Jordan ranks 4th in Arab microfinance sector

Microfinance Focus — Mon, 01 Feb 2010 10:12:06 +0000

Microfinance Focus, Feb. 1, 2010: The number of microfinance borrowers in Jordan increased by 39% annually from 51,000 to 144,000 between 2005 and 2008, ranking the country fourth in the Arab microfinance sector, according to a country report published by Sanabel, the Microfinance Network of Arab Countries.

The report calculates that Jordan’s active client base of 144,000 microfinance borrowers represents a current penetration rate of only 18% within the total population of potential clients.

Total micro-lending jumped from $18m to $127m during the same period as well, resulting in a robust compound annual growth rate (CAGR) of 63%. These metrics place Jordan as the 4th largest microfinance market in the Arab world.

Nine commercial banks, including branches of 4 multi-national banks, are active wholesale lenders to Microfinance Institutions (MFIs). Although the Arab microfinance industry is quite young, it is one of the fastest growing sectors in comparison to its global peers.

Ziyad Akrouk, Citi Managing Director in Jordan, said: “Establishing a more supportive framework for the microfinance industry will allow this vital economic sector to reach many more people in need across the Kingdom. By strengthening our partnerships with microfinance networks such as Sanabel and SEEP, Citi helps reposition microfinance closer to mainstream financial services and empower a large sector of the society that is currently unbankable.”

This report and other country reports fall within the broad activities of the Citi Network Strengthening Program (Citi NSP).Related Posts:

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Jordan ranks 4th in Arab microfinance sector