MICROCAPITAL BRIEF: Development and Employment Fund (DEF) of Jordan Offers $5m in Grants to Microfund for Women (MFW), Ahli Microfinance Company (AMC)

The Development and Employment Fund (DEF), a provider of retail and wholesale microfinance services backed by the Jordanian government, reportedly has offered grants totaling JOD 3.5 million (USD 5 million) to the Microfund for Women (MFW) and the Ahli Microfinance Company (AMC), two microfinance providers in Jordan. Nonprofit MFW will receive a donation of JOD 1.5 million (USD 2.1 million) and AMC will receive JOD 2 million (USD 2.9 million) to extend loans to small and medium-sized enterprises. The funds are part of the USD 30 million DEF received from the Arab Fund for Social and Economic Development of Kuwait to support microfinance organizations and small income-generating businesses. The Arab Fund, a development finance institution with 21 member states and territories, reports shareholders’ equity of KWD 2.67 billion (USD 9.5 billion) as of 2010.

As of June 2012, DEF reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 82 million, 27,200 active borrowers, 0.34 percent return on assets and 0.41 percent return on equity. As of December 2011, MFW has USD 26.5 million in assets, a gross loan portfolio of USD 30 million, return on assets of 8.15 percent and return on equity of 15.1 percent. As of March 2012, AMC has total assets of USD 9 million, 16,400 active borrowers, 7.9 percent return on assets and 9.5 percent return on equity.

By Mihaela Grindeanu, Research Associate

About Microfund for Women: Microfund for Women is a nonprofit Jordanian microfinance institution that serves poor entrepreneurs. As of December 2011, the company has 72,000 active clients, 97 percent of which are women. As of December 2011, MFW has USD 26.5 million in assets, return on assets of 8.15 percent and return on equity of 15.1 percent.

About Ahli Microfinance Company: Ahli Microfinance Company (AMC) was created in 1999 by its parent company, Jordan Ahli Bank. AMC is a profit-making enterprise targeting low-income entrepreneurs in Jordan and other Middle Eastern countries. As of March 2012, Ahli reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 9 million, a gross loan portfolio of USD 8 million, 16,400 active borrowers, 7.9 percent return on assets and 9.5 percent return on equity.

About the Development and Employment Fund: The Development and Employment Fund of Jordan (DEF) started its operations in February 1991 under the umbrella of the Industrial Development Bank of Jordan. It became independent of that institution in 1992 but remains a government-backed institution. Through its 12 branches, DEF offers loans, technical and administrative to small- and medium-sized enterprises as well as wholesale funding to microfinance institutions. As of June 2012, DEF reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 82 million, 27,200 active borrowers, 0.34 percent return on assets and 0.41 percent return on equity.

Sources and Additional Resources:

Jordan Times story: “Development fund extends JD3.5M to microfinance groups”, http://jordantimes.com/development-fund-extends-jd35m-to-microfinance-groups

MicroCapital story, July 27, 2012: “MICROCAPITAL BRIEF: Planning Minister of Jordan Meets Microfinance Representatives”,https://www.microcapital.org/microcapital-brief-planning-minister-of-jordan-meets-microfinance-representatives/

MicroCapital story, June 4, 2012: “MICROCAPITAL BRIEF: Microfund for Women Offers Health Insurance Coverage to Microfinance Borrowers’ Families in Jordan”, https://www.microcapital.org/microcapital-brief-microfund-for-women-offers-health-insurance-coverage-to-microfinance-borrowers-families-in-jordan/

MicroCapital Universe Profile: Microfund for Women, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfund+for+Women

MicroCapital Universe Profile: Ahli Microfinance Company, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ahli

MicroCapital Universe Profile: Development and Employment Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Development+and+Employment+Fund

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