Palestinian Market Development Programme (PMDP)

Client: U.K. Department for International Development, European Commission

Duration: 2013-2019

Region: Middle East and North Africa

Country: Palestine

PMDP works to improve market systems and improve the competitiveness of the Palestinian private sector. We do so by improving private sector skills and innovation through technical assistance and matching grants; addressing market system failures in specific sectors through market analysis and facilitation; and strengthening trade and investment linkages with international markets in collaboration with key commercial representatives. DAI is mobilizing Palestinian diaspora to explore opportunities to transfer knowledge and improve linkages on trade and investment.

PMDP is a follow-on to the Facility for New Market Development project (2008–2012) implemented by DAI, which built a portfolio of 603 client-companies in the West Bank and Gaza from sectors including manufacturing, agribusiness, stone and marble, ICT, services, tourism, pharmaceuticals, media, and handicrafts. During the project, these client-companies increased their sales by $118 million and created more than 3,400 permanent jobs.

Sample Activities

Provide and manage matching grants to Palestinian businesses to assist them in innovating products/services.
Analyze and identify the root causes of underperformance and market failures.
Offer capacity support to the Palestinian Investment Promotion Agency (PIPA) to strengthen foreign and local investment.
Create linkages to mobilize potential diaspora investment, knowledge and technological transfer to the Palestinian private sector.

Select Results (through June 2017)

Open Matching Grants:

364 businesses assisted under open grants (98 are women-owned or -managed).
461 new products developed or enhanced (135 by women owned/managed businesses).
198 enterprises reported improved annual performance (46 by women owned/managed businesses).
£33 million increase of sales due to programme assistance.
833 jobs created (248 for women).

Gaza Back to Business/Market Window

264 businesses assisted.
136 new products developed or enhanced.
£55.7 million increase of sales due to programme assistance
1,617 jobs created (44 for women).

Egypt—National Bank of Egypt: MSME Lending Capacity Building

Loans to micro, small, and medium-sized enterprises (MSMEs) account for only 6 percent of the total loan portfolio of Egyptian banks, well below the 10 to 30 percent documented in the countries of the Organization for Economic Cooperation and Development. The Government of Egypt and Central Bank of Egypt have made access to finance for MSMEs a top priority and key area for banking sector reform.