OPEC Fund commits US$400 million to expand access to quality education

Highlights:

• OPEC Fund contribution forms part of an US$800 million Arab Coordination Group pledge for SmartEd Phase II
• Together with US$200 million from the Global Partnership for Education (GPE) the initiative will mobilize US$1 billion
• Combined funds to strengthen education systems and expand learning opportunities

The OPEC Fund for International Development is committing US$400 million for SmartEd Phase II, an initiative to strengthen education systems and expand access to quality learning opportunities in developing countries.

OPEC Fund President Abdulhamid Alkhalifa said: "Investing in education means investing in opportunity, prosperity and peace. Through SmartEd we are pooling our resources with partners to help countries strengthen education systems and give more children and young people the knowledge and skills they need to build better futures based on knowledge, skills and practical expertise."

More than 270 million children and young people worldwide are out of school, according to the United Nations, while many more are not acquiring the knowledge and skills needed to fulfil their potential. SmartEd Phase II will expand support to additional eligible countries, helping governments finance country-led reforms to improve access, learning outcomes and the resilience of education systems.

President Alkhalifa added: "Addressing the global education challenge requires stronger partnerships, innovative financing and action at scale. By working together we can help countries strengthen their education systems and equip the next generation with the knowledge and skills they need to fulfil their potential."

SmartEd combines GPE grant resources with concessional financing from development partners. Through the GPE Multiplier, a finance instrument, every US$1 in grant financing can unlock US$4 in additional concessional financing, enabling countries to pursue larger-scale education programs on more affordable terms.

The initiative was launched in 2021 as a partnership between GPE and the Arab Coordination Group. SmarteEd Phase 1 targeted US$500 million in financing and has supported education investments in Cameroon, Chad, the Kyrgyz Republic and Uzbekistan.

Education has always been a central concern of the OPEC Fund and to date the institution has committed around US$1.5 billion to some 500 education projects globally, supporting access to learning, skills development and stronger education systems.

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$32 billion to development projects in over 125 countries. These projects represent a total value exceeding US$240 billion, equivalent to approximately US$7.50 mobilized for every US$1 committed by the OPEC Fund. The OPEC Fund is rated AA+/Outlook Positive by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.