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In a concerted effort to foster sustainable development and combat climate change, the European Bank for Reconstruction and Development (EBRD), along with the European Union (EU) and the Green Climate Fund (GCF), is spearheading green investment initiatives in Jordan. Through the EBRD’s Green Economy Financing Facility (GEFF), a substantial financing package has been extended to Tamweelcom, a leading microfinance institution in Jordan.
The financing package, totalling US$ 4 million (€3.6 million), includes co-financing of US$ 1 million (€ 922,000) from the GCF, as well as incentive grants from the EU. Additionally, technical assistance supported by the EBRD, EU, and GCF will complement the financial support provided.
This initiative aims to provide financial assistance to the private sector and local micro, small, and medium-sized enterprises (MSMEs) for investing in climate change mitigation and adaptation technologies and services. Tamweelcom will play a pivotal role in facilitating access to finance, particularly for sub-borrowers seeking green financing or loans for climate change-related projects.
Through the GEFF, Tamweelcom will enhance its capacity to conduct awareness-raising activities targeting both men and women. Sub-borrowers will also benefit from cash-back incentives upon the successful implementation of eligible projects.
Furthermore, a comprehensive technical cooperation package will support project preparation, implementation, and monitoring. Tamweelcom staff will receive training in gender-responsive green finance to address gender-specific obstacles in the supply and demand of financial services.
The loan agreement was formalized between Mike Taylor, EBRD Head of Financial Institutions for the Southern and Eastern Mediterranean region, and Basem Khanfar, CEO of Tamweelcom. Taylor expressed optimism about the collaboration, emphasizing its potential to boost lending to the private sector and drive investments in sustainable practices.
Thibaut Moyer, Deputy Head of Cooperation for the European Union Delegation to Jordan, underscored the EU’s commitment to advancing development cooperation and enhancing climate action through financial mobilization. He highlighted the significance of strengthening the private sector, particularly MSMEs, in driving economic development and job creation.
Basem Khanfar, CEO of Tamweelcom, emphasized the institution’s dedication to global sustainability goals and its role in providing green financing solutions. He highlighted the potential of the agreement to empower micro and small enterprises to invest in environmentally friendly practices, thereby contributing to positive environmental outcomes and climate change mitigation.
Tamweelcom, with its extensive reach and commitment to environmental and social responsibility, aims to empower entrepreneurs and improve livelihoods while fostering sustainable development.
Since 2012, the EBRD has been instrumental in providing financial support to Jordan, with a focus on private sector development. The collaboration with Tamweelcom represents a significant milestone in advancing green investments and sustainable practices in the region. |
