Tamweelcom Jordan Micro-credit Company

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Jordan overview

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Population: 6,198,677 GDP/Capita (ppp): $ 4,700 % < Poverty line: 14.2% GDP Growth (2007): 6% Inflation: 5.4%Source: CIA World Fact book

No. of MFIs: 6 No. of Borrowers: 74,000 Penetration (No. of Borrowers/No. of poor): 10%Source: CGAP

Palestine

Tamweelcom micro-value chain services

Financial

Social

Economical

Environmental

Target ChangeNeed

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Tamweelcom’s partners•Vocational training •Business skills• Marketing

•Group loans •Individual loans•Loan insurance

•Marketing Gateway•Primary school educational grant •Business-to-Business linkages

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Sustainable Environment products

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• Product specification (solar panel and heating systems) • Product process

Clients Level

• Lack of awareness.

• Relying on electricity and gas, most easier accessible source and lower cost.

• Roof Spaces and internal pipes structure

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Products Level:

•Product efficiency (traditional and evacuated tubes)

•Heated competition with low quality products

•Product term and payback period

• Banking competition (Smaller long terms in comparison with asset financing methodology.

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Staff Level

• Lack of experience to promote and sell tangible products.

• Inadequate training

• Inadequate technical skills

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Thank you for your attention

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Jordan microfinance industry

MFI Market Share #of Branches #of Employees

Tamweelcom 35% 13 120

Microfund for Women 32% 12 150

National Bank 15% 8 100

MEMCO 9% 13 150

Finca 6% 4 130

AMC 3% 13 75

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Tamweelcom Vision & Mission

Vision 

To enable low-income and productive poor to improve their social and living standards through supporting their micro and small-sized enterprises. 

Jordan Micro Credit Company Tamweelcom was established in 1999 as a limited liability company- non-profit company fully owned by Noor Al-Hussein Foundation, which operates independently under the umbrella of the King Hussein Foundation.

MissionLeading the micro and small-sized enterprises industry in the region by providing the best financial and non-financial services and entrenching sustainable values of creativity and development, as well as adopting best practices and international standards by encouraging and raising the efficiency of a qualified staff that believes in the Company’s vision. 

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Tamweelcom Goals

• Expand outreach locally and regionally.

• Leading the microfinance industry in the region.

• Improve the social performance of Tamweelcom services.

• Increase productivity and efficiency using the best technological and informational tools.

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Tamweelcom Achievements

Conducted the first Social performance rating of its kind in Jordan and received (3+) rating with an observation that the Company is advancing towards better results in the area of social performance management.

Received an (A) Rating in 2009, an (A-) rating in 2007, and (B+) rating in 2005 in the overall conducted by Planet rating.

Received the Middle East regional Social Entrepreneurship Award in 2009 from the Schwab Foundation for its role in maximizing benefits for the society and preserving the environment.

Received a Certificate of Excellence in 2009 for its second place ranking out of the 41 private companies, which competed in the King Abdullah II Award for Excellence for the private sector

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Tamweelcom Achievements

Received the Performance Award in Microfinance for 2009 from Sanabel network in recognition for its distinguished performance in the microfinance industry worldwide.

Took the top position at the national and Arab level among major microfinance institutions in the Arab world in 2008 according to a classification issued by the Microfinance Information Exchange Market (The Mix).

Selected as the MFI of the Month to be featured on the MIX Market homepage on March 2008 among MFI’s in the world.

Classified as one of the best ten micro finance institutions worldwide, MIX classification report for 2007.

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Tamweelcom Achievements

Received CGAP Pro-Poor Innovation Challenge (PPIC) award for 2007, making Tamweelcom the first in the MENA to win such award.

Received Financial Transparency Award for 2006, making Tamweelcom the first to win such award in the Middle East Region .

Officially joined the Micro Finance Network (MFN) in 2006 and became the first company in the Middle East to become a member of this network. MFN is an international association of leading microfinance institutions. Through the MFN, 38 members from 31 countries share ideas, experiences, and innovative solutions to the challenges they face in search of continuous growth and progress. MFN members seek to be models of what is possible in the industry.

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Tamweelcom Achievements

Received CGAP’s Financial Transparency Merit Prize in 2005 for its commitment to the highest standards of micro credit companies.

Became an active member in the MIX Market transparency Website in 2002. In this network, members exchange analytical information specific to their organizations and make the information available to donor and beneficiary agencies around the world.

Joined Sanabel regional network in 2002 for the benefit of exchanging knowledge, information and micro credit capacity building, as the network aims to reach the largest number possible of entrepreneurs in Arab countries.

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Performance Indicatorsas of 28 Feb 2010

Active clients 39,917

Loan Portfolio $14,480,915

Debit to equity 1.25

Operational sustainability 122.8%

Financial sustainability 104.8%

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PAR>30 days 0.17%

Outstanding financial sources

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Bank Outstanding balance 31 Oct 2008

(USD) Development and employment fund 595,362

Housing bank for trade and finance 2,570,423

Societe general 3,063,380

Jordan bank for investment and finance 1,355,596

Arab banking corporation 552,394

Planet finance 997,183

CITIBANK 1,597,746

Total outstanding 10,732,085

Financial projection 2009-2011

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Projections 2008 2009 2010 2011

Total Assets ($MM) 19.0 26.4 35.3 46.1

Loan Portfolio ($MM) 17.8 25.3 34.3 45.1

Active Clients 35,515 49,389 66,975 87,713

Avg. Loan Size ($) 502 512 511 514

No. of Branches 16 17 18 18ROE (adjusted) 28.3% 28.3% 28.2% 26.6%

ROA (adjusted) 10.2% 10.6% 11.4% 11.6%

Financing need 2009 2010 2011 2012 Total(USD 000s) 7,000 7,000 7,000 7,000 28,000