economic development

Italy is driving transformation in Palestine with a significant commitment to economic development, allocating about a third of available funds to this crucial sector. With an investment of over 35 million euros, our initiatives focus on three key areas: Private Sector Development, Employment, and the Energy Sector. We work directly with Palestinian authorities and international partners to stimulate growth and tackle high unemployment, which could reach up to 57% in the early months of 2024.

Our seven major programs, with a total budget of 74.6 million euros, are making a real impact. Here’s how:

Credit Assistance:

• START UP Palestine: We’ve created 620 new jobs and issued 529 new loans and 12 grants. Since the program’s launch, over 5,900 jobs and 4,081 loans have been generated.
• Palestinian SME Development: With a 146% turnover rate, we’ve provided 327 loans totaling 36.7 million euros, supporting small and medium-sized enterprises in their growth journey.
• Electricity Utilities Management (EUMP): We’re implementing an electricity distribution system in the West Bank, having completed about 80% of the first phase, with completion expected by mid-2024.

Bilateral Cooperation:

• Financial Inclusion in Palestine (Fin-Pal): We’ve carried out informative campaigns and advanced training in leasing, Islamic finance, and microfinance, promoting greater financial inclusion.
• Improvement of the Business Environment (EPEC): We support SMEs with consulting services, feasibility studies, and energy system installations, working closely with the Palestinian Energy and Natural Resources Authority.
• AYADI: Launched in February 2023, this program aims to ease youth access to the job market. Despite interruptions due to the Gaza conflict, we’ve completed needs assessments and beneficiary mapping in the West Bank and Gaza.

Multilateral Cooperation:

• Be The Impact: In partnership with the ILO and the Palestinian Cooperative Labor Agency, we’re revolutionizing the cooperative sector and social entrepreneurship. We’ve completed the Cooperative Sector Strategy (2024-2029), trained 149 cooperatives, and established the Al-Manshiyeh Women’s Cooperative. We’re also creating the Cooperative Development Institute and Fund and launching new projects to enhance cooperative skills and performance in 2024.

Through these efforts, Italy is contributing to a prosperous and sustainable future for Palestine, driving economic growth and creating job opportunities for all.