| Project Detail |
Switzerland contributes to foster the resilience of the private sector in the Gaza Strip. This UNDP implemented multi-donor intervention aims to enhance the competitiveness of small and medium-sized enterprises in sectors with potential to substitute low quality imports (food, garment, plastic, furniture) through investment support, upskilling of labor, and improved cooperation between business associations and local authorities. A more resilient private sector will generate jobs for youth and reduce the aid dependency in the Gaza Strip.Small and medium enterprises are the backbone of the Palestinian economy, comprising 98% of businesses. Due to the scarce resources of the public sector, Gaza’s private sector, especially SMEs, is the main potential source for employment, sustainable livelihoods, and resilience in Gaza. Private enterprises, however, face fundamental challenges due to the closure of the Strip since 2007, with strict import and export controls that affect the access of production inputs/raw materials for the industrial sector and access of goods for the retail/commercial sector. Limited access to technology and lack of investments are further restricted resulting in high production and operating costs and limited potential to expand production and conquer external markets. Yet, GS offers promising growth potentials as businesses are able and eager to invest if a market opportunity is presented, and a tech-savvy youth who can deploy technology for the modernization of business operations. Latest figures show an increase of industrial production and exports stimulated by the reduction of export restrictions from the IL side. In 2018, exports amounted for 2600 truckloads, in 2022 it reached 5770, an increase of around 122%. Out of which 41% to Israel, 58% to the West Bank, and only 1% was for international markets. Unemployment in Gaza is among the highest in the world - 46.6% was recorded in the first quarter of 2022, according to the Palestinian Central Bureau of Statistics. Overall, the young labour force is increasing by 4.5% per year, with most new entrants to the labour market – estimated at 42,000 annually – becoming rampantly unemployed.
Objectives Economic opportunity for Gaza Strip citizens improved through enhancing private sector resilience, upskilling of workforce, and improving the business enabling environment. |
