Jordan and Tunisia have become members of the European Bank for Reconstruction and Development (EBRD) in anticipation of a major investment from the bank.

In August, Mena FM revealed the EBRD’s intention to allocate up to €2.5bn ($3.2bn) to funds across the Southern and Eastern Mediterranean region, and it began meeting with fund managers in Tunisia in mid-September. Its aim is to channel value additive equity into the countries, particularly in the SME sector.

The bank has now begun a three-stage development process in the region with a first flow of technical assistance funded by grants from donors. “The development goal is not to provide subsidised financing,” Anne Fossemalle, director of equity funds at the EBRD, told Mena FM.

“The goal is to attract institutional investors and to demonstrate that it is possible to make attractive risk adjusted returns in this asset class by investing into funds in this region,” she said.