ESAF's Palestinian Investment Partners Program: Investing in Growth

  • Date Posted: July 22, 2011
  • Authors: Charmaine Seitz
  • Organizations/Projects: AED
  • Document Types: Case Study or Vignette, Other
  • Donor Type: U.S. Agency for International Development

Palestinians have an educated labor force, good communications links, a modern banking system, and a strong entrepreneurial tradition. Still, the market in the West Bank and Gaza Strip is not attracting its share of foreign direct investment.

The main problems lie in ongoing political uncertainty that makes investors wary, and obstacles to movement and access that prevent trade-in information and goods. The combination of these factors produces economic stagnation, despite obvious growth potential.

Palestinian Investment Partners (PIP), an initiative under the USAID-funded ESAF program, seeks to address these issues by opening doors for Palestinian businesses. PIP is a fixed capital financing mechanism designed to assist Palestinian small- and medium-sized enterprises (SMEs), primarily through the funding of new equipment and technology transfers, in order to accelerate their expansion, enhance economic activity in the West Bank, and create new employment opportunities.

Find out more about the businesses being served in this report from PIP.