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Supporting liwwa's financing activity for Jordanian SMEs

Project

Signature date
Location
Jordan
Financing tool
Grant, Loan, Technical assistance
Financing amount (Euro)
1060000
Financing details
EUR 1m loan and EUR 60,000 grant from the 209 Facility for fragile countries
Customer
United liwwa for SME financing LLC ("liwwa")
Type of customer
Company
Country of headquarters
Jordan
Project number
PJO1031 / PJO1032
Environmental and social ranking
IF-C
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco has allocated a loan and a technical assistance grant to the Jordanian fintech liwwa.

Client presentation

liwwa is a Jordanian fintech set up in 2012 with the objective of targeting the SME segment. This segment is especially neglected, as SMEs in Jordan are not covered by microfinance and are not served by traditional players in the banking sector. liwwa’s objective is therefore to support job creation and income growth by eliminating the financing gap for SMEs. 

Project description

Proparco is supporting liwwa via a EUR 1m loan and a technical assistance grant. 

The loan allocated to liwwa will help strengthen the country’s SME fabric and thereby promote economic and social cohesion in Jordan in a regional context of chronic crises. It also contributes to the Sustainable Development Goals (poverty eradication, economic growth, innovation, reduction of inequalities). 

The technical assistance (TA) project aims to help liwwa move towards the full compliance of its AML/CFT (Anti-Money Laundering/Financing of Terrorism) system and improve it. The aim is to bring it in line with the FATF (Financial Action Task Force) Recommendations and ensure that it is satisfactory for Proparco. In practical terms, the TA will allow liwwa to establish a diagnostic of its situation in terms of AML/CFT procedures, update it and improve the system. The teams will also be sensitized through relevant training.   

 

Project impact

The main expected impacts of the project are as follows:

  • Support for the fabric of Jordanian MSMEs
  • 175 jobs supported at liwwa and in the MSMEs financed.  

Through these various expected developmental impacts, the project will contribute to SDGs 1 (“No poverty”), 8 (“Decent work and economic growth”) and 10 (“Reduced inequalities”).