MEII takes a specialized approach to each of our countries of operation.
SME Technical Assistance
First, MEII has developed Tamweeli Assist and Tamweeli Academy which is aimed at improving the accounting and financial literacy of SMEs. MEII believes that improved financial literacy leads to enhancing financial transparency and governance, which can facilitate better access to finance for SMEs and allow them to grow and hire more people. By developing the financial literacy and financial disclosure, SMEs can transparently present their bankability and cash flows to financial intermediaries, which in turn can better assess risk and underwrite loans.
Second, the Tamweeli Platform harnesses the security, speed, and simplicity of the Internet to streamline the financing process for both financial intermediaries and SMEs - connecting businesses with funding for growth and allowing financial intermediaries to better assess opportunities. The platform enables entrepreneurs to present financing requests anonymously and competently to multiple financial intermediaries in a standardized format, thereby saving time, expenses, and travel inconveniences.
Financial intermediaries are able view high level pitches from entrepreneurs and express their interest to entrepreneurs via the platform. An entrepreneur can then decide if he/she wishes to proceed by inviting the interested financial intermediary to sign a confidentiality agreement via the platform, which will grant the financial intermediary access to the details of the financing requirements, including the identity, credit application, business plan, and financial statements of the entrepreneur. Improving the level of information that financial intermediaries receive will significantly
reduce the time they take to analyze loans and lead to better lending decisions as both parties start communicating in the language of finance. Thus, Tamweeli provides the entrepreneur with a convenient, user-friendly platform that facilitates ready access to competing financing offers without the inconvenience, embarrassment and intimidation often associated with applying for a loan, which is often the case, especially for female entrepreneurs and those in rural areas.
Shortly after the COVID-19 outbreak, the Jordanian Government announced their first set of measures to address immediate liquidity and financing concerns for various sectors/ businesses. Nevertheless, lockdowns, the global economic slowdown, trade disruptions, and the suspension of international travel are likely to have a sizable impact on the Jordanian economy. (World Bank)
With second and third waves of the virus sweeping the country, Jordan's major economic indicators are steadily deteriorating. However, despite increasing debt levels and unemployment, Jordan's economic fallout has remained modest compared to other countries in the MENA region.
Small and Medium Enterprises in Jordan
Jordan has over 100,000 SMEs (97% of all companies), making up more than 50% of the country’s GDP, employing 60% of the Jordanian workforce, and accounting for 45% of exports. Helping Jordanian SMEs (including refugee businesses) grow and expand will have a broad effect on the Jordanian economy and improve regional stability.
This year, the European Investment Bank (EIB) is partnering with Housing Bank to support the Jordanian economy with a €100 million line of credit to local private sector businesses that have been severely impacted by the coronavirus outbreak. COVID-19 has caused many companies to experience a decrease in turnover and profitability. As a result, it is crucial that extra steps be taken to support vulnerable private sector businesses and protect jobs.
Prior to the pandemic, Jordan was being recognized by the World Bank's Doing Business Report as one of the economies with the most notable improvements. This is largely due to strengthened access to credit and secured transaction laws. Additionally, they are now ranked 75 out of 185 countries compared to 167 in 2013.