Proparco CEO illustrates longstanding commitment to supporting Jordan’s development

AMMAN — The French finance institution Proparco has committed 387 million euros in loans to support the development of the private sector in Jordan since 2009, according to its CEO, Françoise Lombard.

In a recent interview with The Jordan Times, Lombard noted that the developmental outcomes of these loans were made possible by the Jordanian government’s commitment to “setting a regional example in developing bankable public-private partnerships (PPPs)”. 

The institution also “welcomes the proactive role of the government in mobilising climate investments”, she said, noting that addressing companies’ high taxation burden and facilitating their renewable energy-transition can further efforts to improve the Kingdom’s investment climate. 

Proparco, which is a subsidiary of the French Development Agency (AFD), has been promoting sustainable economic, social and environmental development for over 45 years by committing between 2 to 2.5 billion euros per year, Lombard said.

Support takes the form of various financial instruments, ranging from loans to equities, guarantees and technical assistance in developing countries and emerging economies, she added. 

In Jordan, Proparco’s projects focus on supporting energy and water efficiency, Lombard noted. 

“Proparco finances private companies whose work contributes to creating jobs and aligns with the institution’s goals to support Jordan in achieving the Sustainable Development Goals (SDGs) and combating climate change,” she said. 

Projects include financing the Disi Water Conveyance Project, four solar plants, Al Rajef Wind Farm, the Capital Bank of Jordan (CBoJ) and the fintech financing firm Liwwa, which works towards supporting Jordan’s SME fabric and creating jobs, she added. 

Proparco supports SMEs through financial intermediaries in Jordan, according to the CEO. 

“This can take the form of a green credit line, which we provide to banks or micro-finance institutions that are committed to financing renewable energy projects,” she said. 

The National Water Carrier Project, which is expected to be ready in 2027, is the largest and most critical project that Proparco is currently committed to supporting, both in terms of its financing and planning needs. In cooperation with all involved stakeholders, the institution is working to ensure the project’s success in alleviating the Kingdom’s water stress, Lombard added. 

Aside from supporting job creation and financing climate co-benefits projects, Proparco’s main strategic priorities include mobilising its funds to “promote gender equality and social inclusion through improving youth and women’s access to finance and removing inequalities”, she added. 

Additionally, Proparco’s future plans include investing in health, education and developmental projects that target more vulnerable groups like refugees, to increase their access to safe water and improve their quality of life, Lombard stated. 

She also noted that the challenges brought by the Syrian refugee crisis, “especially given the scarcity of resources in Jordan” as the second host country of refugees per capita in the world, require the global emergency response to prioritise enhancing access to basic services, including drinking water, basic sanitation and hygiene facilities, and electricity. 

Following the outbreak of the Syrian refugee crisis, the AFD developed an initiative called Minka Middle East “to support Syria’s neighbours through finance development projects that mitigate the vulnerabilities generated by population displacements and strengthen the resilience of the host countries”, she added.  

Additionally, Lombard noted that Proparco has plans to increase and diversify its level of financial commitments in the Kingdom. 

“There’s great potential in Jordan’s pharmaceutical and textile industries, but Proparco is sector-agnostic; we are open to various types of ventures as long as they align with the institution’s standards, goals and climate mandates focused on SDGs,” she said. 

Lombard also pointed out that in identifying new projects and investment opportunities, Proparco ensures that its work is aligned with Jordan’s national development priorities and agenda. 

Moreover, she said that various examples of successful national ventures and leading financial institutions, “such as the regional foot print of the CBoJ, are evidence that Jordan is a promising market with a regional role to play and the potential to be integrated into global value chains”.