The World Bank is considering a $900 million financial package for Jordan to support economic reforms, enhance social protection systems, and promote entrepreneurship. The investment aligns with Jordan’s strategic goals for economic growth and welfare improvements, despite regional challenges.
The World Bank is evaluating financing for five initiatives in Jordan, potentially amounting to $900 million. These efforts aim to bolster economic reforms, social protections, key sectors, and entrepreneurship, in alignment with the Country Partnership Framework (2024–2029), created by the Ministry of Planning and International Cooperation.
Included in this proposed financial package is an investment of $400 million dedicated to enhancing social protection systems. This aligns with Jordan’s National Social Protection Strategy, aiding vulnerable populations and supporting job creation and productivity in priority sectors.
The World Bank observes that Jordan maintains the most extensive social protection system in the Middle East and North Africa region, covering substantial portions of the population and supporting those in dire financial need. By 2022, 34 percent of Jordanians benefited from these programs, with significant support for the poorest groups.
Additionally, the Bank is considering $5.6 million for the “Masar” program, aimed at improving education quality and vocational training while ensuring alignment with labor market demands. This initiative emphasizes enhancing opportunities for vulnerable demographics, including refugees.
To stimulate private sector engagement, the World Bank is reviewing a proposed $50 million to strengthen startups and SMEs, expanding on the successful Innovative Startups and SMEs Fund (ISSF). From 2018 to 2022, Jordan ranked highly in the region for venture capital funding, attracting significant investment in local innovation.
The Bank is also allocating $7.5 million to the “Strengthening Reform Management” program in Jordan, extending its funding to $23.3 million to help sustain economic reform initiatives through 2028. Jordan’s government has underscored its commitment to economic reform and sustainable growth throughout its five-year reform strategy, which aims to improve the investment climate despite regional challenges.
Despite external pressures, Jordan’s economy saw a 2.6 percent growth in the third quarter of 2024. The World Bank projects similar growth rates for 2024 and 2025, showcasing resilience amidst geopolitical upheaval.
In summary, the World Bank’s proposed financing of up to $900 million for Jordan encompasses various projects targeting economic reform, social protection, and entrepreneurship development. Significant allocations focus on enhancing social welfare systems and enhancing education. With Jordan’s commitment to sustained reforms and positive economic forecasts, these investments could further bolster the country’s growth and resilience.
Original Source: www.jordantimes.com
