- Community Empowerment
Thursday, October 4, 2012
Her Majesty Queen Rania Al Abdullah meets with representatives of the microfinance sector in Jordan
(Office of Her Majesty, Press Department- Amman) – Her Majesty Queen Rania Al Abdullah met with representatives of different microfinance organizations and beneficiaries of the sector in Amman today, in a meeting that highlighted the successes and challenges of the growing sector.
Her Majesty stressed the importance of increased coordination and cooperation amongst the different microfinance institutions, to align their work and combine efforts adding that there needs to be “special emphasis on empowerment of entrepreneurial youth.”
The meeting, which was attended by Minister of Planning and International Cooperation, H. E. Dr. Jafar Hassan, included a brief introduction on the microfinance sector and a presentation by the Jordan Microfinance Network (Tanmeyah), a non-profit organization that represents microfinance institutions (MFIs) in Jordan.
H.E. Dr. Jafar Hassan explained that MoPIC is currently in the implementation phase of a new strategy for the microfinance sector that aims to increase access to comprehensive financial services to low-income families, as well as the development of new lending products.
He added that the new strategy focuses on coordinating efforts under one umbrella that oversees the work of the sector and initiates a self-censorship system through a network to regulate their internal affairs and to improve the sector’s overall contribution to the process of sustainable local development.
Following recommendations of the National Policy Framework for the Microfinance sector in Jordan by MoPIC, which outlined the roles of both private and governmental institutions in the sector, Tanmeyah emerged in 2007 as the national representative of private microfinance institutions, replacing the Microfinance Association of Jordan (MAJ).
Tanmeyah members include the National Microfinance Bank (Al Watani), Jordan Microcredit Company (Tamweelcom), Micro Fund for Women, Middle East Micro Credit Company (MEMCC), Finca-Jordan, Ahli Microfinance Company (Al Ahlya), Cairo Amman Bank and UNRWA microfinance department.
Tanmeyah Chairman, Mustafa Nasereddin, said that based on their latest studies, they have reached more than 224,000 active borrowers in the first half of 2012, adding that these borrowers were predominantly women, and received active loans that reached up to JD248,000.
The meeting also included a brief about the Development and Employment Fund DEF by its Director, Eng.Omar Al Omari. Established by the government in November 1989, DEF is a specialized development entity that is financially and administratively autonomous and is financed by international donors, the Treasury, and local private donations.
DEF aims to enable poor, low-income or unemployed individual, families or groups to participate in work and production in order to contribute to the fight against poverty and unemployment.
The meeting also highlighted the microfinance sector’s major challenges, including the lack of legal supervisory consistency. Participants said there are currently no restrictions under the Jordanian law that limit or regulate the types of institutions that can engage in micro-finance lending..