São Paulo – The International Finance Corporation (IFC), a branch of the World Bank, signed an agreement with the Bank of Palestine to support the economic development of small businesses in the country, particularly those commanded by women. The announcement was made by the IFC this Wednesday (08).
According to the communiqué, the IFC shall help the Bank of Palestine increase their banking transactions for small and medium companies in the West Bank and the Gaza Strip. According to the organization, the Palestinian private sector, mainly represented by family businesses, account for 90% of the country’s jobs, but only 5% of these businesses have access to bank loans.
“Our long-term partnership with the IFC has helped us strengthen our banking transactions and minimize potential risks,” stated, in the announcement, Hashim Shawa, president and general manager of the Bank of Palestine. “We are focusing in supporting businesswomen and helping integrate women in the economy, while encouraging the rapid growth of the small and medium businesses sector,” added Shawa.
The project is the IFC’s third consulting intervention in the West Bank and Gaza Strip with the purpose of helping access to financial resources, promoting business sustainability and supporting businesswomen.
“Although women own almost one quarter of all businesses in the West Bank and Gaza Strip, only a few have access to financial resources from banks,” stated, also in the announcement, Luke Haggarty, Head of the IFC Consulting Services in the Middle East and North Africa. “A vibrant private sector which includes more businesses headed by women may offer employment opportunities that are very much needed, attract investors and direct economic growth,” he said.
The Bank of Palestine has more than 300,000 clients and accounts for almost 25% of the banking market in the country. In 2010, the IFC acquired 5% of the bank. The IFC is the greatest global development institution focused exclusively in the private sector.
*Translated by Silvia Lindsey