Jordan—Macroeconomic Advisory Support for the Government of Jordan

Jordan’s economy has been buffeted by repeated shocks for more than a decade. Key risks facing Jordan include higher-than-expected tightening by the US Federal Reserve, forcing commensurate tightening by the Central Bank of Jordan; worsening food and energy security linked to geopolitical events in Eastern Europe and East Asia; climate events, including extended dry periods; and shocks to investor confidence in the emerging markets more broadly.

The Macroeconomic Advisory Support to the Government of Jordan project aims to deliver demand-led technical assistance supporting macroeconomic management, especially financing strategies and debt management, and support to the energy and water sectors on financial sustainability.

Our partner in this project is investment bank Lion’s Head Global Partners which has been working with the Government of Jordan on macro financial and sectoral advisory projects since 2016 and has collaborated with DAI on several initiatives. Together we are uniquely positioned to leverage our technical expertise, partner networks, and on-the-ground assets across the country to deliver trusted, high-quality advice to the Jordanian Government. Our aim is to assist the Government with planning, advancing, and implementing reforms that enhance macroeconomic stability.

Our targeted technical assistance will provide support in four key areas: 1) central debt management, 2) financial management in the energy sector, 3) financial management in the water sector, and 4) additional demand-led ad-hoc macroeconomic technical and advisory support.

Sample Activities

• Central debt management: Support the Ministry of Finance with analysis and advice to ensure the conditions of the IMF Extended Funding Facility program are met.
• Financial management in the energy sector: Financial modeling/appraisal of options to implement key energy sector reforms that have been developed to increase efficiency and return the National Electric Power Company to cost recovery by 2030. Strategic support to the Government of Jordan to negotiate financial agreements with International Financial Institutions and the private sector.
• Financial management in the water sector: Analysis of financial data from the water sector, including debt, deficit, and losses analysis.