EBRD, EU and GCF boost access to green finance for micro and small businesses in Jordan

This article is brought to you in association with EBRD.

• EBRD, EU and GCF lend US $4 million loan to Jordan’s Microfund for Women (MFW)
• Package marks second Green Economy Financing Facility to MFW
• Loan to increase green financing to underserved businesses, particularly those led by women

The European Bank for Reconstruction and Development (EBRD) and Jordan’s Microfund for Women (MFW) have signed a US$ 4 million Green Economy Financing Facility (GEFF), including US$ 1 million of co-financing from the Green Climate Fund (GCF).

The new facility to MFW is under the GCF-GEFF regional framework in Jordan, supporting the expansion of green lending to micro, small and medium-sized enterprises (MSMEs). These funds will help startups expand their businesses and promote their products and services on a larger scale within their communities.

Jordan’s financial institutions offer limited provision of green financing and technical assistance on investments targeting climate change mitigation and adaptation. The new funding for MFW will build capacity for green lending and contribute to the creation of a demand-driven market for investments in high-performance technologies and services that can support the green economy in Jordan.

This is the second loan that the EBRD, European Union and GCF have provided to MFW, following a US$ 2 million facility in 2022 that aimed to extend green finance to the most underserved MSMEs in the country, particularly those led by women.

Under this new facility, MFW will also benefit from a comprehensive technical cooperation (TC) package funded by the EBRD, European Union and GCF for capacity building, implementation and monitoring of the programme. The package will include awareness-raising sessions to build MFW’s capacity in relation to climate change mitigation, adaptation technologies and gender-responsive on-lending.

The EBRD will also provide TC under its Advice for Small Businesses programme to support entrepreneurs from MFW’s pool of beneficiaries, as well as other business owners with the know-how, to enhance their growth and sustainability, with a focus on areas including marketing, financial management and compliance with government regulations.

Matteo Patrone, the EBRD’s Vice President for Banking, said: “We are delighted to continue our partnership alongside the EU and GCF to support the Microfund for Women in Jordan – for the second time under the GEFF regional framework. We are proud to see the success stories achieved with the great support of MFW in promoting women-led businesses through access to finance and capacity building, which is important in boosting the growth of small businesses from different cities in Jordan.”

MFW’s CEO, Maha al-Said, commented: “We deeply value our long-term partnership with the EBRD and have seen first-hand the positive outcomes it has had on the lives of our beneficiaries and their projects through the Green Energy Loan [Taqati Loan]. We are thrilled that this new collaboration will extend these benefits even further, especially in light of Jordan’s limited energy resources.”

MFW is the largest microfinance institution in the Jordanian market, serving more than 120,000 clients through its 63 branches, of which 45 are located outside the capital Amman.

Since the start of its operations in Jordan in 2012, the EBRD has invested over €2.3 billion across 75 projects, providing more than €815 million to projects in the country’s energy sector through 14 loans.