In a groundbreaking initiative to strengthen Jordan’s economy and advance sustainable finance, the Jordan Kuwait Bank (JKB) and USAID Business Growth Activity signed a letter of agreement to develop Jordan’s first sustainable supply chain finance (SCF) platform. This innovative platform will address key challenges faced by local suppliers and SMEs, including limited access to affordable financing, prolonged cash conversion cycles, and restricted market opportunities. By providing a streamlined digital solution, the SCF platform will enable participating SMEs to access flexible, cost-effective financing based on their verified supply chain transactions. This initiative not only strengthens the competitiveness of local businesses but also reduces reliance on traditional credit assessments, making financing more accessible to those who might otherwise face barriers.
The SCF platform is a significant milestone in Jordan’s digital transformation journey. With an intuitive digital interface, financiers can fund transactions all within a unified digital ecosystem. This approach not only streamlines supply chain financing but also promotes financial inclusion, providing underserved SMEs with access to digital financial services.
“USAID is proud to collaborate with Jordan Kuwait Bank on this transformative initiative,” said USAID/Jordan Mission Director Leslie Reed. “This program will open up new pathways for Jordanian businesses to access equitable and environmentally conscious financing. By helping local businesses grow sustainably, we are contributing to a stronger, more resilient Jordanian economy.”
Mr. Haethum Buttikhi, CEO of Jordan Kuwait Bank, said “Jordan Kuwait Bank is committed to driving meaningful change in Jordan’s financial and business sectors. Through our partnership with USAID Business Growth Activity, we aim to provide SMEs with accessible financing options while incentivizing sustainable practices within Jordan’s supply chains. This initiative will serve as a catalyst for creating a resilient, inclusive, and environmentally responsible economy.
Mr. Buttikhi added “At Jordan Kuwait Bank, we believe that innovation in finance must align with a commitment to sustainability. By supporting this platform, we’re not only providing much-needed financial support to SMEs but also encouraging businesses to adopt practices that benefit our environment and our economy alike. We’re proud to lead this effort and look forward to its positive impact across Jordan.”
SMEs are the backbone of Jordan’s economy, driving job creation, innovation, and economic growth. However, many SMEs struggle to secure financing, often due to a lack of traditional collateral or lengthy invoice processing cycles. The SCF platform provides a solution by advancing funds to SMEs based on receivables, reducing cash flow pressures and enabling sustainable growth.
This joint initiative between Jordan Kuwait Bank and USAID comes as the United States is celebrating 75 years of partnership with the Government of Jordan and demonstrates the power of partnership in addressing economic and environmental challenges. The development of Jordan’s first sustainable SCF platform will positively impact Jordan’s economy by bridging the financing gap for SMEs, reducing barriers to entry for smaller suppliers, and driving the adoption of sustainable business practices, ultimately leading to a more dynamic, inclusive, and green economy.
