Initial market assessment for resilient nature-based water solutions in Wadi Seer, Jordan

Dabbas, L.; Belhaj Fraj, Makram; Fragaszy, Stephen Russell; Samarasekara, Vidhisha. 2024. Initial market assessment for resilient nature-based water solutions in Wadi Seer, Jordan. Colombo, Sri Lanka: International Water Management Institute (IWMI). 40p. [doi: https://doi.org/10.5337/2025.211]

This study is a part of the Al Murunah project funded by the Foreign, Commonwealth & Development Office (FCDO), UK, and implemented by the International Water Management Institute (IWMI) in collaboration with the International Union for Conservation of Nature (IUCN). Its overarching goal is to increase water security in Jordan in the face of climate change and land degradation, particularly targeting Wadi Seer by promoting Resilient Nature-Based Water Solutions (RNBWS). To this aim, study explores the market potential for scaling up and scaling out financial mechanisms for RNBWS, specifically focusing on empowering women and youth cooperative enterprises and contributing to spring restoration.

The study is guided by the Market Systems Development (MSD) approach, which delves into financing options like loans, saving and loans group, and revolving loans for RNBWS initiatives. It aims to understand the barriers to scaling up and out these mechanisms, particularly for vulnerable groups, and develop strategies to overcome them.

The key challenges faced by the agricultural finance sector in Jordan include limited access to formal financing, high interest rates, and administrative hurdles. Informal sources dominate, leaving small farmers with few options. To address this drawback, the study identifies priority farming groups, including women-led businesses and youth cooperatives, for targeted financial product development.

Financial products for RNBWS projects vary ranging from zero-percent interest loans to savings and loan groups. Testing potential products involved developing different options and assessing feedback on timeliness, risk responsibility, and feasibility. Revolving loans, savings and loan groups, and zero-interest loans emerged as promising candidates for future pilot testing.