24947 - Microfund for Women (MFW)

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

24947

Company Name

MICROFUND FOR WOMEN

Date SPI Disclosed

May 22, 2006

Country

Jordan

Industry

Financial Markets

Projected Board Date

Jun 26, 2006

Status

Completed

Sector

Microfinance and Small Business - Non Commercial Banking

Department

Regional Industry - FIG ME & Africa

Environmental Category

FI-1 - Significant

Previous Events

Approved : Aug 18, 2006
Signed : Mar 19, 2007

Project Description

The project involves an up to $3.0 million loan or JOD 3.0 million with an IFC 50% partial credit guarantee (PCG) and a comprehensive technical assistance (TA) package to Microfund for Women (MFW or the company), the leading microfinance institution in Jordan. The purpose of the loan is to support MFW’s microfinance lending operations through its nine branches covering central and northern Jordan: in the following areas; Raghadan, Nazzal, Wehdat, Baqa’a, Russaifeh, Zarqa, Jerash, Madaba and Irbid. The proposed loan will also allow MFW to introduce new products such as micro-leasing, home improvement loans, education loans and provide comprehensive financial services on a commercially sustainable basis for low income women and reach greater scale.

PEP-MENA is expected to design a TA package for MFW, which may include introducing micro-leasing and Board of Directors (governance) training. In addition, IFC’s Gender Entrepreneurship Markets (GEM) program is expected to assess the financial needs of women clients and based on their findings, develop new financial products for women clients.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	2.12
Loan
Equity	1.0

Development Impact

The developmental impact of MFW is expected to be high and far reaching in terms of its economic support for productive micro and small businesses, stimulus for employment generation in Jordan. Specifically, IFC’s investment is expected to have a high development impact in the following key areas:

- Significant contribution to economic development through IFC’s support of the strengthening of a microfinance company and the more ample range of financial products that were previously not available to microentrepreneurs; and
- Significant direct contribution to poverty reduction: this project is expected to reach an estimated 24,000 new micro and small entrepreneurs and increase employment and income generation for over 40,000 citizens, primarily in rural areas, during the tenor of the loan.

The most recent World Bank Group Country Assistance Strategy (January 15, 2003), outlines the WBG’s strategy which focuses on advisory activities designed to further support Jordan’s macroeconomic stabilization, and pro-market structural reforms to foster growth and reduce poverty. The CAS contemplates support from both the IBRD and the IFC. The CAS has three main pillars, but the most relevant to IFC’s activities is the third, which focuses on understanding the causes of poverty and developing ways to reduce unemployment and alleviate poverty.

IFC’s support will allow MFW to access long-term funding in dollars or local currency to further grow its loan portfolio and establish a sustainable microfinance entity. In addition, IFC’s Private Enterprise Partnership for the Middle East has proposed to support MFW through a comprehensive technical assistance package focused on developing new products, improving corporate governance and strengthening brand positioning. These programs are critical to MFW''s sustainability and growth.

This is a Category FI Type 1 project according to IFC''s environmental and social review procedure. The project must establish and maintain an Environment and Social Management System (ESMS) to the satisfaction of IFC, to ensure that it does not make investments in items listed on IFC’s Microfinance exclusion list. The project must designate appropriate individuals who will have responsibility for the implementation of the ESMS. The project must submit annual environmental performance reports to IFC, as per an IFC format.

Contacts

For Inquiries About the Project, Contact

Ms. Arije Al-Ahmad, General Manager
Queen Rania Al-Abdullah Street
P.O. Box 962854, Amman 11196, Jordan
Telephone: (+962) 6 5169191
Fax: (+962) 6 5167128
www.microfund.org.jo

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennslyvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Webform: http://www.ifc.org/ifcext/home.nsf/Content/WebFeedbackForm
E Mail: Webmaster

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Expected Development Contribution

Environmental and Social Issues - Category

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer