SMEs Financing and Loan Guarantees
24-25 November, Amman, Jordan
Coordination of Assistance to SMEs:
National and International
Dr. Sherwood
McGinnis
Financial Services
Volunteer Corps
Coordination of Assistance to SMEs –
Outline of Presentation
• Better coordination of donor and public and
private sector efforts is needed – the reasons
why
• Experience from previous assistance programs
• Current examples from the SME field
• A new framework
• Recommendations
Better coordination of donor and public
and private sector efforts needed
Why is coordination a requirement?
• Avoids duplication of effort
• Provides a focused plan of action (cannot
“let a thousand flowers bloom”)
• Enhances management of the overall
effort
• Makes best use of limited resources
Experience from previous assistance
programs
• Bosnia reconstruction – building the road to
Goradze in order to preserve the peace
• Afghanistan Rule of Law – the Interagency
Planning and Implementation Team (IPIT): an
interagency, inter-governmental body
coordinating rule of law efforts throughout
Afghanistan, across a range of issues (judges,
prosecutors, prisons, justice centers, law schools,
Ministries of Justice and Interior, corrections,
investigators, UN, EU, US, Canada, UK)
Current Examples from the SME field
Over the past 20 years a number of studies have
been undertaken and programs have been
initiated – examples include:
• SME financing – JLGC, JLGF, EBRD, Ahli Bank,
EU – Deauville, USAID (part of JLGF)
• Registration and Licensing – FSVC, WB, IFC
• Assisting MSMEs – USAID LENS and JCP, EU
programs, other individual donors, private
sector – including Jordan Strategy Forum and
the Jordan Chamber of Industry
SME-related programs in Jordan
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Sharaka program – UK, JEDCO/MOPIC, Business Development Council
JEDCO programs – supported by the EU
Small business support (SBS) – EBRD
Local Enterprise Facility – EBRD
Local Enterprise Support Activity (LENS) - USAID
Jordan Competitiveness Program (JCP) - USAID
Jordan Loan Guarantee Facility - OPIC and USAID
Jordan Loan Guarantee Corporation - GOJ
FSVC’s grant to address obstacles/hindrances for SMEs - MEPI/U.S.
State Department
ACRLI bankruptcy/dissolution - MEPI/U.S. Department of State
JICA Human Resource Development and Social Infrastructure
Improvement - Japan
Assistance to SMEs (licensing and inspection, good corporate
governance) – Ahli Bank/Central Bank of Jordan/IFC/CGAP
Micro, Small and Medium Enterprise Technical Assistance Facility –
World Bank/IFC/Canada/DFATD
Micro financing - FINCA
SME-related programs in Jordan
• Private Sector Development in the Southern Mediterranean - EU/ENPI
• Strengthening Microfinance Sector in the MENA Region – GIZ/Germany
• Development and Employment Fund – Islamic Development Bank/Jordan
River Foundation
• Economic and Social Productivity Programs Unit (ESPP) – MOPIC
• Noor Al Hussein Foundation (Jordan Micro Credit – Tamweelcom; Capacity
Building and Business Services Development; Community Development
Program; Local Development Program for Less Privileged Areas – GOJ
• Mitigating Impact of Syrian Refugee Crisis on host communities –
UNDP/JICA
• Youth Employment Generation in Arab Transition countries – UNDP
• Women’s economic empowerment - UN Women
• Aqaba – community and economic development – USAID
• Jordan Fiscal Reform – MOPIC/Ministry of Finance/USAID
• Jordan Civic Engagement Project (CEP) – USAID
• Jordan Tourism Program – USAID
• Jordan Emergency Services and Social Resilience Program – World Bank
• Municipal local economic development (Zarqa, Mafraq, Karak, Tafelah) –
World Bank/RLDP
A new framework for SME Coordination
• An SME coordinating body below the current UNCT
and UNDAF/NRP level: members of this body would
meet on a regular basis to set priorities, share best
practices, identify areas of duplication, etc.
• The body would be co-chaired by MOPIC or MIT as well
as a UN rep (UNDP), a donor rep (UK, USAID, EU) and
the private sector (Jordan Chamber of Industry).
• Other representatives from the Jordan Strategy
Forum, the Business Development Council, relevant
ministries and departments, the Parliament, business
associations, international financial institutions,
national donors, and NGOs would be included.
• A secretariat would be established to coordinate
meetings and provide current, updated information to
members of the coordinating body.
Summary - Recommendations
The following actions should be implemented as part of a
coordinated framework for enhancing the role and
success of SMEs in Jordan:
• Establish a joint coordination lead (GOJ, donors, and
the private sector)
• Identify each of the pertinent players
• Schedule regular meetings to set priorities and an
agreed game plan/strategy
• Establish a mechanism to share information on what
each party is doing, thus ensuring no duplication of
effort – this data should be regularly updated
• Establish a committee/WG to interact with GOJ and
parliament on regulations and legislation