Asunción, Paraguay – The OPEC Fund for International Development (the OPEC Fund) has announced a US$50 million loan to Banco Continental S.A.E.C.A. to support small- and medium-sized enterprises (SMEs) in the agricultural and livestock sectors in Paraguay. This investment is part of the OPEC Fund’s Food Security Action Plan and aims to provide financing to farmers and agricultural SMEs, which are crucial for Paraguay’s economic sustainability and employment.
Agribusiness plays a vital role in Paraguay’s economy, with beef products, soybeans, corn, rice, and seeds being the primary source of the country’s foreign currency. Moreover, agribusiness SMEs generate around 80 percent of employment in the country. However, this sector often faces challenges in accessing long-term financing due to associated risks, such as vulnerability to climate change, and is largely underserved by financial institutions. The OPEC Fund’s loan to Banco Continental aims to bridge this gap by providing much-needed finance to agribusinesses, promoting financial inclusion, and increasing productivity in the sector.
Abdulhamid Alkhalifa, Director-General of the OPEC Fund, highlighted the importance of supporting agribusinesses in food-exporting countries like Paraguay, stating, “Global food security is a priority area for the OPEC Fund, and it is critical to support agribusinesses in food-exporting countries such as Paraguay. Building on our strong partnership with Banco Continental, we are reaching businesses in this vital sector for Paraguay’s economy, ensuring that they have access to funds, increase links to global value chains and contribute to the economic sustainability in Paraguay.”
As part of our Food Security Action Plan, we are providing a US$50 million loan to @bcontinentalpy for on-lending to small- and medium-sized enterprises (#SMEs) in agricultural and livestock sectors in #Paraguay. 🇵🇾 🤝 #SDG2 #ZeroHunger #GlobalGoals
🔗 https://t.co/TDPrltiOqK pic.twitter.com/T6tXdo0Qrw
— The OPEC Fund for International Development (@TheOPECFund) April 19, 2023This is not the first time that the OPEC Fund has partnered with Banco Continental. The OPEC Fund has previously provided two loans totaling US$25 million to the bank to promote international trade and support SMEs. The new US$50 million loan is also aligned with several of the United Nations’ Sustainable Development Goals (SDGs), including SDG 1: No poverty, SDG 2: Zero hunger, and SDG 8: Decent work and economic growth.
In 2022, the OPEC Fund launched its Food Security Action Plan, committing US$1 billion over the next three years to provide immediate assistance to cover the import costs of basic commodities such as seeds, grains, and fertilizers, while also supporting the medium and long-term security of food supply in partner countries.
The OPEC Fund has been supporting Paraguay’s sustainable development since 1978, with over US$600 million in loans to date, primarily for projects related to transport, energy, agriculture, and water and sanitation.
The OPEC Fund’s loan to Banco Continental is expected to boost the agricultural and livestock sectors in Paraguay, providing SMEs with the necessary financing to grow their businesses, increase productivity, and contribute to the country’s economic development. This investment aligns with the OPEC Fund’s commitment to promoting food security and supporting sustainable development in its partner countries.
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