JORDAN ENTERPRISEDEVELOPMENTCORPORATIONA 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 Financial Financial Programme (JUMP I). Tools Tools Support to Enterprise & Export JUMP / / JUMP JUMPII JUMPII JSMP/ JSMP/ Development Programme (SEEDP / JSMPII JSMPII JUMP II) Jordan Jordan Jordan Services Modernisation Enterprise Enterprise Programme (JSMP). Development Development Jordan Services Modernisation Corporation Corporation Programme (JSMPII). JIC JIC Network Network Export Export Export Promotion Programme. Promotion Promotion Entrepreneurship and innovation Programme Programme Program (JIC Network)
Industry Support Directorate (JUMP) Achievements up to Year 2010 Activity Grand Total Completed In processConduct studies (FSD, BP, NLP) 139 137 2Signed Agreements to Implement Development plans 103 70 33Conduct Energy Audit and Solar Energy Studies 31 28 3Signed Agreements to Implement 8 8 0Export Consortium 2 2 0Faculty for Factory project 122 109 13Sectorial services 33 18 15Services resulted from development plans 1033 906 127Other activities ( training , workshops , ..etc) 329 329 0Total companies benefited from JUMP 767 701 66Total 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 Scheme 2: Support to Export Development Including Development IncludingCertification and Participation toCertification and Participation to Trade Missions and Trade Trade Missions and Trade ((Events. (50,000 EURO Events. (50,000 EURO Scheme 4: Support to Micro Scheme 4: Support to Micro Enterprises and Start-up Enterprises and Start-up ((Companies.(50,000 EURO Companies.(50,000 EURO Scheme 5: SMEs Scheme 5: SMEs Reinforcements. ((100,000 Reinforcements. 100,000 (EURO (EURO
JSMPII Grant Schemes Scheme 1: Export Development and Scheme 1: Export Development and Participation in Trade Missions and Trade Participation in Trade Missions and Trade (Events (EURO 50,000 (Events (EURO 50,000 Scheme 2: Support for start-ups and Scheme 2: Support for start-ups and innovative services start-ups outside Greater innovative services start-ups outside Greater Amman Municipalities, Qasabet Irbid and Amman Municipalities, Qasabet Irbid and (Zarqa Municipalities (EURO 75,000 (Zarqa Municipalities (EURO 75,000 Scheme 3: Reinforcement of existing services Scheme 3: Reinforcement of existing services MSMEs outside Greater Amman MSMEs outside Greater Amman Municipalities, Qasabet Irbid and Zarqa Municipalities, Qasabet Irbid and Zarqa (Municipalities (EURO 75,000 (Municipalities (EURO 75,000 Scheme 4: Reinforcement of existing services Scheme 4: Reinforcement of existing servicesMSMEs within Greater Amman Municipalities, MSMEs within Greater Amman Municipalities,Qasabet Irbid and Zarqa Municipalities (EURO Qasabet Irbid and Zarqa Municipalities (EURO (75,000 (75,000 Scheme 5: Support for Projects of National Scheme 5: Support for Projects of National(Interest in all Areas of Jordan (EURO 10,000 (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 ToolsThe 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 Indicator Rate of Increase More than 30% 20% - 15% 10% -15%Improvement in Production 14% 27% 45% Increase in Exports 14% 24% 48% Increase in Sales 5% 30% 45% New Markets of the companies 37%
Venture Capital Funds JEDCO was entrusted by the Government of Jordan to sponsor the creation JEDCO was entrusted by the Government of Jordan to sponsor the creation of two venture capital funds dedicated respectively for the early stage and of two venture capital funds dedicated respectively for the early stage and developing SMEs. developing SMEs. The two “Anchor Investors” JEDCO and EIB as follows: The two “Anchor Investors” JEDCO and EIB as follows:Fund First/Target Size GoJ Allocation EIB AllocationEarly Stage US$ 15 million US$ 2 million US$ 2 (not to exceed 30% of (need finance) total commitmentsCapital for Growth EUR 20 million EUR 2 million EUR 5 million (not to exceedFund 25% of total commitments)
SME Financing Programme SME Financing Program Int. JEDCO Banks Guarantors LGF TA Grants Loans •Before•250M •Up to 20% of total Financing $ 25000•60-75% financing needs for Servicescoverage ratio special projects. •After Financingof loan value Services $ 2,000,000
Programme Governorates AmmanTA Before & After Financing As needed As neededProject cost 100% 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 7-8yearsGrace periods 2-3 yearsModerate interest rates Less than prime rate
JIC Network (SCF)Governance Incubated projects Seed Capital Fund Duration Remarks Provided (JD) Amman 62 952,820 2005-2010 Balqa 1 13,920 2011-2012 Irbid 39 571,000 2005-2013 Jerash 2 21,000 2012-2013 New Intervention Karak 4 69,000 2009-2013 Tafeleh 4 55,000 2012-2013 New Intervention Madaba 1 5,000 2012-2013 New Intervention
JSMP I and JUMP II Renewable Energy projects - Supported in the last two years (Start up, Reinforcement and Export Oriented) Governorate Grants Amman 207,504 Balqa 97,989 Aqaba 137,587 Total (9) 443,080 - Application Received Recently Governorate Grants Amman 32,358 Irbid 222,993 Maan 75,000 Madaba 146,200 Mafraq 182,231 Tafeeleh 75,000 Total (13) 733,782
Total number of Beneficiaries from JEDCO’s Different ServicesServices NumberReinforcement 598Start- ups 217Trade Fairs and Trade Missions 2293(Technical Assistance (JSMP& JUMP II 280Total *3388Companies from Governorates – 292:Start-up projects : 145Reinforcement companies: 147
JEDCO’s Budget JEDCO’s Budget 2011- 2007 JEDCO’s Budget 2016- 2012Government 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 210,000,000 $ USAID 31,000,000 $ : Total $100,000,000 Total: 298,000,000 $
Supports enterprises throughout its lifecycle Te c ancin ass hnic ist alFin an ce g