World Bank approves $50 million project to support start-ups in Jordan

AMMAN — The World Bank has approved a $50 million assistance package to Jordan to enhance access to finance for micro, small and medium enterprises (MSMEs). 

The project, approved earlier this month by the World Bank’s board of directors, “will reach out to underserved governorates and marginalised segments of society and increase financing for start-up businesses”, the bank said in a statement posted on its website.

The Jordan MSME Development for Inclusive Growth Project is a five-year undertaking “largely geared to rural parts of Jordan, where living conditions are modest at best”. 

The project will “leverage support” from Arab funds, specifically the Arab Fund for Economic and Social Development, which will provide parallel financing of $50 million, the World Bank said in the statement.

The project is expected to enhance the creation of private sector job opportunities, contributing to inclusive economic growth and supporting poverty reduction efforts.

“Over 1,500 entrepreneurs living across Jordan will directly benefit from this project. It aims at encouraging more Jordanian women and youths to start
MSMEs in Jordan, where such businesses account for 71 per cent of all employment,” the statement quoted Ferid Belhaj, director of the World Bank’s Middle East Department, as saying.

“As such, this project has tremendous potential to boost prosperity across Jordan.”

The new financing will scale up its parent project, the Micro, Small, and Medium Enterprise Development for Inclusive Growth Project ($70 million).

Over 6,000 MSMEs benefitted from that project — 59 per cent of which are located outside Amman, 85 per cent of whom were women and 47 per cent were youth-initiated, the statement said.

“MSMEs grow at faster rates once provided with sufficient funding and a conducive environment; this is why it is critical to support their growth,” the statement quoted Sahar Nasr, World Bank lead financial economist and project team leader, as saying. 

“The parent project has shown commendable success, creating jobs and sustaining economic growth. We believe that the additional financing will achieve a greater impact on the  ground through innovative financing mechanisms; outreach venues; and more effective targeting to underserved segments of society.”