Context
Political instability in the Palestinian territories is severely affecting economic development. On the one hand, the risk of conflict discourages investment and lending. On the other hand, there is no free movement of people and goods in the Gaza Strip and the West Bank. What is more, trading is not sufficiently regulated. Companies are losing out on business, which drives up unemployment and poverty rates.
The Palestinian private sector, 90 per cent of which consists of small and medium-sized enterprises (SMEs), has proven to be fairly robust, especially when it comes to meeting local demand in areas such as construction, agriculture, trade and services. Export businesses, on the other hand, are rarely competitive.
Objective
Palestinian SMEs benefit from improved and sustainable trading conditions, while new income and employment opportunities have been created and current sources of income are secure in the medium term.
Approach
The project addresses the complex problems confronting SMEs and ties in with the development plans of the Palestinian Authority.
To this end, the project focuses on two key areas:
1. Conditions for SMEs are improved by supporting the Ministry of Economic Affairs in implementing its action plan for market regulation, market monitoring and consumer protection.
2. Competitiveness of micro-enterprises and SMEs is boosted through product and service development and quality management. In addition, companies are receiving support in tapping into new markets.
The project is co-financed by the European Union (EU) and implements a component focusing on green economic growth. In this way, the project helps companies in selected industries to introduce green consumption and production methods. It also builds capacities among financial service providers and improves access to green investment opportunities.