Grameen-Jameel brokers $44m

Grameen-Jameel, a joint venture for-profit company with a social purpose, has brokered more than $44 million (Dh161.61m) through its Guarantee Fund in financing for microfinance institutions, including several transactions that are opening new opportunities for microfinance institutions in Egypt, Jordan, Syria and Tunisia, a statement said yesterday.

It was the first company to obtain financial leverage on a guarantee in Egypt for its partner, Dakahlya Businessmen's Association for Community Development, and the first to facilitate a commercial debt facility in Syria for First Microfinance Institution.

Fadi Jameel, Grameen-Jameel board member and president of Abdul Latif Jameel Community Services International, said: "The potential microfinance industry in the Arab World is estimated at $5.5 billion and we are already over one third of the way toward our 2011 target of actively helping one million poor people throughout the Arab world exit poverty."

In 2008 alone, Grameen-Jameel's partners added more than 110,000 new clients, an increase of 46 per cent over new clients Grameen-Jameel had impacted through its partner relationships as of 2007.

"In most cases, microfinance loans are used by individuals to build a business for themselves. Whether a Jordanian woman uses her skills to produce embroidered gifts, or a group in Morocco sells farm produce, they are making every effort to ensure their micro-business is a success. Escaping from the chains of poverty is an extremely powerful motivation to make these investments succeed," he said.

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