FMO supporting women and young entrepreneurs in Jordan
Dutch development bank FMO has agreed to provide a long-term loan of JOD 5 million (approximately USD 7 million) to SME-lender SANADCOM, a spin-off company of Microfund for Women, Jordan's leading privately owned Microfinance Institution. The investment is made through the MASSIF fund, which is managed by FMO on behalf of the Dutch government. The investment fits further efforts and activities of the Dutch Government to support economies in the MENA region, specifically in countries which deal with a strong influx of refugees.
A portion of this SME loan is reserved for women and young entrepreneurs. These entrepreneurs are key to creating much needed inclusive economic growth in Jordan, which has received well over one million refugees from Syria in recent years.
While offering the largest potential in terms of volume and combatting unemployment, small and medium enterprises (SMEs) have been identified as a strongly underserved market segment in Jordan. By targeting SMEs in both growing and underbanked areas of Jordan, SANADCOM supports job creation where it matters most. In addition to financing, SANADCOM provides technical assistance to help SMEs develop skills in areas such as bookkeeping and marketing.
"MASSIF provides financial and non-financial resources to small businesses and micro-entrepreneurs by supporting local financial intermediairies and institutions that can contribute to their development. The Fund invests in low income countries and fragile and conflict-affected states with special focus towards rural areas, women, youth and companies that are developing new innovative products and services for the so-called 'Base of the Pyramid'. Supporting SANADCOM is an important step for the Fund to further support entrepreneurs in this conflict affected part of the world', explains Mr. Jeroen Harteveld, Fund manager of MASSIF.
"SANADCOM General Manager Mr. Raed S. Qafiti said: "I strongly believe that this term loan will give SANADCOM the opportunity to offer competitive financing for small and medium enterprises in Jordan to help alleviate poverty; empower women and young entrepreneurs who have limited access to finance, support and sustain their own businesses, which in turn will contribute in creating new jobs and supporting the national economy."
SANADCOM was founded in May 2017 as a specialized and SME-focused spin-off of Microfund for Women, building on that Microfinance Institution's experience in serving Jordan's SMEs.