World Bank to fund $1.1 billion for Jordan's economic growth

The World Bank has announced a new USD 1.1 billion funding package to support Jordan in achieving its economic modernization goals.

The funding will support four key projects aimed at improving living conditions for citizens through reforms designed to promote inclusive growth, create job opportunities, support startups and small- and medium-sized businesses, expand social safety nets, and enhance a more sustainable energy future to stimulate economic activity in the country.

Jean-Christophe Carre, the World Bank Country Director for the Middle East Department, emphasized Jordan's continued commitment to vital reforms that foster a competitive and resilient economy, saying the new programs reflect an approach to achieve sustainable growth, with support for private sector-led investment, entrepreneurship, social protection, and energy transition.

Since launching its Economic Modernization Vision, Jordan has made significant strides in updating its economy, promoting innovation, enhancing fiscal sustainability, and expanding social protection.

The recently approved projects represent a significant milestone in the implementation of the World Bank-Jordan Strategic Partnership Framework for 2024-2029, marking a results-oriented partnership focused on reforms and strategic investments.

Minister of Planning and International Cooperation, Zeina Toukan, stated, "This new financing reflects ongoing cooperation and partnership with the World Bank to enhance economic opportunities, social protection, innovation, and clean energy agendas in Jordan as part of the Economic Modernization Vision."

The development policy financing program (worth USD 400 million) will assist the government in launching investments, boosting exports, and creating economic opportunities, particularly for youth and women. The program will support reforms to improve the business environment, enhance competition, expand access to financial resources, and streamline customs procedures.

The second phase of the Jordanian Innovation Fund (ISSF 2.0) (USD 50 million) aims to expand direct investment funding in early-stage companies and stimulate private investment in high-growth startups in key sectors such as ICT, fintech, healthtech, and green tech. Building on the first phase, which attracted over USD 240 million in private capital and created over 2,290 jobs, the second phase is expected to raise approximately USD 150 million in private capital over five years, supporting 100 startups and generating 1,500 new jobs, particularly in women- and youth-led businesses.

The Resilient and Sustainable Social Protection Program (USD 400 million) aims to enhance Jordan's ability to respond to shocks and improve support for the most vulnerable populations. The program will expand cash transfers, improve digital service delivery, and connect social protection beneficiaries to education, healthcare, and employment opportunities.

Additionally, the USD 250 million supplementary funding for the Electricity Sector Efficiency and Reliability Program will support Jordan's transition to clean energy, improve the stability of the national grid, and enhance financial sustainability. The program will introduce measures to reduce costs, increase revenue in the sector, improve energy efficiency in public institutions, and bolster cybersecurity in electricity transmission operations.

These efforts align with Jordan’s goal of increasing renewable energy's share in its electricity mix to 31 percent by 2030, while strengthening the resilience of its grid.