AMMAN: A new US$50 million assistance package to Jordan will enhance access to finance for micro, small and medium enterprises (MSMEs). The project approved today by the World Bank’s Board of Directors will reach out to underserved governorates and marginalized segments of society and increase financing for start-up businesses.
The Jordan MSME Development for Inclusive Growth Project – is a five-year undertaking that is largely geared to rural parts of Jordan, where living conditions are modest at best. This project will leverage support from the Arab funds, specifically the Arab Fund for Economic and Social Development (AFESD), which will provide parallel financing of US$50 million. Through improved financial intermediation, the project will enhance the creation of private sector job opportunities, contributing to inclusive economic growth and supporting poverty reduction efforts.
“Over 1500 entrepreneurs living across Jordan will directly benefit from this project. It aims at encouraging more Jordanian women and youth to start MSMEs in Jordan, where such businesses account for 71% of all employment,” said Ferid Belhaj, Director of the World Bank’s Middle East Department. “As such, this project has tremendous potential to boost prosperity across Jordan.”
The new financing will scale up the well-performing parent project, namely the Micro, Small, and Medium Enterprise Development for Inclusive Growth Project (US$70 million), which came at an opportune time in Jordan in the aftermath of the recent economic and political developments in the region, and the associated economic slowdown and rising unemployment and poverty. Over 6,000 MSMEs benefitted from the operation—59 percent of which are located outside Amman, 85 percent of which were women and 47 percent of were youth-initiated.
