The World Bank has disbursed $5.13 million for the second phase of a major project designed to bolster Jordan’s startup ecosystem. This initial payment is part of a total $50 million financing package for the Innovative Startups and SMEs Fund (ISSF), marking the official implementation of a program aimed at fostering innovation and job creation through to 2030.
According to an evaluation report from the World Bank, the project is progressing satisfactorily toward its development goal of supporting innovative startups and small to medium-sized enterprises (SMEs). With the initial disbursement representing 10.26% of the total funding, the project’s investment committee has begun reviewing early-stage investment proposals, aligning with the fund’s strategy.
Project Goals And Key Targets
The second phase of the ISSF project has set ambitious targets to be achieved by 2030. The primary goal is to mobilize $150 million in private capital to fuel early-stage equity investments in high-growth Jordanian companies.
The fund aims to directly support 100 startups, leading to the creation of 1,500 direct job opportunities. The project also has clear diversity and impact-focused indicators, targeting that 30% of beneficiary companies will be owned or managed by women, or have a majority female workforce. Furthermore, 40% of supported companies are expected to be youth-led or have a majority of young employees, with 10% of all investments earmarked for green technology projects.
Phase II Funding Allocation
The $50 million in financing from the World Bank is strategically divided across three main components to maximize its impact on the ecosystem.
The largest portion, $42 million, is allocated for investments through investment funds. An additional $3 million is designated for direct co-investments alongside other investors. The remaining $5 million will be used for project management and capacity-building initiatives to strengthen the operational and institutional framework supporting the fund’s activities.
Building On Phase I Success
This new phase builds upon the significant achievements of the project’s first stage, which was also financed by the World Bank in partnership with the Central Bank of Jordan. The initial phase successfully mobilized over $240 million in private capital and contributed to the creation of more than 2,290 jobs.
The project will continue to leverage the expertise of the International Finance Corporation (IFC) in due diligence processes and co-investment in both startups and regional venture capital funds, ensuring robust support for Jordan’s most promising entrepreneurs.
About The Innovative Startups and SMEs Fund (ISSF)
The Innovative Startups and SMEs Fund (ISSF) is a Jordan-based private shareholding company dedicated to supporting the country’s entrepreneurial ecosystem. Established with the support of the World Bank and the Central Bank of Jordan, the ISSF invests in innovative startups and SMEs to promote economic growth and job creation. It provides both direct and indirect funding through investments in venture capital funds and co-investments in early-stage companies across key sectors like ICT, fintech, healthtech, and greentech.
Source: Al-Ghad
