Jordan Times
Tuesday, February 26, 2008

Queen highlights power of microfinance, tours FINCA Jordan microbusinesses

AMMAN (JT) - Her Majesty Queen Rania on Monday paid a surprise visit to eight FINCA Jordan microfinance clients, who operate small businesses in Zeziya, to demonstrate her ongoing support for the power of microfinance to improve the lives of families in Jordan and in other developing countries around the world.

Queen Rania, who brought the expertise and finances of FINCA International to Jordan, announced the expansion of FINCA to Jordan during the launch of an international campaign last May.

FINCA Jordan’s programme, which was officially launched in November last year, has three branches located in Abdali, Hitteen and Zarqa, and now, its first market office in Zeziya.

“Microfinance helps unlock the productive capacities of millions around the world by giving them the means to turn a good idea into a job. It’s especially effective for women, who make up the majority of the world’s poor,” the Queen said, as she toured the microbusinesses.

Queen Rania, a long-time supporter of microfinance and member of FINCA International’s board of directors, met a number of FINCA Jordan clients to highlight how access to a small amount of capital is helping people like Nemah Jahran (Um Khaled) and her neighbours provide an improved lifestyle for their families, while helping uplift the entire community.

Um Khaled, who lives in Zeziya’s Al Talbiya refugee camp, has long run a small agricultural business focused on raising and selling goats to help support her family.

The 54-year-old, who learned about FINCA Jordan soon after the programme opened in the camp, joined the Al Nemaa (the Blessing) Village Bank group and took out her first FINCA loan of JD300 in early January, which she used to expand her business by purchasing several young goats.

Expressing her gratitude for the organisation’s support, Um Khaled said she is confident that FINCA loans will help her successfully build the business and boost profits, enabling her to provide a better future for her seven children.

FINCA Jordan’s microfinance programmes put capital directly into the hands of low-income entrepreneurs so they can create jobs, build assets and improve their families’ standard of living.

“With repayment rates of over 98 per cent, microfinance is a win-win proposition. It’s not charity: It’s a sound investment,” the Queen said.

FINCA Jordan is FINCA International’s second programme to open in the Greater Middle East region after FINCA Afghanistan.

Executive Director Rupert Scofield said it has long been the desire of FINCA International to bring microfinance services to the region, focusing service provision on segments of the population not reached by traditional microfinance service providers.

He thanked the Queen for her ongoing dedication in helping FINCA achieve its mission, noting that she has “long been supportive of our efforts to reach out to low-income entrepreneurs in the developing world”.

“As we sought to secure funding for our FINCA Jordan programme, Her Majesty encouraged us in our efforts. We are honoured that she could be with us today as we dedicate ourselves to providing the citizens of Zeziya with the products and services that will enable them to provide a more secure future for their families,” Scofield said.

Her Majesty was also joined by FINCA Jordan Programme Director Edward Greenwood, FINCA Jordan Abdali Branch Manager Samer Abu Dalu, and FINCA Jordan Zeziya Credit Officer Mira Al Khader, as well as Betsy Ross, FINCA International advisory board member and supporter of FINCA Jordan.

FINCA Jordan has grown rapidly during its first three months of operation, disbursing more than 2,000 microloans, nearly all of them group loans.

Women account for 98 per cent of all loan recipients, a strong indication that they are major contributors to their families’ well-being in the Kingdom.

The programme will open its fifth branch in Deir Alla region, where it will make financial services available to the more than 60,000 inhabitants of 10 villages that make up the region.

FINCA Jordan currently offers four core loan products: A woman’s group solidarity loan and three individual loans; microloans, youth business start-up loans, and an SME collateralised loan.

All individual loans are offered as either commercial or murahaba loans, so that clients can decide which lending methodology they prefer. The latter are based on Islamic principles of cost plus financing.

FINCA Jordan plans to join many of the network’s other programmes in offering credit/life, and permanent disability insurance products.

Her Majesty co-chairs FINCA International’s multiyear Village Banking Call to Action Campaign, designed to serve one million clients by 2010 through 100,000 village banks in the Greater Middle East, Africa, Eurasia, Central Asia and Latin America.

Providing financial services to the world’s lowest-income entrepreneurs, FINCA International helps them create jobs, build assets and improve their standard of living.

For more than 20 years, the organisation has been committed to breaking the cycle of poverty by providing community-based credit and savings opportunities.

Based in Washington, DC with local operations across 21 countries serving more than 680,000 clients, FINCA’s outreach is among the broadest and most comprehensive of today’s microfinance networks.

For more information visit www.villagebanking.org.


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