Back to Funding Hub
Jordan

Jordan Rural Economic Development Programme

Funding Amount
€5.7 million total (€2.8M grants + €2.9M soft loans)

Program Overview

The Rural Economic Development Programme is a €5.7 million initiative jointly funded by the European Union and International Fund for Agricultural Development (IFAD) to stimulate economic growth in Jordan's rural governorates. The program provides €2.8 million in grants and €2.9 million in soft loans to support agricultural enterprises, agribusinesses, and economic activities that create employment and improve livelihoods in rural communities.

Funding Structure

The program offers two financing mechanisms: grants totaling €2.8 million for project preparation, capacity building, and co-financing business activities; and soft loans totaling €2.9 million providing accessible financing at favorable terms for productive investments. Projects can combine both grant and loan components to maximize impact. Funding supports agricultural production, agro-processing, value chain development, tourism, handicrafts, and service businesses in rural areas.

Eligibility Requirements

Eligible applicants include agricultural cooperatives, farmer groups, agribusinesses, small and medium enterprises, and community-based organizations operating in Jordan's rural governorates. Priority goes to projects creating jobs for youth and women, promoting sustainable agricultural practices, strengthening value chains, or developing rural tourism. Businesses must demonstrate technical feasibility, financial viability, environmental sustainability, and clear social impact on rural communities.

Application Process

Contact the Ministry of Agriculture or local Agricultural Credit Corporation offices for application guidelines. Submit business plans detailing project activities, financing requirements, expected outcomes, and community benefits. Applications are evaluated on economic viability, job creation potential, alignment with rural development priorities, and capacity for sustainable impact. Approved applicants receive technical support throughout project implementation alongside financial assistance.

Program Impact

The programme aims to create employment opportunities in rural areas where economic options are limited, stem rural-to-urban migration, and improve household incomes. By supporting value chain development and agribusiness growth, the initiative strengthens Jordan's agricultural sector competitiveness. Grant and soft loan combinations make investments accessible to smaller enterprises and cooperatives that lack access to commercial financing, fostering inclusive rural economic growth.

Common Questions

The Rural Economic Development Programme, co-funded by the EU and IFAD, supports projects in Jordan's rural communities including agricultural modernisation, agro-processing enterprises, rural tourism initiatives, and mid-market development. The programme provides grants, technical assistance, and training to help rural entrepreneurs and cooperatives improve their livelihoods and access new markets beyond their immediate communities.

Yes, the programme supports technology adoption in rural areas, including digital agricultural tools, e-commerce platforms for rural products, and ICT-enabled services. Projects that bridge the digital divide between urban and rural Jordan are encouraged. The programme recognises that technology can be a powerful enabler for rural economic development and supports training alongside technology investment.

The programme monitors household income uplift, agricultural yield improvements, employment generated in targeted governorates, and the percentage of women-led enterprises supported. IFAD supervision missions conduct biennial impact assessments comparing baseline surveys with endline measurements. Jordan's Ministry of Agriculture collaborates on data collection, ensuring alignment with national food security benchmarks and determining subsequent funding tranche disbursements.

The programme incorporates climate-smart techniques such as drip irrigation subsidies, drought-resistant crop dissemination, and solar-powered water pumping installations. Given Jordan's ranking among the world's most water-scarce nations, these interventions address structural constraints limiting rural productivity. Beneficiary cooperatives receive technical assistance on rainwater harvesting and soil conservation practices for long-term resilience.

The programme finances drip irrigation system installations, rainwater harvesting cistern construction, and treated wastewater reuse infrastructure enabling agricultural production continuity despite chronic freshwater deficit conditions. Precision agriculture sensor networks measuring soil moisture levels, evapotranspiration rates, and crop water stress indices optimize irrigation scheduling to minimize consumption while maintaining yield productivity. Greenhouse cultivation technologies enabling year-round vegetable production under controlled humidity environments reduce open-field evaporative water losses. Aquaponics systems combining tilapia fish cultivation with hydroponic vegetable growing demonstrate closed-loop water recycling methodologies achieving ninety percent consumption reduction compared to conventional farming practices.

The programme funds product design refinement workshops helping village cooperatives modernize traditional mosaic tile patterns, embroidery motifs, and olive wood carving techniques for contemporary interior decoration market preferences. Photography and digital catalogue production services create professional product presentation materials suitable for e-commerce marketplace listings and wholesale buyer catalogue distribution. Quality standardization training ensures dimensional consistency, color fastness certification, and packaging durability meeting international shipping requirements. Fair trade certification pursuit assistance covering documentation preparation, audit readiness assessments, and certification body fee subsidization strengthens premium market positioning for Jordanian handicraft cooperative products in European and North American specialty retail channels.

References

  1. Jordan: Rural development initiative delivers jobs, income growth for 16,000 beneficiaries. Zawya / IFAD (2025). View source
  2. JEDCO Programs. Jordan Enterprise Development Corporation (2025). View source
  3. Jordan Country Profile. IFAD (2025). View source
AI in Jordan

Explore AI consulting, training, and solutions in Jordan.

View Jordan hub

Ready to Explore AI Training in Jordan?

We help organizations navigate funding programs and deliver claimable AI training. Let us know what you are working on.

Start a Conversation