The World Bank has announced that it will release $300mn in loans to help facilitate the labour market for Syrian refugees in Jordan. The $300mn loan and credit is being provided on concessional terms through the Global Concessional Financing Facility, a new initiative supported by Canada, European Commission, Germany, Japan, Netherlands, Norway, UK and US to address refugee crises in middle income countries, and an exceptional International Development Association (IDA) allocation, at rates usually reserved for the poorest countries.
“As part of the broad international community’s effort to mitigate the impact of the Syria crisis on Jordan, we at the bank, with help and support from a number of partners, notably the UK, are supporting the country in turning what is a major economic and development challenge into an opportunity,” said Ferid Belhaj, director of the World Bank’s Middle East department.
“By creating the conditions for increased investment and jobs, and by allowing refugees, during their time in the country, to seek work and contribute to the economy, Jordan is shifting from a purely humanitarian approach to a forward looking development drive.
The Jordanian government is to be commended for its foresight and vision and for leading the way for the international community on what still today are unchartered territories.”
As part of the Program and in support of the Jordan Compact implementation, an increasing number of Syrians will receive work permits to be able to access formal jobs and decent labour conditions.
A partnership among the Jordanian government, donor countries and development actors will improve the investment climate and investment promotion to attract international and domestic investments.
The operation is the first one to be approved as part of the bank group’s new Country Partnership Framework for Jordan released in July 2016.
It uses the Program-for-Results financing instrument to disburse directly against achieved results, which will help Jordan develop new market opportunities that can attract new investments.
Reforming Jordan’s labour market regulations will grant Syrian refugee workers access to the formal labour market and allow them to legally contribute to Jordan’s economic activity.
Improving Jordan’s investment climate will reduce red tape and support small businesses and trade facilitation.
Attracting and retaining investments both domestic and foreign will be key, especially in manufacturing and in SEZs that will benefit from preferential access to the EU.
The foreign investments will most likely come from the Syrian business diaspora; regional investors; and investors targeting the EU market.