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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. - PowerPoint PPT Presentation
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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