Rural Economic Growth and Employment Project (REGEP)

REGEP is an agricultural development project funded by the International Fund for Agricultural Development (IFAD). REGEP came into being after financing agreement related to the six-year between the Hashemite Kingdom of Jordan represented by the Ministry of Planning and International Cooperation (MOPIC) and the International Fund for Agricultural Development (IFAD) entered into force on 25 March 2015, with an original completion date set on 31 March 2021. An Additional Financing (AF) Agreement, combined with a three-year extension, entered into force in September 2020.

The Jordan Enterprise Development Corporation (JEDCO) manages the project through the Rural Economic Growth and Employment Project unit, which was established to manage and monitor the implementation of the project’s activities, as well as progress and achievements.

Objectives

• Improving access to finance in rural areas, by building technical and competitive capacities among small farmers and small- and medium-sized agricultural companies.
• Integration of smallholder farmers into value chains.
• Creation of employment opportunities in rural areas for women and youth.
• Contributing to economic growth and increasing incomes.
• Increasing agricultural exports of fruit and vegetables.

Target governorates:

Ajloun, Jarash, Al Balqa, Madaba, Al Mafraq, Irbid, Zarqa, Karak, Tafilah and Ma’an.

Target groups:

• Jordanian or Syrian refugees .
• Rural households working in the agricultural sector with no stable income source and no employed or economically active family members (included Syrian refugees).
• Rural households with employed earners but insufficient income.
• Small producing farmers of vegetables and fruits.
• Small and medium-sized agricultural companies.
   
• Partners:

JEDCO implements the project and its components through a group of partners according to the agreements signed with them. These partners, and the services they provide, are as follows:

• National Agricultural Research Center (NARC): Provides Farmer Field Schools (FFS) services for high-value crops, with the aim of improving good agricultural practices and encouraging the adoption of modern technologies. In addition, seeks to qualify farmers for ‘good agricultural practices’ (GAP) certificates.
• Jordan Standards and Meteorology Organization (JSMO): Provides awareness training for farmers and exporters regarding Global GAP certificate requirements. Also performs the inspections required for granting Global GAP certificates to farmers, farmers’ associations, processors and exporters.
• Jordan Exporters and Producers Association for Fruit and Vegetables (JEPA): Establishes contract farming linkages between small farmers and large producers, retailers, suppliers, and exporters. Also participates in the implementation of market studies, training courses, workshops, study tours and trade fairs.
• Non-governmental organization (NGO): Development and Support of Saving and Credit  Groups and Associations and Business Mentoring and Marketing and Specific Training for Farmer Groups / Associations.
• Central Bank of Jordan (CBJ): Responsible for implementing the rural finance component. Does this through the micro-, small- and medium-sized financial institutions slated to provide lending services to the target groups.

The main components of the project:

1. Value chain and enterprise development

This component aims to integrate small-farmers into the value chain. It aims to do this in the following ways: activating small farmer participation in value chains; building technical capacity; improving business capacity; encouraging small farmers to form groups and associations; improving value chain efficiency; and developing value chain efficiency through increased exports of high-value vegetables and fruits. This will help create jobs in rural areas. The ‘value chain and enterprise development’ component is managed by JEDCO, in cooperation with NCARE, JEPA, JSMO and NGO.

Grants to support upgrading value chains, as well as business model innovation for small and medium enterprises and Adaptation to Climate-aggravated Water Scarcity

• The first window: support to agri-business/production projects (GROUP AND INDIVEDUAL GRANTS).
  Grants amount: Up to 2000 USD for individual grants and up to 6000 USD for group grants.
   
• The second window: Upgrade business and introduce innovations (the main purpose is value chain strengthening) (GROUP AND INDIVEDUAL INNOVATION GRANTS )
  Grants amount: Up to 4000 USD for individual grants and up to 12000 USD for group grants.

2. Rural finance
   This component is implemented through CBJ in partners with commercial banks and the Microfinance institutions (MFIs) under the supervision of JEDCO. Through CBJ the Rural Finance Fund (RFF) will be established in collaboration with the MFIs to finance bankable smallholders, entrepreneurs and MSMEs in project supported sectors and locations, through a set of structural interventions, operational interventions and market development interventions. These target groups may take the form of individuals, groups or associations. In addition, the ‘rural finance’ component will provide capacity building and systems upgrading assistance to CBJ.

Financing activities related to agriculture, such as financing production requirements, distribution, wholesale trade, and marketing.

Rural funding is divided into two types:

First: Microenterprise financing through the Microfinance Institutions: The value is up to 6,500 JD for micro-projects.

Second: Financing Small and Medium Enterprises through CBJ: The value is up to 50,000 dinars for small and medium enterprises and individual farmers.

Adaptation to Climate-aggravated Water Scarcity:

-  Grants for rainwater harvesting at household level:

- Grants for hydroponic and other water efficient irrigation systems:

For more information

Jordan Enterprise Development Corporation(JEDCO)

Project Management and Coordination Unit (PMCU)

Tel.: 00962 (6) 5603507 ext.: 2095 /2400 /2084/2930