World Bank approves $1.1b in financing to support Jordan's economic modernisation vision

AMMAN — The World Bank Group on Tuesday has announced a new financing package worth $1.1 billion to support Jordan in achieving key objectives under the Economic Modernisation Vision (EMV).

The funding aims to enhance social and economic resilience amid ongoing challenges and crises.

The financing includes four specific projects designed to improve living conditions for Jordanians, the Jordan News Agency, Petra reported.

The projects focus on implementing reforms for inclusive growth and job creation, supporting startups and small to medium-sized enterprises, extending social assistance and fostering a sustainable energy future to stimulate the country's economic activity.

"Jordan continues to demonstrate commitment to advancing critical reforms to build a more competitive, inclusive and resilient economy," said World Bank Division Director, Middle East Department, Jean-Christophe Carret,  

These new programmes represent a comprehensive approach vital for achieving sustainable growth, including support for private sector investment, entrepreneurship, social protection and the energy transition."

Since the launch of the EMV, Jordan has made "significant" strides in modernising its economy, fostering innovation, enhancing fiscal sustainability and broadening social protection.

With a renewed emphasis on inclusion and digital transformation, the government is working to harness the potential of the private sector, aiming for tangible improvements in the lives of Jordanians.

The four approved projects constitute an important milestone in the implementation of the World Bank Group's Country Partnership Framework for Jordan for 2024-2029, signifying a results-driven partnership that merges reforms with strategic investments.

Minister of Planning and International Cooperation Zeina Toukan said "This new financing reflects our continued partnership with the World Bank to promote economic opportunities, enhance social protection and strengthen Jordan's innovation and clean energy agenda as per the development priorities under the Economic Modernisation Vision." 

Among the notable programmes are the $400 million Jordan Growth and Competitiveness Development Policy Financing Programme, which supports the government's efforts to unlock investment, boost exports and create economic opportunities for youth and women.

The programme encompasses reforms to better the business environment, promote fair competition, broaden access to finance and streamline customs procedures.

The second phase of the Innovative Startups and SMEs Fund (ISSF) 2.0 project, funded at $50 million, aims to enhance early-stage direct investment financing and stimulate private investment in high-growth startups across sectors like information and communications technology (ICT), financial technology (FinTech), health solutions technology and green technology.

Building on the success of the initial phase which attracted over $240 million in private capital and created more than 2,290 jobs the second phase will leverage International Finance Corporation's (IFC) expertise in due diligence and co-investment in startups and regional venture capital funds.

The forthcoming phase of the Jordan Innovative Startups Fund (JISF) is projected to attract an estimated $150 million in private capital over five years, supporting 100 startups and creating 1,500 new jobs in growth sectors for women- and youth-led businesses.

The $400 million Resilient and Sustainable Social Protection Programme is designed to bolster Jordan's ability to respond to shocks while providing better support for the country’s most vulnerable populations.

The programme aims to expand cash assistance, improve digital service delivery and connect beneficiaries with education, healthcare and employment opportunities. 

It seeks to deliver cash transfers to 1.2 million vulnerable people, health insurance to around 150,000 people and services to one million people through early warning and response systems.

The Electricity Sector Efficiency and Supply Reliability Programme, with $250 million in financing, will aid Jordan's clean energy transition and enhance the stability and financial sustainability of the public grid.

The initiative will implement cost-saving and revenue-enhancing measures in the sector, improve energy efficiency in public institutions and strengthen cyber security in electricity transmission operations.

It further supports Jordan's objective of increasing the share of renewable energy in the electricity mix to 31 per cent by 2030 while bolstering the resilience of the public grid.