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
Financial Tools
JUMP / JUMPII
JSMP/
JSMPII
Jordan
Enterprise
Development
Corporation
JIC Network
Export Promotion
Programme
Industry Support Directorate (JUMP) Achievements
up to Year 2010
Activity
Grand Total
Completed
In process
Conduct studies (FSD, BP, NLP)
139
137
2
Signed Agreements to Implement Development plans
103
70
33
Conduct Energy Audit and Solar Energy Studies
31
28
3
Signed Agreements to Implement
8
8
0
Export Consortium
2
2
0
Faculty for Factory project
122
109
13
Sectorial services
33
18
15
Services resulted from development plans
1033
906
127
Other activities ( training , workshops , ..etc)
329
329
0
Total companies benefited from JUMP
767
701
66
Total services supported by JUMP
1565
1418
147
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
Employees
%17
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)
JSMPII Grant Schemes
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 Promotion
Companies Participation in Trade Fairs
Impact of the Export Promotion Support
Indicator
Rate of Increase
More than 30%
15% - 20%
10% -15%
Improvement in Production
14%
27%
45%
Increase in Exports
14%
24%
48%
Increase in Sales
5%
30%
45%
New Markets
37% 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:
Fund
Early Stage
Capital
Fund
for
First/Target Size
US$ 15 million
Growth EUR 20 million
GoJ Allocation
US$ 2 million
(need finance)
EUR 2 million
EIB Allocation
US$ 2 (not to exceed 30% of
total commitments
EUR 5 million (not to exceed
25% of total commitments)
SME Financing Programme
SME Financing Program
Int. Guarantors
LGF
•250M
•60-75%
coverage ratio
of loan value
JEDCO
TA
Banks
Grants
• Before Financing • Up to 20% of total
Services
financing needs for
• After Financing
special projects.
Services
Loans
$ 25000
$ 2,000,000
SME Financing Programme
Governorates
TA Before & After Financing
Amman
As needed
As needed
Project cost
100%
100%
Owner (contribution)
0-15%
0-15%
Up to 20%
NA
Loan (Guarantee coverage)
75%
60%
Collaterals (Max)
35 %
50%
Grant ( of the financing needs)
Med term loans
7-8years
Grace periods
2-3 years
Moderate interest rates
Less than prime rate
JIC Network (SCF)
Governance
Incubated projects
Seed Capital Fund
Provided (JD)
Duration
Amman
62
952,820
2005-2010
Balqa
1
13,920
2011-2012
Irbid
39
571,000
2005-2013
Jerash
2
21,000
2012-2013
Karak
4
69,000
2009-2013
Tafeleh
4
55,000
2012-2013
New Intervention
Madaba
1
5,000
2012-2013
New Intervention
Remarks
New 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
Amman
Balqa
Aqaba
Total (9)
Governorate
Amman
Irbid
Maan
Madaba
Mafraq
Tafeeleh
Total (13)
Grants
207,504
97,989
137,587
443,080
- Application Received Recently
Grants
32,358
222,993
75,000
146,200
182,231
75,000
733,782
Total number of Beneficiaries from JEDCO’s
Different Services
Services
Number
Reinforcement
Start- ups
598
217
Trade Fairs and Trade Missions
2293
Technical Assistance (JSMP& JUMP II)
280
Total
3388*
Companies from Governorates – 292:
Start-up projects : 145
Reinforcement companies: 147
JEDCO’s Budget
JEDCO’s Budget 2007 -2011
JEDCO’s Budget 2012 -2016
Government of Jordan
25,000,000 $
Government of Jordan
25,000,000 $
EU Grants
42,000,000 $
EU Grants
32,000,000 $
Donors
33,000,000 $
Governorate Development Fund
Total:
100,000,000 $
USAID
Total:
210,000,000 $
31,000,000 $
298,000,000 $
Supports enterprises throughout its lifecycle
Start Up
Transition
Growth
Business
lifecycle
Maturity
Expansion
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Total - in EDAMA