The World Bank is considering a financing package up to $900 million for five projects in Jordan to bolster economic reforms, social protection, and entrepreneurship. This includes $400 million for social welfare enhancement, funding of the “Masar” program, and support for startups and SMEs. The initiatives align with Jordan’s national strategies for economic growth and job creation. Previous funding agreements reflect a significant financing level over recent years, underscoring ongoing developmental efforts despite regional challenges.
The World Bank is currently considering financing for five projects in Jordan, potentially amounting to $900 million, aimed at reinforcing economic reforms, social protection frameworks, essential sectors, and entrepreneurship. This initiative coincides with the Country Partnership Framework (2024–2029), collaboratively established by the Ministry of Planning and International Cooperation and the World Bank.
In the last fiscal year, the World Bank signed agreements totaling $1.235 billion for various government projects in Jordan, alongside an additional $41 million from other donors. Thus far, the Bank has disbursed $554 million, which is 44.8 percent of the allocated funds, leaving $681 million yet to be disbursed.
Among the significant funding proposed is $400 million aimed at enhancing Jordan’s social protection system in alignment with the National Social Protection Strategy and the Economic Modernisation Vision (2022). The endeavor focuses on increasing growth rates in the next decade, generating employment opportunities, and enhancing productivity.
Jordan boasts the largest social protection system in the Middle East and North Africa, aiding vulnerable populations significantly. As of 2022, 34 percent of the population benefits from social protection programs, including 45.2 percent of all Jordanians and 42 percent of those within the lowest-income bracket.
The World Bank is also reviewing an initiative intended to stimulate private-sector growth and sustainable job creation, with a proposed $400 million investment. Furthermore, the Bank is considering $5.6 million in financing for the “Masar” program, designed to improve both educational quality and workforce readiness among vulnerable groups, including refugees.
Included in the funding package are grants to enhance educational initiatives, amounting to $4 million from the Forced Displacement Trust Fund and $1 million from the Early Learning Partnership Programme. Additionally, the Bank is assessing a further $50 million for supporting startups and small to medium-sized enterprises (SMEs) in Jordan, following successful initiatives from the Innovative Startups and SMEs Fund.
The World Bank plans to allocate an additional $7.5 million towards the “Strengthening Reform Management” program, augmenting its total funding to $23.3 million while extending the implementation period until 2028 to bolster Jordan’s economic reforms.
The Jordanian government has reiterated its commitment to fostering economic reform and sustainable growth, introduced through a five-year reform matrix aimed at addressing vital economic challenges and promoting a favorable investment climate. Despite regional instability affecting key sectors like tourism and transport, Jordan’s economy is projected to have grown by 2.6 percent in 2024, with similar growth anticipated for 2025, as per the World Bank’s Global Economic Prospects report.
In conclusion, the World Bank’s proposal for a $900 million financing package for various projects in Jordan emphasizes the importance of economic reforms, social protection, and entrepreneurship. The initiatives are slated to significantly enhance social welfare, job creation, and educational outcomes, underpinning Jordan’s commitment to sustainable development despite external challenges. With robust support targeting both vulnerable populations and private sector growth, these efforts aim to stimulate comprehensive economic advancement in the Kingdom.
Original Source: www.jordantimes.com
