Facilitating enhanced access to inclusive responsible financing for micro, small and medium-sized enterprises

Context

Long-term resilient development in the Palestinian territories is a challenge. Problems such as water scarcity, increasing temperatures and export restrictions have a detrimental effect on agriculture and economic resilience. In addition to this, high energy costs are a significant burden for households and businesses. Companies therefore have to increasingly invest in adapted business models and resource-conserving technologies.

The Palestinian regulatory framework offers initial incentives for financial service providers to develop inclusive and digital products for micro, small and medium-sized enterprises (MSMEs) such as comparison platforms for financial products. Those products aim to improve access to financial services, lower costs, and make it easier for individuals and companies to invest and to financially secure themselves.

However, the financial sector does not yet take sufficient account of the special characteristics of MSMEs and there is a lack of incentives to develop financing for their specific needs.

Objective

Access to inclusive financial services and financing for future-ready investments for MSMEs has improved.

Approach

The project strives to improve the regulatory conditions for inclusive financial services and financing of long-term resilient investments. To this end, it provides financial authorities with advice on their role in promoting and regulating financing.

At the same time, representatives from financial institutions and MSMEs are supported in expanding the offer of and demand for inclusive and resource-conserving financial services in the Palestinian territories. The project also works with banks, microfinance institutions and financial technology firms to adapt their products. Training is also provided to MSMEs aimed at enhancing their understanding of financial services.

Last update: Februar 2025