MFI Report

* START UP & ESTABLISHMENT:

- Development and Employment Fund was established after a ministers council decision dated on 1/11/1989. As a public “governmental” establishment, this fund takes care of development and finance of small business projects. The fund started its operations in February of 1991 under the umbrella of Industrial Development Bank. However, it became independent after inaction of its private law on 1/9/1992. Consequently, the fund has been enjoying its financial and administrative independence.

* STRATEGIES & GOALS :

1. So as to establish an image of the Fund as a lending organization in the minds of the targeted classes (groups) and other professional and primary organizational in the lending and supportive technical services to support the small and medium size projects in Jordan.
2. Develop the organizational ability of the fund towards an advanced banking level in all aspects: financial, administrative development, and lending. This to be accordance with the mission goals and strategies of the Fund.
3. Develop computerized administrative information system which is able to detect information on the Internet. This will help in making a right administrative decision that is built on classified information which has been dealt with maximum accuracy in every stage of data input stages.
4. Develop mechanisms of self-sustainability in covering the operations’ costs and expenses. This will be through (via):
5. Develop the level and quality of field and academic research and studies in economy, social and production fields, in away to serve the achieving of maximum degree of development and ideal contribution in developing and modernizing the lending policies, procedures and programs. This could be done through the following:
6. Develop communication mechanisms with the targeted groups, with the focus on the quality of these groups to stimulate their development initiation. This could be achieved via methods and tools to achieve the effective positive contribution in the purpose of achieving the Funds mission and developmental goals.

*LENDING ACTIVITIES :

Between (1991-2007) DEF total lending amounted to JD (95,9) million to finance morethan 33250 projects, created 41048 seasonal and permanent job opportunities.

*OUT REACH :

In order to expand its services outreach, DEF embarked on various non traditional methods to provide financial and non financial services through:-

1. DEF’s Branches and offices:
Currently 12 branches for DEF are covering the Kingdom, to extend its activities and to maximize out reach to target groups throughout Jordan governorates, villages and remote areas,.

2. Microfinance Mobile Units (MMU)
In July 2003, DEF start providing its services through the MMU. In order to expand its outreach to the targeted groups, and serve them at their local communities.

3. Civil Service Bureau (CSB)-DEF Liaison office
In September 2003, DEF in cooperation with CSB started providing all the needed services to the unemployed college graduates to start their own business.
4. NAF – DEF Cooperation
In 2004, DEF signed an agreement with the National Aid Fund (NAF) to finance small projects to the beneficiaries of NAF through DEF.
NAF will transfer 50% of the beneficiary monthly aid to DEF as a monthly installment dues on behalf of their beneficiaries.

5. DEF- NITC
A In 2005, DEF with the cooperation of the National Information Technology Center (NITC) signed an MOU to utilize (NITC) 100 knowledge stations dispersed over the kingdom, to provide online loan services to DEF customers from their communities.

6. DEF- SSC
In 2007, DEF signed an agreement and MOU with the Social Security Corporation (SSC) to establish productive projects in which the SSC allocated JD (5) million to DEF to be refinanced to the SSC retirees.

* IMPACT STUDIES :
DEF implemented various field survey of all the funded projects to evaluate the socio-economic impact of the loans on its beneficiaries.

According to the latest survey conducted by the RSS morethan (82%) of the projects financed directly from DEF during 1991-2004 still operating (for more details : www.def.gov.jo)

* King Abdullah II Award for Free Work & Entrepreneurship

A Royal Decree was issued in 2004, to initiate an annual award carrying H.M. King Abdullah II name to be awarded to the best three small projects funded by DEF, directly or indirectly.
This award aim to encourage Jordanian to start their own small project as one of the most ideal way to combat poverty and employment, in addition to promote and foster the culture of microfinance.

* MIX Global 100: Ranking of Microfinance Institution:

The survey highlights the performance of the leading 100 microfinance institutions worldwide in six areas of performance: outreach, scale, profitability, efficiency, productivity, and portfolio quality

1. In 2005 :DEF was among the 300-500 microfinance institutions (MFIs) that been analyzed. DEF ranked in the six area

2. In 2007 :DEF kept its position among the 100 Mix Global 100: Composite Ranking and Ranked 61 out 820 institutions.

* DEF among the 50 Top Microfinance Institutions:

According to Forbes first-ever list of the world's Top 50 Microfinance Institutions, DEF ranked 45 from 641 institutions were chosen from the field of micro-credit providers.
Cacher