MICROCAPITAL BRIEF: Grameen-Jameel Microfinance to Loan $2m Each to Microfund for Women of Jordan, Al Majmoua of Lebanon

Grameen-Jameel Microfinance Limited, a nonprofit Cyprus-based joint venture of the US-based Grameen Foundation and the Saudi Arabia-based nonprofit Abdul Latif Jameel Community Initiatives, recently declared that it will loan USD 2 million each to Microfund for Women (MFW), a microfinance provider in Jordan, and Al Majmoua, a Lebanese nongovernmental organization (NGO) that lends to microenterprises. The transaction is intended to help MFW and Al Majmoua enhance their microfinance operations by serving approximately 3,500 new households.

Al Majmoua reports to the US-based nonprofit data provider Microfinance Information Exchange (MIX) USD 33.4 million in assets, return on assets (ROA) of 7.25 percent and return on equity (ROE) of 12.95 percent as of 2012 and an outstanding loan portfolio of USD 33 million and 39,000 active borrowers as of March 2013. The institution does not accept deposits. As of December 2012, MFW reported to MIX that it has 81,000 active borrowers, 96.7 percent of whom are women, USD 38.7 million in assets, return on assets of 3.91 percent and return on equity of 9.23 percent. The institution does not accept deposits.  As of June 2013, Grameen-Jameel reported providing financial guarantees totaling approximately USD 24 million that have facilitated local-currency financing of USD 53 million.

By Tejas Jain, Research Associate

About Microfund for Women
Microfund for Women (MFW) is a nonprofit microfinance institution in Jordan that was created in 1994 as a program of UK-based NGO Save the Children. In 1996, it began operating as an NGO named the Jordanian Women’s Development Society (JWDS). Its name was changed in 1999 to Microfund for Women (MFW). MFW also offers microinsurance products such as the Caregiver Policy (Ri’aya in Arabic) in partnership with Women’s World Banking (WWB), a US-based nonprofit microfinance network. Caregiver is a private health insurance scheme intended mainly for women that serves 91,000 people as of December 2012 As of December 2012, Microfund for Women has total assets of USD 38.7 million, a gross loan portfolio of USD 36.2 million, 81,000 borrowers, return on assets (ROA) of 3.91 percent and return on equity (ROE) of 9.23 percent. MFW does not accept deposits.

About Al Majmoua
Al Majmoua, also known as the Lebanese Association for Development, is a nongovernmental organization (NGO) that was launched as a microcredit program in 1994 by Save the Children, a UK-based nonprofit organization. Now an independent organization, Al Majmoua aims to contribute to the well-being of low-income Lebanese people by offering them tools to become financially independent. As of year-end 2012, Al Majmoua reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 33.4 million in assets, return on assets (ROA) of 7.25 percent and return on equity (ROE) of 12.95 percent. As of March 2013, Al Majmoua reports an outstanding loan portfolio of USD 33 million and 39,000 active borrowers. The institution does not accept deposits.

About Grameen-Jameel
Grameen-Jameel Microfinance was established in 2003 and was incorporated in 2007 as a joint venture of the US-based Grameen Foundation and the Abdul Latif Jameel Community Initiatives, a subsidiary of Saudi Arabia-based Abdul Latif Jameel private limited. The company forms partnerships primarily with Arab microfinance institutions (MFIs), which it supports by providing loans for early-stage MFIs and guarantees for MFIs seeking to access local-currency commercial loans. As of June 2013, Grameen-Jameel reported working in Egypt, Jordan, Lebanon, Morocco, Palestine, Syria, Tunisia, Turkey and Yemen, providing financial guarantees totaling approximately USD 24 million that have facilitated local-currency financing of USD 53 million.

Sources and Additional Resources:

The Jordan Times: “Grameen-Jameel supports microfinance sector in Jordan, Lebanon”
http://jordantimes.com/grameen-jameel-supports-microfinance-sector-in-jordan-lebanon

MicroCapital Story, January 8, 2014, “European Bank for Reconstruction and Development (EBRD) Loans $4m to Microfund for Women (MFW) of Jordan to Support Onlending to Female Entrepreneurs”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-4m-to-microfund-for-women-mfw-of-jordan-to-support-onlending-to-female-entrepreneurs/

MicroCapital Story, June 12, 2013, “Sanad Fund for MSME to Loan $2m to Al Majmoua of Lebanon for Microenterprises”
https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-to-loan-2m-to-al-majmoua-of-lebanon-for-microenterprises/

MicroCapital Story, January 15, 2013, “responsAbility Social Investments Loans $1.5m to Al Majmoua (Lebanese Association for Development), $10m to Araratbank of Armenia,”
https://www.microcapital.org/microcapital-brief-responsability-social-investments-loans-1-5m-to-al-majmoua-lebanese-association-for-development-10m-to-araratbank-of-armenia/

MicroCapital Story, April 5, 2012, “Grameen-Jameel Loans $1.5m to Jordan Micro Credit Company (Tamweelcom)”
https://www.microcapital.org/microcapital-brief-grameen-jameel-loans-1-5m-to-jordan-micro-credit-company-tamweelcom/

MicroCapital Universe Profile: Grameen-Jameel
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen-Jameel

MicroCapital Universe Profile: Grameen Foundation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation

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

MicroCapital Universe Profile: Al Majmoua
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Al+Majmoua

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