Sharakat invests for impact in Palestinian SMEs to strengthen food self-sufficiency, enhance the technology offer, and accelerate human development through health and education
Sharakat seeks to strengthen food security and export promotion through sustainable agribusiness and innovative resource development. It accomplishes this task through a number of investments, from an animal feed plant to a seedless grape farm and an agriculture aggregation company. More details below.
IT and the digital economy are critical to Palestine’s success. Sharakat seeks to spur innovation in the technology sector through investments in venture capital funds, accelerators, and research hubs.
Innovation is needed broadly across the Palestinian education and healthcare industries. Sharakat seeks to transform these industries by investing throughout the healthcare industry – from hospitals to small providers – and education sector, such as a technology-focused school in Jenin.
Small and Medium-sized Enterprises are the backbone of the Palestinian economy. Sharakat supports this critical economic sector through investments in funds, banks, and aggregators that support small businesses and help them reach their potential.
The Pal-Farm for Milk Production is a spin-off of the Al-Jebrini Dairy company. Located in southern Hebron, it was established in 2014 with the primary mission of supplying Al-Jebrini Dairy Company with a constant and reliable source of fresh milk and other dairy products.
Pal-Farm is one of Palestine’s most modern farming facilities, capable of producing six million liters of fresh milk per year. As of October 2017, Pal-Farm had 1,139 cows. Of these, 462 were productive cows.
Sharakat is proud to be a key investor in Pal-Farm.
Sharakat is a 10% shareholder in the Ibtikar Fund, a $10 million disruptive fund that invests in innovative Palestinian startups at early stages.
Through its stake in Ibtikar, Sharakat seeks to strengthen Palestine’s technology offer while offering much-needed capital and financing to young entrepreneurs.
Ijara is Palestine’s first Islamic leasing facility, focused on providing machinery and other equipment for SMEs.
Established in 2013 by Sharakat and its partners, Ijara now has more than $10 million active assets in its portfolio.
The Dalyeh Seedless Grape Farm is a planned farm in Ein Al-Beida, near Tubas, in 'Area C.’
The grape farm meets growing demand for sweet grapes both locally and abroad. It will be a critical support hub for Palestinian farmers in the Jordan Valley.
The Animal Feed Plant is a planned Sharakat-led investment in a state-of-the-art animal feed plant in Hebron.
A $22.4 million investment, the plant will feature production capacity of 288,000 tons/year of animal feed, and four months of grain reserves. It will create 32 direct jobs, in addition to hundreds of indirect job opportunities.
The plant will reduce reliance on Israeli producers and meet anticipated market growth. Currently, about 90% of animal feed in southern Palestine is imported from Israel. The Animal Feed Plant will capture 12 percent of the market by 2020, and 40 percent of the market by 2029. This translates to 20% of the West Bank market by 2029, and reduces Israeli market share to 48%.
Animal feed industry is expected to grow to approx. $446 million by 2029, heightening the need for domestic sources.
The Agriculture Aggregation Company is a planned state-of-the-art grading and packing house with a strong collection and distribution network to serve both local and export markets.
The company will help connect farmers to the market, cutting multiple layers across the value chain, improving consumer perception and developing strong brand equity. Along the way, it will create 70 direct jobs over 10 years in addition to hundreds of indirect jobs.
This venture fills a sizeable gap in the Palestinian agriculture market. The local agriculture sector is fragmented, with a lack of connectivity across value chain and poor product quality, safety and traceability. Farmers tend to mitigate risk by minimizing inputs and growing several crop types, which lowers their seasonal yield. Further, farmers possess little marketing know-how, making it difficult to bring produce to market. The Agriculture Aggregation Company will mitigate these issues by streamlining activities while maintaining quality and fair price.
Sharakat is currently investing in a technology-focused school in Jenin. This K-12 school will be the first in Palestine to require students to learn software coding as a second language.
Sharakat is investing in an integrated potato chips plant. More information forthcoming.