MICROCAPITAL BRIEF: FMO Guarantees $1.5m in Microlending by Tamweelcom of Jordan to Refugees from Syria via Nasira Program

The Dutch development bank, which is known by the acronym FMO, recently committed to a risk-sharing facility of up to USD 1.5 million to support Tamweelcom, a Jordan-based microfinance organization, in funding entrepreneurship among refugees from Syria. Tamweelcom will make loans of JOD 1,000 (USD 1,440) to JOD 7,000 (USD 9,900) to the refugees to put towards income-generating businesses. To be eligible, borrowers must hold identification from both the UN High Commissioner for Refugees and the Jordanian Ministry of the Interior.

The facility is part of the pilot phase of FMO’s Nasira program, which “supports young, female and migrant entrepreneurs in Sub-Saharan Africa and countries neighbouring Europe” by providing guarantees to local banks to mitigate the risks of lending to underserved entrepreneurs. Specifically, the program reimburses lenders to the extent that they lose more than 10 percent on their loans to the target groups.

Established in 1999, Tamweelcom operates 38 branches. As of 2017, it reported total assets of USD 71.3 million, a gross loan portfolio of USD 62.4 million and 87,650 active borrowers. Tamweelcom does not accept deposits.

Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private sector institutions. The bank works toward the UN’s sustainable development goals by funding capacity development as well as placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of 2018, the bank reported a portfolio of EUR 9.6 billion (USD 10.8 billion).

By Jolene Khor, Research Associate

Sources and Additional Resources

FMO news: “FMO Launches First Risk Sharing Facility for Syrian Refugees in Jordan”
https://www.fmo.nl/news-detail/5965ffec-4d69-47ee-892b-3167b5ecd523/fmo-launches-first-risk-sharing-facility-for-syrian-refugees-in-jordan

RUFI Crosses Border with Refugees from South Sudan, Opens Doors in Uganda; Breaking MFIs’ Stereotypes About Victims of Conflict
https://www.microcapital.org/special-report-rufi-crosses-border-with-refugees-from-south-sudan-opens-doors-in-uganda-breaking-mfis-stereotypes-about-victims-of-conflict-insights-from-european-microfinance-week/

Tamweelcom homepage
http://www.tamweelcom.org/

MIX Market profile: Tamweelcom
https://www.themix.org/mixmarket/profiles/tamweelcom

FMO financial reports
https://www.fmo.nl/about-us/reports

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