Baku, Azerbaijan, April 7. The European Bank
for Reconstruction and Development (EBRD) and Jordan’s Microfund
for Women (MFW) have signed a $4 million Green Economy Financing
Facility (GEFF), which includes $1 million in co-financing from the
Green Climate Fund (GCF), Trend reports.
This facility will support the expansion of green lending to
micro, small, and medium-sized enterprises (MSMEs) in Jordan,
particularly startups.
Jordan’s financial sector has limited green financing options,
and this new funding aims to build capacity for green lending,
promoting climate-change mitigation and adaptation investments. The
facility is expected to help create a demand-driven market for
technologies and services that support Jordan’s green economy.
This is the second collaboration between the EBRD, the EU, and
the GCF with MFW, following a $2 million loan in 2022 aimed at
supporting underserved MSMEs, especially those led by women. The
new agreement also includes technical cooperation to enhance MFW’s
capacity in climate change mitigation, adaptation technologies, and
gender-responsive lending.
The EBRD will provide further support through its Advice for
Small Businesses programme, which will assist MFW beneficiaries
with marketing, financial management, and compliance with
regulations.
MFW, Jordan’s largest microfinance institution, operates 63
branches, including 45 outside the capital Amman, and serves over
120,000 clients. Since 2012, the EBRD has invested over 2.3 billion
euros in Jordan through 75 projects, including significant funding
for the energy sector.