7 and processing plant in Algeria’s Relizane current investments of US$9bn. tonnes per hectare under rain-fed condi- province. More than 400 companies from var- tions. Additional irrigation could boost Two private companies, Algeria’s ious sectors, including renewable energy yields to as much as 10 tonnes per hect - Bellazoug and the UAE’s Bidewi Group, are and tourism, participated in the inaugural are. partnering on the US$300m investment. event. N

OFID QUARTERLY JULY 2016 61 OPEC

Saudi Aramco to play key role Saudi Aramco has pledged its “unequivocal support” for in national ‘Saudi Vision 2030,’ Saudi Arabia’s sweeping national transformation transformation program that was announced by the program Kingdom’s leaders in April. Courtesy of the OPEC Bulletin

he reforms, announced by Saudi King Fundamental shift Salman Bin Abdulaziz Al-Saud and T On addressing the urgent need to move the approved by the Kingdom’s Council of Kingdom from an oil-based economy, which is Ministers, envisage the national energy compa- a major thrust of ‘Saudi Vision 2030’, Al-Falih ny transforming itself from an oil and gas firm commented: “There needs to be a fundamental into a “global industrial conglomerate.” shift in our economic landscape if we are to re- It will become involved in many sectors duce our unsustainable over-reliance on oil.

PHOTO: REUTERS/RICHARD CARSON PHOTO: and services, using its vast financial resources “Therefore, accelerating reforms across key to create jobs and help diversify the national economic sectors, privatization of key industries economy beyond crude oil. and the creation of a globally competitive small- Khalid A Al-Falih, Saudi Aramco’s Chair- and medium-sized enterprise (SME) sector are man, said of the move: “Saudi Vision 2030 is a essential to delivering Saudi Vision 2030,” he pioneering and game-changing plan that will asserted. enable sustained economic growth, diversifica- Al-Falih also observed that the Kingdom was opening itself for further investment. tion and job creation to benefit the Kingdom “The message is clear: Saudi Arabia is open - Khalid A Al-Falih, Chairman of and its citizens for generations to come.” Saudi Aramco ing itself for further investment by those already Quoted in the company’s official magazine, in the Kingdom, as well as openly inviting po- Arabian Sun, Al-Falih, who has since been ap - tential future investors,” he affirmed. pointed the Kingdom’s new Minister of Energy, “Investment and export opportunities exist Industry and Mineral Resources, stated that for global companies who want to take advan- Saudi Aramco would continue its commitment tage of Saudi Arabia’s ready access to infrastruc- and remain fully engaged as a champion of ture and abundant supply of energy.” transformation, ensuring that its significant Al-Falih pointed out that Saudi Arabia pro- contributions to the overall social and econom- vided unrivaled competitive advantages and ic development of Saudi Arabia generated an investment opportunities as a manufacturing even greater positive impact in the future. and trading base to reach global markets. “The

62 OFID QUARTERLY JULY 2016 OPEC

PHOTO: IGOR SOROKIN/SHUTTERSTOCK.COM government will continue to ease regulations to Going forward, he stated, the company would make the Kingdom one of the most attractive continue to build on its accelerated transforma- locations in the world to do business,” he pro - tion and serve as a pillar, role model and cham- fessed. pion of transformation in the Kingdom. Al-Falih made it clear that Saudi Vision “Together, our continued efforts, dili- 2030 would require a national effort. “The vision gence and focus will help to strengthen the PHOTO: SAUDI ARAMCO is there, the path has been set and the prize is company and its future prospects and, in so great. Everyone—business and community lead- doing, help to make the Kingdom’s economy ers, partners, suppliers, and most of all Saudi more diversified, sustainable and globally com- men and women, especially our talented youth— petitive,” he contended. can make a contribution, and everyone must On maintaining the Kingdom’s position as play their part,” he maintained. “the world’s most reliable supplier of energy,” Amin Nasser, Saudi Aramco President Nasser said: “We remain committed to main- and Chief Executive Officer, said that Saudi taining the Kingdom’s position as the world’s Vision 2030 ushered in an exciting new chapter top oil exporter and most reliable supplier of for the Kingdom. energy, while continuing to make strategic in- “As Saudi Arabia embarks on the jour- vestments across the hydrocarbons value chain Amin Nasser, Saudi Aramco ney toward the realization of Vision 2030, I am that will elevate the Kingdom as the global hub President and Chief Executive confident in our ability to deliver on our stake- for energy.” Officer. holders’ expectations, to achieve the goals of our Speaking on some of the actions needed to own strategic transformation, and to create even attain Saudi Vision 2030, Nasser pointed out more promising opportunities through the work that the Kingdom’s transformation vision de - we do and the resources we manage,” he stated. manded innovation, technology and research and development to spur a new era of industrial Initial public offering growth. Nasser said the company was very excited about “Saudi Aramco’s continued leadership and the prospect of a potential initial public offering investments in upstream and new investments (IPO) for the company which, he said, would in downstream expansion will help drive the give it the opportunity to deepen its engagement widespread and rapid in-Kingdom development and value-creation impact in the economic of a vibrant population of small- and medi - transformation of Saudi Arabia, and further um-sized enterprises focused on producing showcase Saudi Aramco’s excellence locally and high-value finished and semi-finished products globally. in the petrochemicals conversion sector.” It is understood that under the reform Nasser lauded Saudi Vision 2030 as a major plan, a stake of less than five percent of Saudi boost for Saudi Aramco’s In-Kingdom Total Aramco is to be offered to the public. An initial Value Add (IKTVA) localization programme. public offering could be held in 2017 or 2018. He said: “Saudi Vision 2030 will provide “It is important to remember that even tremendous opportunities to strengthen Saudi in a period of far-reaching change, some things Arabia’s local supply chain capabilities across remain constant: the dedication of our people, every industry sector. the commitment and capabilities of our organi- “Saudi Aramco’s flagship IKTVA programme zation and the can-do spirit that has always been is essential to attracting inward investments in present in Saudi Aramco,” commented Nasser. local engineering; innovation and technology, E

OFID QUARTERLY JULY 2016 63 OPEC

F and manufacturing; and to creating management and increasing oil and gas confidence in the local stock market and thousands of highly skilled and special- exploration and discovery, as well as striv- boost foreign direct investment, market ized jobs for Saudis, while embedding an ing to replace 100 percent of produced oil stability and overall growth. entrepreneurship culture and more agile with new reserves and growing reserves “This will be good for the country and business climate,” he added. annually. for Saudi Aramco and its customers, part- Other Saudi Aramco officials in the “All of these factors are embedded in ners, and suppliers,” he said. Kingdom have also commented on the our strategy to contribute even greater Muhammad M Al Saggaf, Senior Vice reforms. value to the Kingdom’s economy. President of Operations and Business Ser- Ahmad A Al Sa’adi, Senior Vice Pres- “As well as supporting our customers vices, said Saudi Vision 2030 recognized ident of Technical Services, said Saudi through commodities’ export, strength- that the Kingdom’s people were the King- Vision 2030 called for an accelerated and ening our role as the world’s most reliable dom’s most precious resource. broad diversification of the economy, energy supplier, Saudi Aramco will contin- Lowering the national rate of unem- driven by entrepreneurship, technologi- ue to support the Kingdom’s domestic ployment from 11 per cent to seven per cal innovation and targeted investment. energy needs: supporting the shift to gas cent by 2030 was a challenging but “Saudi Aramco’s IKTVA programme to drive utilities’ expansion and improved achievable goal. is one example of how this vision is being national energy efficiency; oil to support Enhancing national education levels, put into practice today by promoting the transport fuel efficiency; and petrochem- embedding skills for the knowledge econ- development of localized energy sector ical feedstock supply to support rapid omy and increasing women’s participa- tion in the workforce were all critical to businesses so that the company and the economic diversification through the helping achieve the reforms. Kingdom benefit from a cost competitive growth of SME manufacturing sectors that “Saudi Aramco will continue to sup- local supply chain and the creation of new are reliant on downstream conversion into port initiatives that enrich our workforce high-quality jobs for Saudis. high-quality consumer products.” with world-class science, technology and “This is a model that I believe can be Al Qahtani said Saudi Vision 2030 engineering skills and training, but also expanded upon and extended nationally would consolidate and augment Saudi through partnerships that fit with our across many industrial sectors to create Aramco’s role at the heart of the Kingdom. company and the Kingdom’s strategy,” he thousands of new, well-paid and highly Critically important, he maintained, was stated. skilled jobs that will appeal to our youth- the role that highly skilled local talent Al Saggaf said that, for example, ful workforce,” he said. would play in creating a more vibrant and through Saudi Aramco’s partnership with Mohammed Y Al Qahtani, Senior diverse economy. Tata and GE, the Riyadh Business Process Vice President of Upstream, reaffirmed “Saudi Aramco will continue to invest Outsourcing Centre was delivering vital that Saudi Arabia was a nation blessed in strengthening its world-class engineer- with hydrocarbons and while the nation- business services efficiently and afford- ing capabilities and training and develop- ably to customers around the world. al economy must reduce its over-depen- ment programs. This focused effort will “And it is doing so by employing a dence on oil, “our unrivaled oil and gas help to ensure that future generations of skilled and talented female-only work- assets will help continue to drive the young Saudis are well prepared to manage force in a way that is both customer-cen- Kingdom’s economic growth, long into the Kingdom’s energy resources,” he added. tric in terms of excellence of delivery and the horizon on a sustainable basis.” employee-centric in terms of flexibility,” He stressed that Saudi Aramco pos - he maintained. sessed the world’s highest quality of re - Reduce oil over-dependence “I am confident that by 2030 the Sau- serves and product grade quality. “We are Abdallah I Al Saadan, Senior Vice Presi - di Vision blueprint will have enhanced the world’s lowest cost producer, and our dent of Finance, Strategy and Develop - and diversified our entire national labour recovery rates are among the highest in ment, asserted that delivering Saudi Vi - force for the better across many sectors. the world.” sion 2030 would transform the national This is both what we need and what the In addition, he said, the company’s economy and reduce the over-dependence nation deserves.” N upstream research and development was on oil. focused on increasing recovery from ex- The listing of Saudi Aramco and oth- isting assets and optimizing reservoir er privatizations would increase investor

64 OFID QUARTERLY JULY 2016

Parkring 8, A-1010 Vienna, Austria P.O. Box 995, A-1011 Vienna, Austria Telephone: (+43-1) 515 64-0 Fax: (+43-1) 513 92-38 www.ofid.org