Country: West Bank and Gaza
Duration: 2021-2022
Themes: Strengthening the Business Enabling Environment
Cross Cutting Themes: Gender, Digital
Anticipated Impact Areas: Quality Jobs, Private Investment, Productivity
The Challenge:
West Bank is Gaza is a fragile and conflict affected economy with restrictions on trade and movement of goods and people across borders adding to economic challenges. Asset light sectors such as ICT have high potential for success, yet several factors are constraining foreign investment to the sector. High transaction costs in identifying business partners and understanding the business environment provide disincentives for international investors to seek business opportunities. International firms are likely to be dissuaded to explore opportunities due to perceptions of locational risks. The government has prioritized the development of the ICT industry and is trying to attract investments in the sector.
The Mission
C-JET’s funding has been instrumental in garnering more economic opportunities for IT service firms in the West Bank and Gaza, including by improving market access for SMEs and increasing demand through promoting firm linkages as well as facilitating FDI (from regional and international investors) in the Palestinian IT ecosystem. To develop a value proposition for the IT services sector in WB&G, the team worked on an action plan for the Palestinian Investment Promotion Agency (PIPA) to achieve more effective service delivery. A document was delivered to PIPA, MTIT, PITA, and Palestine Trade Center (PalTrade) to serve as a basis for relevant investor or delegation presentations to support the design and implementation of a targeted investor outreach campaign to attract investments in the IT services sector.
As a result of these strategic interventions, an additional private investment of USD 1,48,6309 was generated by benefitting firms. Around 423 additional IT services Jobs were created. 31 individuals benefitted from customized and targeted project training activities, out of which 16 were female. Overall, the CJET grant catalyzed the implementation of improving market access and increasing demand and investments.