Jordan Launches Subsidized Loans to Boost Agricultural Entrepreneurs
Jordan's Agricultural Credit Corporation (ACC) has launched a new program offering subsidized loans specifically targeting agricultural entrepreneurs, aiming to foster innovation and modernize the sector. The move was approved by the ACC board, chaired by Minister of Agriculture Eng. Khaled Hneifat, and signals a focused effort to support tech-driven farming ventures.
New Financing for Tech-Driven Agriculture
The core of the initiative involves offering loans with subsidized interest/Murabaha rates ranging between 2% and 2.25%. These loans are specifically designed for agricultural entrepreneurs associated with the agricultural innovation and entrepreneurship incubator located at the National Center for Agricultural Research (NARC). The primary goal is to finance "qualitative" agricultural projects that rely on and integrate modern technology.
Boosting Post-Harvest Capabilities
In the same meeting, the ACC board also approved granting loans to farmers and agricultural companies aimed at enhancing post-harvest logistics. This includes financing for essential infrastructure like packing, cooling, and packaging facilities. The objective is to improve the overall agricultural infrastructure, making the marketing and selling processes more efficient for Jordanian producers.
Broader Support via VTSDC Partnership
Complementing the new loan program, the ACC also signed a cooperation agreement with the Vocational and Technical Skills Development Commission (VTSDC). This partnership aims to support and finance small and medium agricultural and rural projects across all governorates of Jordan, aligning with the national Economic Modernization Vision. Key aspects of this agreement include:
Providing finance to establish new agricultural and rural projects.
Offering financial support to job seekers and entrepreneurs starting SMEs in these fields.
Encouraging innovation and the adoption of modern technology within the agricultural sector.
This collaboration seeks to reduce poverty and unemployment by fostering entrepreneurship in rural and agricultural areas.
Strategic Importance for Jordan
These decisions by the ACC underscore a strategic push to support agricultural investment and enhance the efficiency of this vital sector in Jordan. By promoting modern technology, improving logistics, and supporting SMEs and entrepreneurs (including job seekers), these programs contribute directly to goals of sustainable development, job creation, and strengthening national food security.
Looking Ahead
This new subsidized loan program, particularly its focus on technology and its link to the NARC incubator, offers a significant opportunity for innovative agricultural entrepreneurs in Jordan. Combined with the support for post-harvest logistics and the broader VTSDC partnership for SMEs, it represents a multi-faceted approach to modernizing the sector. Entrepreneurs within the NARC incubator should explore accessing these favorable financing terms to scale their tech-driven projects. The success of these initiatives will be crucial for enhancing Jordan's agricultural productivity and resilience.
Source: Hala News