IFC project seeks to reduce regulatory constraints, simplify licensing and inspection procedures - Jordan  

AMMAN — The International Finance Corporation (IFC) will undertake a project here to reduce regulatory constraints and simplify licensing and inspection procedures for businesses.

An agreement to this effect was signed Monday by the government and the IFC, the private sector arm of the World Bank Group.

Led by PEP-MENA, IFC's private enterprise partnership facility in the Middle East and North Africa, the "project" will conduct a comprehensive review in order to streamline current inspection procedures at selected ministries.

Michael Essex, IFC's regional director for Middle East and North Africa, said: "With this technical assistance, PEP-MENA aims to help streamline governmental inspection processes, thus stimulating private sector growth and creating a healthy environment for investment in the country."

Industry and Trade Minister Sharif Zu'bi indicated that the government has launched several initiatives to foster the growth of the private sector and strengthen the business enabling environment."

According to Zu'bi, the Ministry of Industry and Trade (MoIT) facilitated last year the start-up company registration process and streamlined procedures. The MoIT also set up the "Committee on Awareness, Advisory and Supervision for Industrial Sector" to address the burden of inspection on business operations.

"PEP-MENA's project will complement these ongoing reform efforts," he remarked.

The major objective of this project, according to the agreement, is to reduce the cost and time of complying with regulations for private firms and create a transparent inspection system.

The project will include a review of the legal framework and the maintenance of a risk-based management system, Essex indicated. "By actively involving the private sector and all stakeholders in the process, the programme hopes to increase public awareness about the reform efforts, thereby maximising its potential for success," he said.

Labour Minister Bassem Salem said the project will also include a component on corporate social responsibility in the Qualifying Industrial Zones.

"The project would aim also to design a market-based incentive system to increase compliance with international labour principles and local labour law in the garment sector," he added. According to the agreement, this particular component will be jointly managed by PEP-MENA and IFC's Foreign Investment Advisory Services.

The IFC has 178 members' countries, and its mission is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people's lives.

It finances private sector investments in the developing world, mobilises capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.

From its founding in 1956 through 2005, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndication for 3,319 companies in 140 developing countries. IFC's worldwide committed portfolio as of 2005 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndication.

Zu'bi and Salem signed the agreement on behalf of the government and Essex represented the IFC side in the signing ceremony.