Development projects sometimes embrace more than one sector. This can be the case if the focus is a broader, integrated initiative, where the funding is broken down into separate amounts for a number of small-scale sub-projects. Another reason for a multi-pronged approach can be strategic linkages between two or more specific sectors.
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 is directed at activities in more than one sector.
In terms of speed of implementation and impact, OFID believes firmly in the efficacy of national social investment funds, which represent an effective channel for reaching the poor and vulnerable. Social fund projects cover a wide variety of sectors, are usually demand-driven at a local level and have a strong element of community participation. As such, they fit well with OFID’s commitment to people-centered development. As of December 31, 2013, cumulative approvals for multi-sectoral projects stood at US$837.9m.
In 2013, OFID provided some US$241.9m in financing for projects targeting more than one sector. The bulk of this comprised a US$200.0m increase in the ceiling of an existing trade finance participation scheme with the International Islamic Trade Finance Corporation, under which support is going primarily to transactions supporting the energy and agriculture sectors.
Through the public sector window, loans went to:
The remaining US$0.5m was delivered in grant assistance for a series of community-based initiatives in Palestine.