Promoting the private sector in the Palestinian territories

Programme description

Title: Private Sector Promotion Programme
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Co-financed by: European Union
Country: Palestinian territories
Lead executing agency: Ministry of National Economy
Overall term: 2018 to 2024

Context

Crises and conflicts in the Palestinian territories are weakening numerous enterprises and thus increasing unemployment and poverty.

Political instability in the country is severely impairing the opportunities for economic development. For one thing, the risk of a conflict impedes investment and lending. For another, the mobility of people and goods is highly restricted in the Gaza Strip and the West Bank. In addition, the regulatory framework conditions are inadequate.

The Palestinian private sector, more than 90 per cent of which consists of small and medium-sized enterprises (SMEs), has proven to be fairly robust, especially when meeting local needs for construction, agriculture, trade and services. However, export-oriented businesses are competitive in only a few individual cases.

Objective

Improved framework conditions permanently strengthen Palestinian SMEs. New income and employment opportunities have been created and existing ones secured for the medium term.

Approach

The programme takes account of the complex problems facing SMEs at both national and local level. It operates in accordance with the Palestinian Authority’s own development plans and supports the self-help potential and competitiveness of the private sector, particularly in terms of their lobbying and dialogue skills. Against this backdrop, the project works in two priority areas.

Firstly, it contributes to improving the enabling environment by supporting the Ministry of National Economy in implementing its plan of action for market regulation, market surveillance and consumer protection.

Secondly, the project promotes the competitiveness of micro enterprises, SMEs and in the following sectors of the economy: information and communications technology (ICT), food processing (Gaza and the West Bank), fair trade, tourism (the West Bank) and the textile industry.

The project is cofinanced by the European Union (EU).

Last update: November 2021