Policy Briefs
Empowering MSMEs in Jordan: Driving Sustainable Economic Growth through the Renewable Energy Transition
No.
PB 133
Publisher
ERF
Date
October, 2024
In a nutshell
- Micro, Small, and Medium Enterprises (MSMEs) constitute over 99% of Jordan’s enterprises and employ 60% of its workforce. Despite their economic significance, MSMEs face challenges such as limited access to finance and regulatory hurdles. This policy brief examines how MSMEs can contribute to and benefit from Jordan's renewable energy (RE) transition.
- Jordan’s renewable energy sector has grown from less than 1% of the energy mix in 2014 to 21% by 2021, with a target of 31% by 2030. MSMEs are strategically positioned to play a key role in this transition by engaging in decentralized energy production, leveraging innovation, and contributing to job creation.
- MSMEs can benefit from technologies like solar PV and small wind turbines, producing energy locally, reducing costs, and enhancing energy security, especially in underserved areas.
- MSMEs can develop energy-efficient technologies, energy storage solutions, and green consulting services, fostering economic growth and competitiveness.
- The RE sector offers opportunities for MSMEs in installation, maintenance, and manufacturing, contributing to economic diversification and reducing dependence on fossil fuels.
- MSMEs struggle with high upfront costs of RE projects and limited access to affordable financing.
- Complex and inconsistent regulations make it difficult for MSMEs to engage in the RE sector.
- MSMEs face a shortage of skilled labor and technical knowledge in renewable energy technologies.
- Enhance access to affordable green financing.
- Simplify regulatory processes for RE projects.
- Invest in technical training and infrastructure to support MSMEs’ transition to renewable energy.
Policy Affiliates
Ibrahim Saif
CEO, Jordan Strategy Forum
Speakers
Ahmad Awad
General Director, Phenix Center for Economic and...