Palestine: EU and EIB announce €60 million business investment in Gaza
May 16, 2022
Access to finance by companies in Gaza will be enhanced by a €60 million support programme formally announced by European Investment Bank Vice President Gelsomina Vigliotti and European Union Representative Sven Kühn von Burgsdorff in Gaza. The new scheme designed to sustain employment and reinforce economic resilience was announced during a visit to Gaza by multiple European Union Ambassadors.
New investment by companies across Gaza will be supported by USD 50 million of new business financing, made available to local financial institutions by the Palestine Monetary Authority, under a broader EIB lending initiative covering the West Bank and Gaza.
This will be accompanied by EUR 8 million of portfolio guarantees and €5 million of incentive grants by the European Union, that will both enable more entrepreneurs and smaller companies in Gaza to access finance and strengthen lending activities by local financial institutions and to enhance business investment and financial capabilities of local businesses.
The financing will be channelled through Palestine’s flagship economic recovery programme called ‘Estidama’ by the Palestine Monetary Authority. The PMA has been instrumental in promoting sustainable economic development through this fund and with the current support of the EU and the EIB will substantially expand its activities in Gaza.