JORDAN ENTERPRISE DEVELOPMENT CORPORATION

A Tool to Develop Private Sector SMEs

Corporate Governance

JEDCO is overseen by a Board headed by H.E. Minister of Industry and Trade and is comprised from 6 representative of the public Sector and 10 representatives of the private sector.

JEDCO Programmes Jordan Upgrading and Modernisation Programme

(JUMP I). Support to Enterprise & Export

Development Programme (SEEDP / JUMP II) Jordan Services Modernisation Programme (JSMP). Jordan Services Modernisation Programme (JSMPII). Export Promotion Programme. Entrepreneurship and innovation Program

(JIC Network) Financial Tools

Jordan Enterprise

Development

Corporation

Jordan Enterprise

Development

Corporation

Financial Tools

Financial Tools

JSMP/ JSMPIIJSMP/ JSMPII

JIC Network

JIC Network

Export Promotion

Programme

Export Promotion

Programme

JUMP / JUMPIIJUMP / JUMPII

Industry Support Directorate (JUMP) Achievements up to Year 2010

Activity Grand TotalCompleted In process

Conduct studies (FSD, BP, NLP) 1391372

Signed Agreements to Implement Development plans

1037033

Conduct Energy Audit and Solar Energy Studies31283

Signed Agreements to Implement 880

Export Consortium220

Faculty for Factory project 12210913

Sectorial services331815

Services resulted from development plans1033906127

Other activities ( training , workshops , ..etc) 3293290

Total companies benefited from JUMP 76770166

Total services supported by JUMP 15651418147

Impact of the Support to JUMP clients

Indicator%

Total Sales (000 JD)73%

Exports (000 JD)116%

Gross Profit (000 JD)56%

Net Profit before Tax (000 JD)28%

Employees17%

JSMPII

JEDCO in cooperation with the EUD are launching JSMP II programme with an estimated budget of EUR 15 million, EUR 12.2 million Direct Grants to MSMEs to cover 5 different schemes.

JUMPII

JEDCO in cooperation with the EUD are extending JUMPII programme with an estimated budget of EUR 10 million, EUR 12.5 million Direct Grants to MSMEs to cover 3 different schemes.

JUMPII Grant Schemes

Scheme 2: Support to Export Development Including

Certification and Participation to Trade Missions and Trade

Events. (50,000 EURO)

:Scheme 4 Support to Micro Enterprises and Start-up

Companies.(50,000 EURO)

:Scheme 5 SMEs Reinforcements. ( 100,000

(EURO

Scheme 2: Support to Export Development Including

Certification and Participation to Trade Missions and Trade

Events. (50,000 EURO)

Scheme 4: Support to Micro Enterprises and Start-up

Companies.(50,000 EURO)

Scheme 5: SMEs Reinforcements. ( 100,000

EURO)

JSMPII Grant SchemesScheme 1: Export Development and

Participation in Trade Missions and Trade Events (EURO 50,000)

Scheme 2: Support for start-ups and innovative services start-ups outside

Greater Amman Municipalities, Qasabet Irbid and Zarqa Municipalities (EURO

75,000)

Scheme 3: Reinforcement of existing services MSMEs outside Greater Amman Municipalities, Qasabet Irbid and Zarqa

Municipalities (EURO 75,000)

Scheme 4: Reinforcement of existing services MSMEs within Greater Amman Municipalities, Qasabet Irbid and Zarqa

Municipalities (EURO 75,000)

Scheme 5: Support for Projects of National Interest in all Areas of Jordan

(EURO 10,000)

Scheme 1: Export Development and Participation in Trade Missions and Trade

Events (EURO 50,000)

Scheme 2: Support for start-ups and innovative services start-ups outside

Greater Amman Municipalities, Qasabet Irbid and Zarqa Municipalities (EURO

75,000)

Scheme 3: Reinforcement of existing services MSMEs outside Greater Amman Municipalities, Qasabet Irbid and Zarqa

Municipalities (EURO 75,000)

Scheme 4: Reinforcement of existing services MSMEs within Greater Amman Municipalities, Qasabet Irbid and Zarqa

Municipalities (EURO 75,000)

Scheme 5: Support for Projects of National Interest in all Areas of Jordan

(EURO 10,000)

Governate Development Fund Eligibility Criteria

Project’s Eligibility Criteria Project’s owner contribution not less than 10% of total project cost. A minimum of 60% Jordanian employees.

• Economically feasible projects, with high economic and social added value, ability to create employment opportunities, substitute foreign employment, export potentials with clustering opportunities with other sectors.

• Fund’s contribution ranges between a minimum of 26% to a maximum of 49% of total project’s cost.

• Fund’s minimum investment size is JOD 50,000• The Fund will invest in projects with a minimum cost of JOD 100,000

Investment Tools

The Governorate Development Fund will invest in productive and income generating projects using non traditional financing tools:

• Equity Investment: holding shares in projects’ capital for a certain period of time not exceeding 8 years and sharing profits and losses with the owners instead of paying periodical repayments.

• Convertible Bonds: financing bonds (partner’s loan) to be converted into shares based on a pre-agreed upon requirements as determined in partnership agreement.

• Quasi Equity: a hybrid tool that combines between equity and debt features, repayment and profit sharing to be determined in the partnership agreement.

Export PromotionCompanies Participation in Trade Fairs

Impact of the Export Promotion Support

IndicatorRate of Increase

More than 30%

15% - 20%10% -15%

Improvement in Production

14%27%45%

Increase in Exports14%24%48%

Increase in Sales5% 30%45%

New Markets37% of the companies

Venture Capital Funds

JEDCO was entrusted by the Government of Jordan to sponsor the creation of two venture capital funds dedicated respectively for the early stage and developing SMEs.

The two “Anchor Investors” JEDCO and EIB as follows:

JEDCO was entrusted by the Government of Jordan to sponsor the creation of two venture capital funds dedicated respectively for the early stage and developing SMEs.

The two “Anchor Investors” JEDCO and EIB as follows:

FundFirst/Target Size GoJ Allocation EIB AllocationEarly StageUS$ 15 millionUS$ 2 million

(need finance)US$ 2 (not to exceed 30% of total commitments

Capital for Growth Fund

EUR 20 millionEUR 2 million EUR 5 million (not to exceed 25% of total commitments)

SME Financing Programme

SME Financing Program

Int. Guarantors

JEDCO

LGF

•250M•60-75% coverage ratio of loan value

TA

•Before Financing Services•After Financing Services

Grants

•Up to 20% of total financing needs for special projects.

Banks

Loans $ 25000 $ 2,000,000

SME Financing Programme

Governorates Amman

TA Before & After FinancingAs neededAs needed

Project cost100%100%

Owner (contribution)0-15%0-15%

Grant ( of the financing needs)Up to 20%NA

Loan (Guarantee coverage)75%60%

Collaterals (Max)35 %50%

Med term loans 7-8years

Grace periods 2-3 years

Moderate interest ratesLess than prime rate

JIC Network (SCF)

GovernanceIncubated projectsSeed Capital Fund Provided (JD)

DurationRemarks

Amman62952,8202005-2010

Balqa113,9202011-2012

Irbid39571,0002005-2013

Jerash221,0002012-2013New Intervention

Karak469,0002009-2013

Tafeleh455,0002012-2013New Intervention

Madaba15,0002012-2013New Intervention

Tafileh 1000 residence

JSMP I and JUMP II Renewable Energy projects

- Supported in the last two years (Start up, Reinforcement and Export Oriented)

Governorate GrantsAmman 207,504 Balqa 97,989 Aqaba 137,587

Total (9) 443,080 - Application Received Recently

Governorate GrantsAmman 32,358

Irbid222,993Maan75,000

Madaba146,200Mafraq182,231

Tafeeleh75,000Total (13)733,782

Total number of Beneficiaries from JEDCO’s Different Services

Services Number

Reinforcement598Start- ups 217

Trade Fairs and Trade Missions2293

Technical Assistance (JSMP& JUMP II)280

Total3388*

Companies from Governorates – 292:Start-up projects : 145Reinforcement companies: 147

JEDCO’s Budget

JEDCO’s Budget 2011- 2007

Government of Jordan 25,000,000 $

EU Grants 42,000,000 $

Donors33,000,000 $

100,000,000$ Total :

JEDCO’s Budget 2016- 2012

Government of Jordan 25,000,000 $

EU Grants 32,000,000 $

Governorate Development Fund210,000,000 $

USAID31,000,000 $

Total: 298,000,000 $

Supports enterprises throughout its lifecycle

Financin

g

Technical assistance