The Palestinian Investment Fund announces the outcomes of its Ibda’a Program for Young Entrepreneurs since its launch in 2016 until the end of June 2020. Ibda’a Program provides production-oriented soft loans through Micro Finance Institutions (MFIs) and financial leasing companies operating in Palestine, to facilitate the establishment of new projects for youth and create self-employment, or contribute towards the further development of existing productive projects. The program was launched through a loan of $30 million dollars from the Arab Fund for Economic and Social Development in cooperation with local financing and lending institutions.

Ibda’a Program provided funding to more than 2000 small enterprises throughout the different governorates for a total amount of $19 million dollars. The loans were used to implement development plans for these enterprises to increase their production and create additional job opportunities. Furthermore, the loans helped launch and establish more than 550 new startups. Youth constituted a majority of beneficiaries of these loans with an estimated 91% of the total loans. Women received approximately 37% of the loans.

PIF Chairman of the Board of Directors Dr. Mohammad Mustafa said : “ despite the conditions affecting our national economy, yet PIF continues its efforts, in cooperation with different partners, to mitigate the impact of the crisis. PIF works alongside the various stakeholders to contribute towards recovery under the various economic sectors, and a resumption of usual business operations.”

Dr. Mustafa added : “ PIF is proud to have launched Ibda’a program which benefited a large segment of small business owners. Despite the small size of these enterprises, yet they constitute, as a sector, to more than 90% of our national economy. Indeed, the program pumped an approximate additional amount of $13.3 million dollars into the economy through the borrowers themselves or the partner lending institutions, as they developed their businesses, increased their productivity, and employed additional workers.”

In his turn, Mr. Jamal HaddadDirector General of Palestine for Development Foundation that is affiliated with PIF and is the implementer of the program, said: “the program was not limited to a specific area or sector. One of the main advantages of the program is this inclusive and comprehensive nature in terms of geographic coverage of all governorates including Jerusalem and Gaza Strip. It also targets all economic sectors such as trade, agriculture, industry, crafts, ICT, services, tourism, and others.”

Haddad added: “ Ibda’a program focused on providing new jobs and preserving existing one. It contributed towards the provision and maintaining of more than 4,200 job opportunities under the various sectors. It helped increase the productivity of benefitting projects, opening new prospects for them.”

Ibda’a Program, success stories

Al Ikhlas Company for Air Condition and Tin Works at Al Jalazon camp in Ramallah is one of the beneficiaries of Ibda’a program through a loan from Faten (Palestine for Credit and Development) institution. The owner, Mr. Usama Shanti said: “ I received several loans from Faten Institution to buy a vehicle for the company and industrial equipment. This empowered the company to venture into new industrial fields related to air-conditioning such as tin works, and to take part in new tenders and projects that increased our revenues, the expertise of workers, and productivity rates.”

Ms. Tahreer Yaseen, owner of Ruwwad Al Mustaqbal kindergarten, benefitted from Ibda’a Program through a loan from Vitas to upgrade the kindergarten and provide it with additional equipment. Ms. Yaseen said: “ the kindergarten targets children from the age of 3-5 years, focusing on pre-school education, and helping children gain basic skills such as reading and writing. I received a loan from Vitas to buy new furniture and toys for the children. This improved the kindergarten’s environment. I advice every Palestinian woman who believes she is capable to start her own project and implement it. The idea for my project came from a conviction that Palestinian women have a significant role in the society and are capable to realize their potentials just like any human being with an ambition to improve his/her livelihood and that of their family.”

Mr. Mir’ee Nassar from Qaliqlya is an owner of a chicken farm who benefitted from Ibda’a Program. Mr. Nassar said: “ I started with a small number of chicken, only 45 chicken. The idea started to evolve and the number increased to 1000. After developing the project, I received a loan from Vitas to increase the number to 2000 chicken. The loan allowed me to buy new and modern equipment and instruments to establish a project that accommodates 2000 chicken, thus increasing production rates, pushing my project forward, increasing revenues, and reaching new markets.”

Ibda’a Program is implemented in cooperation with local lending and financing institutions, namely: Palestine for Credit and Development (FATEN), Asala for Development and Lending, ACCAD for Financing and Development, PalLease financial leasing, Reef Finance, Palestinian Leasing Company, the Palestinian Banking Institute, Ibdaa for Microfinance, and Vitas-Palestine for Lending.