SMEs financial inclusion – Role of Banks and Credit Guarantee schemes

Amman, August 24 - Under the patronage of Dr. Jawad Anani, Deputy Prime Minister and Minister of Industry and Trade, a one-day high-level seminar was organised by the Association of Banks and the Jordan Enterprise Development Corporation (JEDCO) in collaboration with the Enhancement of the Business Environment in the Southern Mediterranean project (EBESM). The seminar discussed reforms needed to enhance financial inclusion for Jordanian MSMEs (micro, small and medium enterprises).

Policymakers (Central Bank of Jordan, Ministry of Finance, Ministry of Industry and Trade, Ministry of Planning and International Cooperation, etc.), financial institutions (Jordan Loan Guarantee Corporation, Association of Banks), bankers (Arab International Islamic Bank, Ahli Bank, Housing Bank, etc.), representatives of the private sector (Chamber of Industries, JEDCO, Employment and Development Fund, etc.), think tanks, academia and of civil society from Jordan as well as entrepreneurs and EU experts discussed solutions to enhance access to finance for Jordanian businesses. This seminar allowed as well for the presentation of the “Access to Finance Database at JEDCO”, a project funded by the MENA Transition Fund and implemented by EIB.

Based on real-life experience of entrepreneurs as well as on the results of the EBESM study  entitled “Assessment of Jordanian Policies to Facilitate Access to Finance for MSMEs” , 60 seminar participants debated how to overcome the obstacles and challenges that hinder MSMEs access to finance in Jordan. They discussed the policies and the measures needed to overcome these challenges and help SMEs to grow, to be more competitive and thereby create jobs. Actionable recommendations were formulated during the seminar, including on public policies, regulatory mechanisms and an enabling environment to enhance financial inclusion for MSMEs in the country.

The Jordanian seminar participants produced concrete proposals, finding tangible and sustainable solutions to develop its MSMEs sector. MSMEs are the backbone of the Jordanian economy, key drivers of growth, facilitating poverty reduction via job creation.

 

Stakeholders agreed to Workshop outcomes and possible future intervention as follows:

 

  1. Enhancing public/private cooperation and organisation, by establishing a focal point to support MSMEs ; by building more efficient and effective outreach cooperation for stakeholders to disseminate information to end beneficiaries.
  2. Continuing to work on the legal, policy and enabling environment (example, Moveable Assets Law)
  3. Developing a Sharia’ compliant Loan Guarantee Scheme

This seminar is the third of a series of national seminars that will be conducted by EBESM in the MED region focusing on the topic of Access to Finance. It benefited from an important media coverage including:

http://petra.gov.jo/Public_News/Nws_NewsDetails.aspx?Menu_ID&Site_Id=1&lang=1&NewsID=266670&CatID=18

http://royanews.com/local-economies/55-local-sp-263/43836-2016-08-28-13-51-16

For further reading, please download the following documents.

A2F National Seminar for Jordan programme EN
Jordan Session EN
Credit Guarantee Funds EN
EBSEM A2F Key findings Jordan EN