In a collaborative effort to advance climate finance and sustainable development in Jordan, the European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) have given the green light to a USD 4 million investment in Tamweelcom, the country’s second-largest microfinance institution.
The financing includes a senior unsecured loan of up to USD 4 million, with EBRD contributing up to USD 3 million and GCF providing up to USD 1 million. This joint initiative falls under the GCF-Green Economy Financing Facility (GEFF) Regional Framework.
Tamweelcom, established in 1999, plays a crucial role in supporting micro, small, and medium enterprises (MSMEs) in Jordan, serving approximately 100,000 clients through its extensive network of 39 branches. The microfinance company disbursed around JOD 725 million since its inception, offering financial and non-financial services to clients, especially those excluded from the traditional banking system.
The investment aims to allocate the loan proceeds towards climate change mitigation and adaptation technologies, focusing on local MSMEs, including women-led enterprises. This strategic move aligns with the standards and reporting requirements for GEFF in Jordan, emphasizing the importance of environmentally sustainable practices.
The project is expected to contribute significantly to the Green Transition Impact (TI) quality, with an estimated score of 70. It aligns with the objectives of the GCF GEFF Jordan Programme, directing funds towards climate-friendly technologies and services that drive the transition to low-carbon and climate-resilient economies.
To ensure the success of the initiative, Tamweelcom is anticipated to benefit from technical cooperation and grant financing. The support includes a comprehensive technical assistance program at the overall program level, aiming to assist Tamweelcom and its customers in project implementation. Additionally, funds from the European Union, GCF, and EBRD’s SSF will provide investment incentives to end borrowers.
This collaborative effort underscores the commitment of international financial institutions to foster sustainable and climate-resilient economic development in Jordan, contributing to the nation’s broader environmental and social objectives.
 and the Green Climate Fund (GCF) have approved a joint investment of up to USD 4 million in Jordan's microfinance institution, Tamweelcom. The funds aim to support climate change mitigation and adaptation technologies for local micro, small, and medium enterprises, with a focus on women-led initiatives. This partnership contributes to the transition to environmentally sustainable, low-carbon, and climate-resilient economies in Jordan.){kind=link}