Grameen-Jameel Fights Poverty Across the Arab World
Two years after being launched as the first poverty-focused social business in the Arab world, Grameen-Jameel Pan-Arab Microfinance Limited (Grameen-Jameel) is celebrating significant milestones that are helping to transform microfinance’s impact across the Arab World.
Through its Guarantee Fund, Grameen-Jameel has brokered more than US$ 44 million in financing for microfinance institutions, including several landmark transactions that are opening new opportunities for microfinance institutions in Egypt, Jordan, Syria and Tunisia. 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. It has also awarded 312 scholarships for microfinance practitioners to participate in major regional and international training events, which has enabled them to build a peer network to share their expertise and learn from leading institutions in the field.
Fadi Jameel, Grameen-Jameel board member and president of Abdul Latif Jameel Community Services International, says: “The potential microfinance industry in the Arab world is estimated at US$ 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.
Jameel explained: “This program is about empowering the poor. 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.”
Founded in 2007, Grameen-Jameel established its head office in Dubai’s International Humanitarian City in February 2008. Inspired by the work of Nobel Peace Prize winner Dr Muhammad Yunus, in Bangladesh, Grameen-Jameel was created as a social business by US-based Grameen Foundation and Saudi Arabia's Bab Rizq Jameel Limited, a subsidiary of Abdul Latif Jameel Group. The organisation has established strong relationships with twelve microfinance institutions in Morocco, Tunisia, Egypt, Lebanon, Jordan, Yemen, and most recently in Palestine. The organisation’s partners have benefited from its commitment to improving industry standards throughout the region.
Grameen-Jameel’s chairman, Zaher Al Munajjed, says: “It is crucial to ensure the hard work of the past two years continues. Grameen-Jameel will continue to support microfinance developments in areas of the Arab world not yet benefiting from these opportunities. Abdul Latif Jameel’s collaboration with Grameen Foundation has been a clear success.”
Al Munajjed added: “We would like to see more Arab investors tap into the potential of microfinance. “Long-term this will lead to economic development and growth in the poorer communities throughout the Arab region. We are convinced the time is ripe to see the microfinance sector in the Arab world accelerate its rapid evolution from a mainly donor-driven activity to a one that develops on a sound commercial basis with social performance management as a clear driver.”
Alex Counts, president of Grameen Foundation, said: “Grameen-Jameel founder, Mohammed Jameel’s vision for expanding microfinance throughout the Arab world is quickly being realised. We believe 2009 will continue to show impressive results for this dynamic and driven organisation that has already helped thousands and will continue to help many thousands more.”
An estimated sixty million people in Arab countries live on less than US$ 2 per day, with less than 10 per cent of demand for microfinance currently being met.
