The European Investment Bank (EIB), an institution of the EU, recently lent EUR 2.7 million (USD 3.3 million) to Microfund for Women (MFW) to be on-lent for microenterprise in Jordan. These loans are intended to support 9,100 people, 90 percent of whom are women, whose livelihoods have been threatened by the effects of the COVID-19 pandemic. EIB drew the funds from the Southern Neighborhood Microfinance Facility (SNMF), which has assets of EUR 71.3 million (USD 86.5 million) and is intended to encourage microfinance in Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia.
H E Maria Hadjitheodosiou, the EU ambassador to Jordan, said that “this project reflects the European Union’s commitment to supporting partner countries, such as Jordan, addressing the impact of the COVID-19 pandemic and at the same time fostering women’s empowerment in Jordan, by helping them achieve sustainable livelihoods for themselves and their families, alongside other women empowerment projects supported by the European Union.”
MFW is a nonprofit that was founded in 1996 and serves 124,000 active borrowers. MFW offers microinsurance as well as loans for home improvement, maternity expenses, retirees’ expenses and women who operate home-based businesses. This last type of loan ranges in size from from JOD 400 (USD 560) to JOD 1,000 (USD 1,410) with terms ranging from 12 months to 22 months. The microlender also provides non-financial services such as university scholarships and training on business development, women’s health and women’s rights. Recent financial data on MFW are not available.
EIB, founded in 1958, is “focused on innovation, SMEs, infrastructure and climate,” primarily in EU member states and potential future member states. In addition to funding, the institution “adds value in project implementation and the modernisation of public policies thanks to its technical and financial expertise and advisory services.” During 2019, the institution disbursed EUR 48 billion (USD 57 billion), about 90 percent of which it deployed within the EU.
By Steffi Ong, Research Associate
Sources and Additional Resources
EIB press release
https://www.eib.org/en/press/all/2021-049-team-europe-eib-and-mfw-support-jordanian-micro-entrepreneurs-with-eur-2-7-million
MFW homepage
https://www.microfund.org.jo
Team Europe announcement
https://eeas.europa.eu/headquarters/headquarters-homepage/77470/%E2%80%9Cteam-europe%E2%80%9D-global-eu-response-covid-19-supporting-partner-countries-and-fragile-populations_en
EIB southern neighbourhood initiative webpage
https://www.eib.org/en/press/all/2016-164-new-eib-initiative-to-help-europes-southern-neighbourhood-and-western-balkans-endorsed-by-eu-leaders.htm
More News on EIB from MicroCapital
https://www.microcapital.org/?s=EIB
More News on MFW from MicroCapital
https://www.microcapital.org/?s=MFW
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: FINCA Microfinance Jordan, JOHUD Partner to Fund Community Businesses
- SPECIAL REPORT: Increasing Financial Access for Women with Better Data, Mentoring, Staff Training, “Gender-smart” Audits
- MICROCAPITAL BRIEF: EU Guaranteeing $113m to Support $490m in Lending by EBRD to MSMEs in Eastern Europe, North Africa, Western Asia
- MICROCAPITAL BRIEF: CEB, EU Expand Roma Housing Microfinance, Financial Inclusion Program to Bulgaria
- SPECIAL REPORT: Banco FIE of Bolivia Takes $100k “Financial Inclusion that Works for Women” European Microfinance Award 2022
