USAID LENS Quarterly Progress Report – October-December 2015

The project kicked off its third year with several new grants solicitation mechanisms to have a more targeted approach to the grants program and greater integration with value chain activities. These mechanisms include a new Business Development Service Provider (BSP) Annual Program Statement (APS) with a ceiling of JD 175,000, a new Micro and Small Enterprises (MSE) APS that must be linked to LENS sectors with a ceiling of JD 100,000, a Request for Application (RFA) in support of tourism circuit development in the areas of Azraq and Irbid, and an APS in support of policy reform. The project also published several Requests for Proposal (RFPs) and other solicitations to procure technical assistance in LENS targeted sectors and cross-cutting areas. These include the LENS Consultancy for Grantees Training Support to provide training, mentoring, capacity building, and support services for MSE grantees, an Auto Market Segmentation Study to build understanding of the sector for future interventions, Technical Development of Mobile Banking Services for National Microfinance Bank, and a Local Restaurant Capacity Upgrade to provide a range of technical assistance and capacity building services to local restaurants in Naour. The project also proposed a major regulatory initiative to the Ministry of Municipal Affairs concerning home-based businesses (HBBs). The initiative proposed to expand regulation of home-based businesses in Amman to Zarqa, as a pilot for a nation-wide roll-out. The successful expansion of the regulation has the potential to benefit hundreds of businesses. In addition, the project worked with the Jordan Food and Drug Administration (JFDA) to develop a pre-approval process to allow LENS to proceed with grants to food processing businesses. The MSE Strengthening component of the project focuses on supporting the growth of MSEs in key sectors, including food processing, tourism, and transport. The Access to Finance Strengthening component aims to improve access to finance for MSEs, while the Local Economic Development Strengthening component focuses on building the capacity of local development units and strengthening the enabling environment for MSEs. The project also conducted several research and learning activities, including an MSE Survey and Municipal Resource Mapping (MRM). The project encountered several challenges, including difficulties in accessing finance for MSEs and limited capacity of local development units. To address these challenges, the project proposed several remedial actions, including providing technical assistance to MSEs and strengthening the capacity of local development units. The project's next quarter activities include continuing to support MSEs in key sectors, improving access to finance, and strengthening the enabling environment for MSEs. The project also plans to conduct several research and learning activities, including a Value Chain Analysis. The project's budget for the next quarter includes funding for several activities, including grants implementation and technical assistance. The project has several success stories and communications highlights, including the successful expansion of regulation of home-based businesses in Amman and the development of a pre-approval process for food processing businesses. The project also organized several events, including the USAID LENS Event Highlights, which brought together stakeholders to discuss the project's progress and future plans.