"The Central Bank of Jordan and the German Federal Ministry for Economic Cooperation and Development (BMZ) launched the “Innovative approaches for the financial inclusion of MSMEs in Jordan (I-FIN)” project to be implemented by GIZ"
The Central Bank of Jordan launched the Innovative Approaches to Financial Inclusion for Micro, Small and Medium-Sized Enterprises in Jordan project, I-FIN, in cooperation with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The project aims to support the efforts of the Central Bank of Jordan and main partners in increasing the financial inclusion of MSMEs in Jordan.
The project also aims to empower MSMEs to access and effectively use innovative financial services. Moreover, I-FIN will support MSMEs, in particular women-led businesses, with tackling the challenges they face when they seek access to funding and needed financial support. Also, the project, alongside the Central Bank of Jordan, and main stakeholders, will work to develop an appropriate legislative and regulatory environment with the purpose of improving enterprise access to funding using innovative digital finance solutions.
His Excellency, the Governor of the Central Bank of Jordan, Dr. Adel Al-Sharkas, said that this project is part of continuous efforts of the Central Bank of Jordan to broaden the efforts of increasing the financial inclusion in the kingdom in general, with a special focus on MSMEs, which are currently considered among the most important contributors to economic and social growth in Jordan, as MSMEs comprise around 99% of the companies registered in Jordan. Hence, we value the important role that MSMEs have in terms of job creation and increasing local production, and their role in alleviating unemployment, in addition to their great and effective contributions to promoting economic development and increasing the gross national income.
Dr. Al-Sharkas also pointed out that the project is in line with the future trends of financial inclusion in the Kingdom, where the Central Bank is currently focusing on developing a new national strategy for financial inclusion, in cooperation with the public and private sectors. The new strategy will have a broader scope that includes all individuals and companies, especially those with limited access to financial services, such as women, youth, refugees, and MSMEs. This strategy will be based on a set of policies and enablers, which will promote the responsible, sustainable, and comprehensive use of financial services, including credit, payment, remittances, savings and insurance services, as key pillars supported by several enablers to promote financial inclusion.
His excellency also expressed his appreciation and valuation of the Jordanian-German partnership and the long-term support that the Federal Republic of Germany offers to the Hashemite Kingdom of Jordan in many domains to bring forth the financial inclusion in the Kingdom, which achieves growth and development in Jordan.
Dr. Al-Sharkas also affirmed the Head of the Development Cooperation at the German embassy in Jordan, Ms. Kordula Mehlhart and GIZ country director Ms. Elisabeth Girrbach, in the presence of government, financial sector partners and international organizations, emphasized the importance of the ongoing partnership and cooperation between all involved parties in developing innovative financial services in a way that enables small business owners, especially women-led businesses, to grow their business and create job opportunities.
The Head of the Development Cooperation at the German embassy in Jordan, Ms. Kordula Mehlhart, welcomed the efforts of the Central Bank to enhance financial inclusion among the priorities of the government’s work in the employment sector in general. She also congratulated the governor for the active role of the Central Bank and the progress made through cooperation in the field of enhancing financial inclusion of MSMEs, highlighting that the new project will contribute to supporting these efforts by developing capacities to introduce evidence-based policies that contribute to improving small enterprise development and thereby economic development in the medium and long term.
The I-FIN project will be implemented until 2025 by (GIZ), in cooperation with the Central Bank of Jordan, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) that amounts to 10 million euros.