Innovative approaches for the financial inclusion of micro-, small and medium enterprises (MSMEs) in Jordan (I-FIN)

Project description

Title: Innovative approaches for the financial inclusion of micro-, small and medium enterprises (MSMEs) in Jordan (I-FIN)
Commissioned by: Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Jordan
Lead executing agency: Central Bank of Jordan​​​​​​​
Overall term: 2021 to 2025

Three women wearing hijabs sit at a round table in a meeting. Copyright: GIZ


Micro, small and medium sized enterprises (MSMEs) can act as a key driver for economic growth, given the potential they have for creating decent jobs as well as reducing poverty and inequality.

The Central Bank of Jordan defines MSMEs as enterprises with less than 100 employees. They account for more than 99 per cent of all businesses and cover around 70 per cent of private-sector employment.

However, their lack of access to finance is a major challenge.

Only 10 per cent of all bank and microfinance institution (MFI) loans go to MSMEs. As a result, MSMEs often finance themselves through their own resources, which limits their productivity and their ability to hire more workers. Enterprises owned and led by women are often particularly disadvantaged in loan applications, typically obtaining only small and relatively costly loan amounts through MFIs.

Alternative financial products and new technologies including FinTech solutions could enhance MSMEs’ financial inclusion and efficiency. However, exploiting these requires improvements to Jordan’s regulatory and supervisory framework. Financial literacy about digital financial services must also be improved among small business owners.

A woman with a hijab and a man are discussing in a café. In front of them is a laptop and stacks of notebooks. Copyright: GIZ


Access to innovative financial services for growth-oriented micro, small and medium-sized enterprises (MSMEs) in Jordan is improved.


To reach better access to finance for MSMEs, the I-FIN project promotes innovations on the regulatory, supply and demand sides of the finance market for MSMEs.

On the regulatory side, the project supports the Central Bank of Jordan in creating an enabling environment for innovative MSME financing.

On the supply side, the project assists a wide range of financial service providers to establish innovative financial services for MSMEs.

On the demand side, the project works with training providers to improve the ability of MSMEs to access and effectively use innovative financial services.

The project also focuses on the challenges and needs of women-led MSMEs and promotes products and services that serve their specific needs.

Last update: August 2022

Someone pays contactlessly with a smartphone in a café. Copyright: GIZ

Additional information