The World Bank is reviewing $900 million in financing for five initiatives in Jordan, focused on economic reform, social protection, and entrepreneurship. Key investments include $400 million for enhancing social protection, additional funding for vocational training, and $50 million to stimulate entrepreneurship. Despite regional instability, Jordan’s economy shows growth potential, supported by this forthcoming funding.
The World Bank is evaluating funding options for five significant projects in Jordan, potentially amounting to $900 million. This financial assistance aims to bolster economic reforms, social protection, key sectors, and entrepreneurship. These initiatives align with the Country Partnership Framework (2024-2029), established by the Ministry of Planning and International Cooperation in partnership with the World Bank.
In the previous fiscal year, the World Bank secured four financing agreements worth $1.235 billion for Jordanian government projects, coupled with $41 million from additional donors. This funding represents the highest level of financing for Jordan in the last five years. To date, the Bank has disbursed $554 million, which is 44.8 percent of the total allotted funds, leaving $681 million undisbursed.
The proposed $400 million financing aims to enhance Jordan’s social protection system, reflecting the National Social Protection Strategy and the Economic Modernisation Vision (2022). This initiative seeks to double growth rates over the next decade while creating job opportunities and enhancing productivity.
Jordan’s social safety net is the most extensive in the Middle East and North Africa, offering support to the poorest populations. By 2022, these programs had expanded significantly, reaching 34 percent of the population, with 45.2 percent of Jordanians receiving assistance.
The World Bank also aims to promote economic growth through a $400 million project designed to create sustainable jobs led by the private sector. In addition, a further $5.6 million is being evaluated for the “Masar” program, initiated with an initial investment of $400 million to improve education and training in alignment with labor market needs.
The package also includes a $4 million grant to enhance the school feeding program and a $1 million grant for teacher training initiatives. To stimulate private investment, an additional $50 million is being reviewed to support startups and SMEs, building on the previous success of the Innovative Startups and SMEs Fund.
Moreover, the Bank is proposing an additional $7.5 million for the “Strengthening Reform Management” program, increasing total funding to $23.3 million and extending the program’s implementation period until 2028. The Jordanian government remains committed to economic reform, having presented a five-year reform plan during the London Conference in 2019, later extended to 2024.
Despite facing regional instability, Jordan’s economy showed resilience with a growth rate of 2.6 percent reported in the third quarter of 2024. The World Bank’s projections indicate a consistent growth of 2.6 percent for 2024 and 2025, despite challenges in key sectors due to ongoing conflicts in neighboring regions.
The World Bank’s proposed financing of $900 million will significantly support Jordan’s economic reforms, social protection mechanisms, and entrepreneurship initiatives. The alignment with strategic frameworks aims to modernize the economy and enhance job growth. Despite geopolitical challenges, Jordan continues to demonstrate economic resilience, and the ongoing support from the World Bank is crucial for its sustained development and reform initiatives.
Original Source: www.jordantimes.com
