On Sunday, Jordan's Ministry of Agriculture signed a tripartite Memorandum of Understanding to launch a cooperative lending system aimed at supporting small-scale farmers. The initiative is part of the Second Dutch Agricultural Support Project for Jordan, funded by the Netherlands Embassy and implemented by Advance Consulting (VAL Consulting Services) in collaboration with Wageningen University in the Netherlands.
اضافة اعلان
The signing ceremony, attended by Minister of Agriculture Eng. Khaled Hneifat and Director General of the Jordan Cooperative Corporation Abdel Fattah Al-Shalabi, included the president of the Multi-Purpose Agricultural Dates Cooperative, Raed Mohammad Al-Saaydeh, CEO of the Integrated Mobile Payment Services Company (Dinarak) Eng. Imad Al-Ayoun, and VAL’s Regional Director, Eng. Lamia Al-Dabbas.
Minister Hneifat highlighted the initiative as a practical model for financing small farmers through cooperatives, enhancing agricultural productivity and sustainability amid economic and climate challenges.
The SACO system aims to provide revolving microloans to cooperative members to help them acquire innovative, water-saving agricultural technologies from certified suppliers who will offer exclusive discounts to the cooperative.
A fund of 60,000 Jordanian dinars will be disbursed via the Dinarak e-wallet, ensuring transparency and efficient implementation.
The agreement also includes training programs for cooperative members in loan management, financial literacy, and use of digital wallets. To ensure sustainability, a portion of the cooperative’s annual revenues will be allocated to cover administrative costs and support system operations via the digital wallet. Certified suppliers will be paid in full directly by the cooperative, while farmers will repay the loans through flexible installment plans using the e-wallet.
Al-Shalabi stated that the model aligns with the Cooperative Corporation’s strategy to empower cooperatives with self-sustaining financial systems, transforming them into local development institutions.
Raed Al-Saaydeh praised the initiative, saying it will ease the financial burden on farmers and enable them to adopt modern technologies without resorting to traditional financing.
Eng. Al-Ayoun expressed Dinarak’s pride in contributing to the initiative, emphasizing the role of digital financial solutions in improving efficiency and reliability.
Eng. Al-Dabbas affirmed that the model embodies the core mission of the Dutch agricultural support project—empowering cooperatives through innovative, independent financial tools that promote sustainable agricultural transformation and strengthen the resilience of rural communities.
