Development projects are often carried out within an integrated framework, whereby funded activities cover more than one sector. This approach is especially common in rural areas, or when initiatives involve a large number of small-scale sub-projects.
While OFID will often finance a specific element of a multi-sectoral project – such as the roads component of an integrated rural development project – occasionally its contribution covers activities in more than one sector. Over the years, OFID has also channeled considerable support to national social investment funds. These are especially prevalent in the Latin America and Caribbean region, but in recent times have seen a growing presence elsewhere. Such initiatives are usually demand-driven at a local level with a strong element of community participation and a measurable impact on the ground. As such, they fit well with OFID’s commitment to “people-centered” development. As of December 31, 2012, cumulative approvals for multi-sectoral projects stood at US$396m.
In 2012, OFID provided some US$3.4m in financing for projects of a multi-sectoral nature. The bulk of this comprised a public sector loan of US$3m for the Economic Development Fund of Djibouti. The remainder was delivered in grant assistance for three community-based initiatives in Palestine.