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Financial inclusion of micro, small, and medium-sized enterprises (MSMEs) holds a paramount significance in Jordan's economic landscape. These agile enterprises are the backbone of the country's business ecosystem, contributing substantially to employment and economic growth.
As part of the GIZ implemented project “Innovative approaches for the financial inclusion of MSMEs”, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), AFC has been tasked with the strategic mission to provide active technical assistance to selected financial service providers (FSPs) operating in Jordan. Our primary objective is to bolster the availability of innovative financial services for micro, small, and medium-sized enterprises (MSMEs) across the country.
In the current phase of the project, we are actively collaborating with a diverse group of FSPs, including two microfinance institutions (MFIs), a lending-based crowdfunding platform, a leasing company, and an insurance provider. Our project has a dual focus: first, to strengthen the operational capabilities of these FSPs, and second, to facilitate the design, testing, and implementation of customized financial products and services tailored specifically for MSMEs.
Our journey began in October 2022, when we had to select eight partners from a pool of 30 potential institutions. This selection process concluded in June 2023, resulting in successful partnerships with four financial service providers (PFSPs) who met the project’s key performance indicators.
Following the selection phase, AFC experts engaged in thorough work with the chosen PFSPs to gain a comprehensive understanding of the areas requiring intervention during the project. To achieve this, each expert applied a soft due diligence approach within their area of expertise. This process involved data collection, market visits, and interviews with sample businesses. Subsequently, our experts provided the PFSPs with comprehensive SWOT analyses, along with recommendations and proposed solutions for addressing identified weaknesses.
In September 2023, we conducted a pivotal workshop where the PFSPs engaged in presentations, brainstorming sessions, and breakout groups, focusing on the latest trends in MSME finance. They worked closely with our team of experts to align their work programs for the upcoming project period. The outcome was the development of draft implementation plans and a strategic policy roadmap, including marketing and go-to-market strategies. PFSPs, guided by AFC's expert feedback and their own market knowledge and research, efficiently finalized these plans and timelines.
“As we look ahead to the remaining phase of this project, our hope is to continue building on the foundation of excellence we've already established with the PFSPs. The journey so far has been marked by dedication, innovation, and collaboration. The PFSPs are committed to deliver new quality financial products and services with the Technical Assistance AFC experts are delivering. This will certainly leave an impact on the capability of MSMEs access to finance”, states the team leader Elias Tayeh.
We are enthusiastic about the prospect of continuing our collaboration with the Jordanian PFSPs throughout the project's duration. This enduring partnership reflects our strong commitment to enhancing Jordan's financial landscape. With our expertise, industry best practices, and long-term vision, we are well prepared to drive positive changes that will ultimately benefit both the PFSPs and the MSMEs they serve in Jordan. Together, we are working towards a brighter financial future for Jordan's businesses and communities.
For further information contact Vladislav.Nimerenco [at] afci.de