Jordan, a country long reliant on imported fuel, is set to transform its energy portfolio over the next few years, thanks to investment from IFC. The country has always had plentiful wind and solar resources but has struggled to harness these over
IFC’s strategy in Jordan focuses on creating a knowledge-based economy in this labor abundant, but resource poor country. IFC focuses on encouraging private sector involvement through investments, developing a more active financial sector through regulatory reform, engaging the private sector in infrastructure projects, and creating more financing tools, like leasing, for small and medium enterprises.
IFC’s investments have historically contributed to promoting the tourism, manufacturing, and pharmaceutical sectors. In fiscal year 2012, IFC committed $166 million in the country and mobilized another $55 million. Our investment portfolio currently stands at $656 million.
In 2012, IFC committed $137.5 million to Jordan’s leading pharmaceutical company, Hikma Pharmaceuticals, to help provide better healthcare services and high-quality medicine across the region.
We made a $10.5 million investment in Jordan’s biggest electricity company, CEGCO. The support will help the firm retool seven thermal power plants, which are fired almost entirely by oil and natural gas imports. That will make the plants, which churn out 60% of Jordan’s electricity, more efficient and friendlier to the environment
In fiscal year 2011, IFC committed $141 million to Jordanian companies and mobilized another $90 million. This included a $215 million (including mobilization) loan to the Jordan-India Fertilizer Company (JIFCO) to support construction of a state-of-the-art phosporic acid plant for the production of fertilizer in Jordan
In fiscal year 2010, we gave a $30 million loan to CMTC (Al-Mutakamelah Bus Transportation) to support the acquisition of TWG, a Kuwaiti bus company. This was the first urban bus investment for IFC globally and in the region. We also provided a $30 million loan to Nuqul Group to support its expansion in Egypt and North Africa. We also had a $13 million equity participation in Ed Fund, a UAE-based fund, to support the firm’s acquisition of Al-Alamiyah Schools in Amman.
In Jordan, IFC is engaged in several advisory services activities to improve the business environment, increase access to finance, support the development of small and medium enterprises, and promote public-private partnerships. Some of our ongoing activities in Jordan include:
Partnering with Ahli Bank to help small and medium enterprises acquire the skills they need to expand and grow their businesses, and create jobs;
Working with the government of Jordan to streamline the licensing and inspection process, fostering a more dynamic private sector;
Partnering with the Central Bank of Jordan to create the first corporate governance code for banks and training banks in Jordan on good corporate governance practices; Helping establish a private credit bureau industry through creating a legislative framework by reviewing existing law and writing a new credit reporting law;
Supporting the government’s creation of leasing legislation and promoting leasing awareness among relevant stakeholders; and
Raising awareness in the country’s banking sector regarding sustainable energy financing opportunities targeting women, low-income households, and climate-friendly initiatives.