AFC joins forces with GIZ Jordan for the financial inclusion of MSMEs through innovative approaches

25.11.2022
Undefined

98% of companies in Jordan are micro, small and medium-sized enterprises (MSMEs), which employ around 70% of the workforce in the private sector, but their access to finance is inadequate: only ~10% of all bank loans are granted to MSMEs, which often force them to finance themselves through their own resources, limiting the growth potential.

AFC has been contracted by GIZ Jordan for the implementation of the “Innovative Approaches for the Financial Inclusion of MSMEs in Jordan: Innovative MSME Financing” project.

The overall objective of the project is to improve the access to innovative financial services for growth-oriented MSMEs in the cuntry. Particularly, AFC has the mandate to a) strengthen financial intermediaries (banks, microfinance institutions, credit companies, leasing companies and crowdfunding companies, payment service providers as well as specialised fintechs involved in MSME financing) with regard to the provision of innovative financial services for MSMEs, and b) to improve the access to financial services for women-led businesses.

The work will be done in five work packages:

  1. Research on MSME finance in Jordan: Our team will carry out an in-depth analysis of the main barriers and opportunities for MSMEs in accessing finance as well as provide an overview of existing MSME financial service offerings.
  2. Onboarding of partner financial intermediaries (PFIs).
  3. Development of innovative financial services for PFIs: Support the selected PFIs in their efforts to develop new or adapt innovative financial services tailored to the needs of MSMEs.
  4. Support the piloting of the innovative financial services at PFIs, based on the successful product prototype development; and
  5. Provide support to the Central Bank of Jordan on the implementation of supervision and regulatory practices for alternative financing products (i.e. leasing, factoring and/or crowd funding, etc.). Further, we will support the GIZ to set-up a “Digital Financial Services Challenge Fund”.

 

The overall project duration lasts from November 2022 to October 2025.

We are looking forward to our successful cooperation with GIZ towards the implementation of innovative solutions for the financial inclusion of MSMEs in Jordan.

 

For further information please contact: vladislav.nimerenco [at] afci.de ()

 

Related Articles: “Innovating access to finance for micro, small and medium-sized enterprises (MSMEs)” and “CBJ, GIZ launch micro-, SMEs financial inclusion project”