European Union, Proparco and Tamweelcom join efforts to support small businesses in Jordan

Nearly 75% of the financing needs of Jordanian MSMEs are not met by the commercial banking system. Since 1999, Tamweelcom has been extending loans to these essential players in the Jordanian economy, especially to the most underserved segments, with 80% women clients and 70% from rural areas. It is now the second largest microfinance institution in Jordan.

The JOD 3.64 million loan granted to Tamweelcom by Proparco, subsidiary of the French development bank AFD, will fund more than 500 microcredits and create or maintain 400 jobs.

This operation supports the country's MSME fabric and, thus, promotes economic and social cohesion in Jordan in a regional context of chronic crises. It also contributes to the Sustainable Development Goals (poverty eradication, economic growth, and reduction of inequalities). This project is part of Proparco's broader commitment to the Jordanian financial sector, as demonstrated by its partnership with Capital Bank of Jordan and the fintech liwwa.

The transaction was made possible thanks to the EU SME MENA facility, a facility funded by the European Union in order to facilitate lending in local currency and provide incentives to financial intermediaries to reach SMEs and the most under-served segments of the economy.  

“Micro, Small, and Medium-Sized Enterprises serve as the backbone of a resilient economy. The European Union is steadfast in its commitment to support and bolster these enterprises in Jordan, working hand in hand with them towards a more prosperous future. We are delighted to collaborate with Tamweelcom and Proparco in pursuit of this shared objective,” said Hanina Ben Bernou, Attaché at the Delegation of the European Union to the Hashemite Kingdom of Jordan.

"This credit line will allow us to continue serving small businesses, especially from vulnerable categories of the population, which are those with the greatest need for financing in Jordan. Thanks to this loan, we will achieve ambitious impact results," said Basem Khanfar, CEO of Tamweelcom.

"We are honored to be working with Tamweelcom, a major microfinance institution in Jordan and pioneer in the field of social performance, client protection and anti-money laundering. This new project proves once again Proparco's commitment to the private sector and financial inclusion in the MENA region," said Sarah Morsi, Regional Director of Proparco for the Middle East.

About the European Union’s SME MENA Facility

The objective of the EU’s SME MENA Facility is to increase local banks’ lending to SMEs, in order to improve access to finance for SMEs on a sustainable basis. It amounts to 24 M€ (EU contribution) and is part of the “EU Initiative for Financial Inclusion” which was created in 2016 to expand financing to micro, small and medium-sized Enterprises (including support to innovative start-ups). The initiative for Financial Inclusion provides a response to concrete needs of MSMEs in the southern Mediterranean countries. It aims at facilitating access to finance for MSMEs and start-ups, in order to create jobs and contribute to economic growth, focusing in particular on women and youth-lead MSMEs as well as MSMEs operating outside of the main urban areas.

For further information: https://south.euneighbours.eu/project/mena-guarantee-facility/

About Tamweelcom

With adoption of the vision of providing responsible finance and the aim of reducing poverty, unemployment and improving the social & economic level for productive and low income financially excluded individuals, the Jordanian Microfinance Company (Tamweelcom) was established in 1999 as a non-profit company owned by Noor Al-Hussein Foundation that operates independently under the umbrella of the King Hussein Foundation. Today and after many milestones, Tamweelcom has become one of the most important institutions concerned with microfinance in the region serving more than 95,000 male and female clients from the north of the Kingdom to its south.

Tamweelcom provides the required finance for productive and low-income individuals who are bank excluded by providing various financial products, solutions and services that are responsible within international standards and align with digital transformation strategy, so that they seek to ensure success and financial inclusion for all, by preparing and providing various financing programs, products and services to support their personal or commercial needs. Tamweelcom aims to support this category of customers to improve their standard of living, support and develop their financial situation and give them the opportunity to be productive people in society, in order to contribute to reducing the unemployment rate, improving the standard of living and constructively contributing to supporting and revitalizing the economic wheel in the Kingdom.