The liwwa team has been busy so far in 2017, extending over $2 million in loans to 55 Small and Medium Enterprises (SMEs) in Jordan and the UAE.
This continues our growth trend, with total principal outstanding increasing 50% in the first half of 2017. Principal outstanding doubled from $1.3 million one year ago to $2.6 million outstanding today.
We are proud to announce that since our inception, our total underwriting to SMEs has now passed $5 million. In light of this milestone, we have updated our initial Economic Impact study, to measure our continued momentum in generating job and income growth in the markets we serve.
This study uses Leontief’s (1996) input-output model to measure the economic impact of our financing in Jordan, in terms of jobs, income and economic output.
Our $4.6 million of lending to Jordanian SME's has generated:
308 jobs supported in Jordan
$1.12 million of income for Jordanians
$8.95 million in output to the Jordanian economy
We are encouraged by the progress we have made since the beginning of 2017, supporting an additional 103 jobs, over $375K in income, and over $3 million in economic output.
Historically, liwwa lending has been evenly split between local purchases and importing goods. This shifted in the first half of 2017, with 72% of liwwa funding being used to import goods, and only 28% of liwwa funding going towards local purchases. This may reflect a trend of increasing sophistication within liwwa's borrower pool, since importing goods is a bureaucratic and complex process that presents a major hurdle to most Jordanian SMEs.
The local purchases financed by liwwa in Jordan increased demand in the following Jordanian industries:
|Industry||% of local purchases|
|Retail & Wholesale Trade||48%|
For the detailed methodology behind the economic impact study and to calculate the impact of your own investments through our platform, please reference our initial post.