BAKU, Azerbaijan, April 7. The European Bank for Reconstruction and Development (EBRD) and Jordan’s Microfund for Women (MFW) have signed a $4 million Green Economy Financing Facility (GEFF), which includes $1 million in co-financing from the Green Climate Fund (GCF), Trend reports.
This facility will support the expansion of green lending to micro, small, and medium-sized enterprises (MSMEs) in Jordan, particularly startups.
Jordan’s financial sector has limited green financing options, and this new funding aims to build capacity for green lending, promoting climate-change mitigation and adaptation investments. The facility is expected to help create a demand-driven market for technologies and services that support Jordan’s green economy.
This is the second collaboration between the EBRD, the EU, and the GCF with MFW, following a $2 million loan in 2022 aimed at supporting underserved MSMEs, especially those led by women. The new agreement also includes technical cooperation to enhance MFW’s capacity in climate change mitigation, adaptation technologies, and gender-responsive lending.
The EBRD will provide further support through its Advice for Small Businesses programme, which will assist MFW beneficiaries with marketing, financial management, and compliance with regulations.
MFW, Jordan’s largest microfinance institution, operates 63 branches, including 45 outside the capital Amman, and serves over 120,000 clients. Since 2012, the EBRD has invested over 2.3 billion euros in Jordan through 75 projects, including significant funding for the energy sector.