Press Coverage
Tamweelcom launches educational grant programme, 'marketing gateway'
Tamweelcom launches educational grant programme, 'marketing gateway'
With this in mind, one of the Kingdom's major micro-lenders, Tamweelcom, held an event on Saturday to launch an educational grant programme and a newly developed "marketing gateway." "Tamweelcom has looked beyond lending like traditional microfinance institutions. We are providing a value chain service and have introduced new techniquesŠ our clients know that we are not just a loan centre, we are business service providers; and word of mouth is our biggest promoter," Tamweelcom CEO Ziad Rifai told The Jordan Times. The event was held at Al Hussein Park to coincide with the "Souk Ayyadi" bazaar, a direct marketing opportunity the micro-credit company has created to allow its clients to showcase and sell their products to the public. The bazaar is being held there from 6:00-12:00pm and will continue until the end of the month. As part of their marketing gateway, the souk opened a permanent showroom in Jabal Hussein in addition to its virtual showroom. Five entrepreneurs rotate each month showcasing their handmade products such as embroideries, pottery, mosaics, souvenirs and homemade foods. The souk plans to become an annual event in all governorates. So far total sales amounted to more than JD30,000 in Zarqa where the first two-week bazaar was held for 65 small business owners and catered to over 10,000 persons, according to Tamweelcom. Profit from sales averaged between JD500-700 per participant. "The Amman bazaar is our second trial which is proving equally successful. We currently serve five governorates (Amman, Zarqa, Ruseifa, Irbid, Madaba, Aqaba) and plan to reach all 12. Our next bazaar should be in Irbid," Tamweelcom marketing officer Hasan Jamil, said. All Tamweelcom clients receive business cards and printed bags for their sales, while advertising and booths, as well as permanent and virtual showroom use is free of charge. One vendor, Hajjar Al Quaisi, said she received her first loan of JD300 from Tamweelcom two years ago to purchase more home décor for the small business she runs with her husband. Since then, she has received JD700 in total and along with the marketing skills they taught her, she notes that her business supports their family of nine. Her husband, Abed Abu Shama said the small loans come in handy during slow seasons and the only thing he wishes to change in the bazaar is making it last longer. Their average daily sales for hand embroidered table cloths and matching décor is around JD200. "I really cannot complain about any of their services. We are treated with respect and even when we set up our booth, company employees always offer to help display our products and direct customers to us" Abu Shama told the Jordan Times. Tamweelcom accounts for around 40 per cent of the microcredit market in Jordan, and the nonprofit institution now serves 24,000 clients, 93 per cent of them women. "In December last year, we offered service to 18,000 clients. By the end of this year we expect to have 32,000 active clients," Rifai said. The company, established by the Noor Al Hussein Foundation in 1999, became self-sustainable in 2004 and has so far financed 54,000 microentrepreneurs with a total of around JD30 million. The average loan extended is JD500, but clients have the option to apply for between JD200 to JD25,000. Average bank interest rates on loans are around 10 per cent while the institution's administrative expenses charge clients around 14 per cent of a loan, according to Tamweelcom. Rifai said the microfinance industry worldwide in general charges more than banks because of the high risk nature of the lending system. He stressed, however, that operational service costs are high, because unlike traditional banks, a client only needs to visit a location once to pick up a cheque upon approval, and it is Tamweelcom employees who make several visits to potential clients' homes and businesses to assess them and their business ideas. "Whether a client receives JD200 or JD15,000, they receive the same treatment. We visit the clients monthly to assess progress and offer additional help," Rifai said. "Microlending is not a magic tool to eliminate unemployment and poverty but it makes a significant difference in countless lives," he said, noting that although inflation and the population have skyrocketed, unemployment and poverty levels have remained the same, which is a sign that there is "progress". "The trickle-up effect in the microlending approach is effective, but it takes time to change poverty statistics. We document our clients and when we see that a home is nearly empty during our first visit and later the house has a satellite dish, a new oven, a television or living room, we are certain our help is making a difference in their lives," he said. "Our astounding 99.9 per cent payback rate is evidence alone to microfinance success," he added. Educational grants Also during Saturday's event, Her Majesty Queen Noor officially launched the company's annual educational grant programme by handing out grant certificates to 12 of the 1,000 recipients. The JD50 grants will be paid directly to schools to cover tuition fees, uniforms, books, stationery and daily pocket money. Tamweelcom adopted the school grant concept as a corporate social responsibility effort after recent statistics showed 6,381 dropouts in Jordan, according to the company. In her address at the event, Queen Noor stressed the importance of microfinance institutions. "Not only does microfinance empower individuals to achieve sustainable development in their communities, it provides a viable pathway to peace; by enabling populations to break out of poverty, lasting peace can be achieved," she said. Meanwhile, two awards won by Tamweelcom were officially presented to Queen Noor during the ceremony. Earlier this year, the company received the 2006 Financial Transparency Award from the Consultative Group to Assist the Poor (CGAP), a World Bank monitoring arm that operates from Washington. The award recognises microfinance institutions that comply with international financial reporting standards and CGAP's microfinance disclosure guidelines. The second international award, however, is a greater achievement according to Rifai. "Receiving the Pro-Poor Innovative Challenge Award was a real honour that recognised our hard work in developing new products to help combat poverty and unemployment. We are proud to be one of five institutions worldwide and the first institution in the region to receive this prestigious recognition," he said.
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Press Coverage 
AMMAN — Microfinance is in no way charity, rather it is a proven effective tool to assist low-income families move beyond hand-to-mouth survival and plan for the future.