EBRD, Mocrofund for Women ink $2mln deal to support green economy


[18-08-2022 09:49 AM]

Ammon News - The European Bank for Reconstruction and Development (EBRD) and Jordan’s Microfund for Women (MFW) have signed a US$ 2 million Green Economy Financing Facility (GEFF), including US$ 0.5 million of co-financing from the Green Climate Fund (GCF).

The GEFF funds would be on-lend to micro, small- and medium-sized enterprises (MSMEs) in Jordan and would support the expansion of green lending to local businesses.

The GEFF is supported by the EU under its Initiative for Financial Inclusion. It would benefit from a €0.225 million grant available to the GEFF provided by the EU via its Neighbourhood Investment Platform for incentives to accelerate the adoption of climate adaptation and mitigation technologies and services by local MSMEs and households.

This partnership marks the first financing under the GEFF in Jordan and the first package offered to a microfinance institution (MFI) in the EBRD’s wider southern and eastern Mediterranean (SEMED) region under the GCF-GEFF regional framework.

Under this facility, MF?W would also benefit from comprehensive technical assistance (TC) package funded by EBRD, EU and GCF. The TC package would include an assessment of the optimal technology for better integrating climate change practices into the targeted MSMEs and households.

Technical advice would be provided on how to implement the energy investments to be adopted. The package would include sessions to educate and build MFW’s capacity in relation to climate change mitigation, adaptation technologies and gender-responsive on-lending.

EBRD Director for the eastern Mediterranean region, Philip ter Woort, said: "We are proud of our continued partnership with the Microfund for Women in Jordan and for the first time under the GCF-GEFF regional framework.

"We hope that our support would boost the competitiveness and innovation of women-led businesses and increase access to finance for more sustainable employment opportunities."

The EU Ambassador to Jordan, Maria Hadjitheodosiou, said: "Through the Green Economy Financing Facility (GEFF), the Micro-Fund for women is offering today new financing opportunities to women and youth by supporting climate change actions.

"We also see this Fund as an opportunity for Jordan to become a leader on these themes in the Arab region, where many countries have accelerated their efforts in addressing climate change and green transition but where sustainability remains a challenge."

MFW’s CEO, Lama Zawati, said "We are always grateful for our partnership with EBRD. The timing of this financing is crucial, especially after the major increase in fuel and gas prices locally and globally at a time people are searching for cheaper and greener solutions.

"As MFW, we are proud to be the first in Jordan to offer green energy loans and are witnessing the gradual yet positive increased interest in Jordan’s economy. Our clients are saving a lot on their electricity bills and this is our ultimate goal.

"With the support of the EBRD in terms of training and awareness in many green energy fields, I am confident that we will reach more people in the coming years."

MFW is a non-profit private shareholding MFI registered in Jordan. It was the first in Jordan and is the largest in terms of the number of clients (31 per cent of market share) and of the gross loan portfolio (27 per cent of market share), with total assets of US$ 124.7 million.




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