US$2 million loan to “Microfund for Women”
The EBRD is providing up to US$ 2 million in local currency to the “Microfund for Women” (MfW) for on-lending to female entrepreneurs in Jordan.
Acces to finance to micro small and medium enterprises (MSME’s) through banks remains extremely limited in Jordan, a country which is particularly exposed to the refugee crisis in the Middle East triggered by the civil war in neighbouring Syria.
The EBRD financing will offer much-needed support for micro, small and medium-sized enterprises (MSMEs) and contribute to greater financial inclusion and employment opportunities in Jordan, specifically for women and for people living in less advantaged regions. Donor-funded support will specifically address needs by refugees who venture into business.
MfW is the largest microfinance institution in Jordan and an important player in the development of female entrepreneurship and support for refugees. Since 2016, the fund has extended loans to Syrian refugees who currently represent 20 per cent of Jordan’s population and not been served by any other micro finance institution in Jordan.
Technical cooperation funds provided to MfW by the SEMED Multi-Donor Account and EBRD Shareholder Special Fund will strengthen its institutional and skills development in refugee lending.
Heike Harmgart, Head of the EBRD office in Jordan, said: “We are very pleased to team up again with MfW in support of women entrepreneurs and Syrian refugees. This investment is the first to a financial institution under the EBRD Refugee Response and we hope it will promote lending to refugees and contribute to greater
Jordan became an EBRD shareholder in 2012 and to date the Bank has committed €900 million across 35 projects in various sectors of the economy, in addition to US$ 120 million of trade facilitation credit lines with local banks.
MfW is a privately-owned, non-profit MFI registered in Jordan. It is the largest in the country as measured by the number of clients (30 per cent of market share) and the second largest by gross loan portfolio (13 per cent of market share), with total assets of US$ 47.3 million. MFW is currently serving 129,164 clients (661 active refugee borrowers) through 55 branches, 38 of which are located outside Amman