Amman, May 11 (Petra) — The Ministry of Agriculture has signed a tripartite memorandum of understanding to launch a cooperative lending model aimed at empowering smallholder farmers. The initiative falls under the second Dutch Agricultural Support Project for Jordan, funded by the Embassy of the Netherlands and implemented by Val Consulting in partnership with Wageningen University.
The agreement, signed on Sunday in the presence of Minister of Agriculture Khaled Hneifat and Director General of the Jordan Cooperative Corporation Abdul Fattah Al-Shalabi, brings together the Multipurpose Agricultural Cooperative for Dates, the mobile payment company Dinarak, and Val Consulting.
The lending model, known as SACO, is designed to offer revolving, low-interest loans to cooperative members, enabling them to invest in modern, water-efficient agricultural technologies. These tools will be sourced from pre-approved suppliers offering exclusive discounts to the cooperative.
A total of JD60,000 in initial funding has been allocated, to be disbursed through the Dinarak digital wallet platform. The mechanism is expected to ensure transparency and operational efficiency.
Under the agreement, farmers will repay loans via the digital wallet system in installments, while the cooperative will handle full payments to suppliers. The cooperative will also contribute a portion of its annual revenue to cover administrative expenses and support the long-term sustainability of the scheme.
The initiative also includes training for cooperative members in loan and financial management, as well as the use of digital financial tools.
Minister Hneifat described the model as a practical example of financing small farmers through cooperative structures, calling it a step toward greater agricultural productivity and sustainability amid mounting climate and economic pressures.
Al-Shalabi, for his part, said the approach reflects the Cooperative Corporation’s broader efforts to shift cooperatives toward self-financing systems that enhance their role as local development actors.
Raed Al-Saaideh, head of the participating cooperative, welcomed the system as a tool to relieve financial pressure on small farmers and expand their access to modern technology without the burden of traditional credit channels.
Dinarak CEO Emad Al-Oyoun emphasized the role of digital platforms in ensuring reliable and efficient financial transactions. At the same time, Lamia Dabbas of Val Consulting said the lending model captures the essence of the Dutch-supported project by enabling cooperatives to adopt innovative financing tools that strengthen rural resilience and drive sustainable agricultural transformation.
//Petra// RZ
11/05/2025 11:33:15
