In its continued support of Jordan’s development efforts, France’s Agency for Development (AFD) loaned EUR 3 million (USD 4.7 million) to commercial bank Société Générale de Banque – Jordanie. The Jordanian bank plans to re-lend the capital to microfinance institutions (MFIs) Tamweelcom and Middle East Microcredit Company (MEMCO), allocating USD 2.8 million to Tamweelcom and USD 1.9 million to MEMCO. AFD’s financing is intended to help expand the geographical outreach of microfinance in Jordan, and to develop new microfinance products and services.
The planned investment in Tamweelcom comes in the wake of a EUR 4 million (USD 5.9 million) loan to Tamweelcom from Spain’s Agency for Cooperation and Development in February 2008.
Based in Amman, Société Générale de Banque-Jordanie is the Jordan-based subsidiary of French commercial bank Société Générale Group (SG). Parent company SG makes loans to commercial MFIs in Jordan, Morocco, Tunisia, Benin, Burkina Faso, Ghana, Madagascar, Senegal, Russia, and Romania. SG’s total investment in MFIs is estimated to be between $ 62.5 million and $125 million (p.64).
Société Générale de Banque-Jordanie was established in 2000 after Société Générale Group acquired Middle East Investment Bank. As of year-end 2006 the Jordanian subsidiary held JOD 162.8 million (USD 230 million) in total assets, of which JOD 96.3 million (USD 136.1 million) was attributed to direct credit facilities (p.3). The bank experienced return on assets of 2.01 percent and a debt-equity ratio of 545.76 percent, as calculated from its financial statements.
Founded in 1999, Amman-based Tamweelcom is a for-profit, non-bank financial institution that provides loans to predominately female entrepreneurs throughout Jordan. As of December 2007, the MIX Market reports that Tamweelcom held a gross loan portfolio of USD 11.6 million, total assets of USD 13.4 million, and a debt-equity ratio of 189.2 percent. As of December 2006, Tamweelcom’s return on assets was 5.80 percent. With 31,000 clients, Tameelcom serves the most individuals out of the seven MFIs operating in Jordan. Its client base represents 30 percent of the sector’s 105,000 clients. Tamweelcom received an A- from French rating agency Planet Rating for its 2006 fiscal year.
MEMCO is a Limited Liability Company that has provided microloans to entrepreneurs since its inception in 1998. Based in Amman, it served 9,500 clients in 2007, nearly double the number of clients served in 2006. At December 2007, MEMCO held a gross loan portfolio of USD 10.9 million, total assets of USD 11.6 million, a debt-equity ratio of 70.67 percent, and return on assets of 8.89 percent. Rating information on MEMCO is not available.
By Ryan Benson, Research Assistant
Additional Resources:
French Agency For Development Support Microfinance Sector, June 23, 2008.
The Jordan Times: Spain extends 9m euros to microfinance companies, By Hana Namrouqa, June 25, 2008.
France’s Agency For Development: Home
Tamweelcom: Home
MIX Market: Tamweelcom
MIX Market: MEMCO
Spain’s Agency For Cooperation and Development: Home
Société Générale Group – Home
Société Générale de Banque – Jordanie: 2006 Financial Statements
Société Générale Group: History
Planet Rating: Home
ING “A Billion to Gain? A study on global financial institutions and microfinance,” February, 2006
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