Jordan Times
Friday, December 14, 2007
National Impact and
Microfinance market study launched
AMMAN (JT) - The National Impact and Market Study of the Microfinance Sector in
Jordan was launched on Thursday, to provide microfinance institutions, public
donor agencies and the government with quantitative and qualitative information
regarding the impact of participation in microfinance programme on both micro-
enterprise development and household poverty levels.
Deputising for Her Majesty Queen Rania, Minister of Planning and International
Cooperation Suhair Al-Ali launched the study, which was implemented by PlaNet
Finance and funded through the French Agency for Development (AFD) upon a
request and sponsorship by the Ministry of Planning and International
Cooperation.
In her opening remarks, Al-Ali noted that the Queen has been championing the
development of the microfinance sector in the Kingdom, according to a Planning
Ministry statement.
She said the government has continuously supported this sector so it can
contribute more effectively to generating employment opportunities and improving
livelihood of Jordanians, in line with the National Strategy for Microfinance.
Al-Ali highlighted the government’s efforts to scale up activities of
microfinance institutions (MFIs), which include ongoing coordination with a
number of donors to provide concessional long-term financing to MFIs in order to
allow them to expand their geographical outreach and diversify their product
range.
Al-Ali also noted that the ministry has provided a JD5 million grant in
wholesale funding for the Development and Employment Fund to be lent to several
MFIs that are operating on a sustainable basis with the primary aim of expanding
their services into rural areas and promoting business startups.
In addition, the minister highlighted some of the study’s key findings,
referring in particular to the impact of micro-loans on the lives of clients,
through improving the quality and quantity of food, education levels and health.
She noted that the government will carefully consider the findings of the study
to reach targeted segments and women in remote areas, and work with MFIs to
diversify their products and services.
Al-Ali confirmed that the government will continue to support this vital sector,
and work to develop an appropriate regulatory framework to provide incentives to
successful MFIs, including the establishment of a credit bureau.
Carried out from November 2006 to September 2007, the study, surveyed 1,314
individuals, 67.3 per cent of them women.
The study sample was selected based on the geographic distribution of
microfinance services in various governorates, as well as the market share of
each MFI.
The study revealed that Amman has the highest percentage of microfinance clients
(44.3 per cent).
Several diplomats, representatives of international donor organisations,
governmental institutions, commercial banks and the private sector, in addition
to board members and general managers of MFIs attended yesterday’s launch.