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bank of palestine proparco support entrepreneurship startup hub technical assistance
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Bank of Palestine (BoP) remains resilient in pursuing its development mission by providing support and meeting the needs of Palestinian entrepreneurs and start-ups. In addition to catering to the needs of the innovative eco system, the bank is supporting the digital transformation in the local economy and particularly SMEs. To this effect and in support of Palestine's leading bank in its development efforts towards these two segments, Proparco and FISEA+ have granted two technical assistance subsidies totaling €1,340,000 to the bank. These funds will enable BoP to carry out its mission of supporting a resilient entrepreneurial ecosystem, one by backing the activities of its Intersect incubator for local start-ups, the other by improving access for Palestinian SMEs to the digital tools that are essential for their business.

As the Palestinian economy suffers the consequences of the war in Gaza and heightened tensions in the Middle East, the two grants from Proparco and FISEA will enable Bank of Palestine to continue to support very small and medium-sized enterprises (VSEs), which form the backbone of the Palestinian economy in addition to youth entrepreneurs.

Bank of Palestine (BoP) is the leading banking group in Palestine, and is committed to achieving impact aligned with the Sustainable Development Goals, from renewable energy to gender inclusive projects.

The two grants to be deployed by BoP address concrete challenges faced by local entrepreneurs:

  • Through a €1 million grant from FISEA+, BoP is backing the Intersect Innovation Hub (IIH), a start-up incubator launched in 2020, to develop and strengthen the Palestinian entrepreneurial ecosystem. IIH aims to support entrepreneurs and around 90 technology start-ups a year, providing them with access to resources, an incubation programme, mentoring and networking opportunities.
  • A 340,000 grant will enable BoP to provide its SME customers (more than 2,000) with free digital solutions (e-banking) that are essential to their business (payments, online transactions such as transfers, employee payrolls, utility bill payments, etc.), thereby helping to maintain economic activity in a difficult context.

Bank of Palestine's partnership with AFD Group, including Proparco, extends over a 12-year period and includes several initiatives. This strategic relationship between BoP and AFD marks a major cooperation in favour of economic development and the improvement of financial services in Palestine.

Françoise Lombard, CEO of Proparco, said: “In many ways, the resilience of the Palestinian economy can be attributed to the dedication of key institutions like the Bank of Palestine, which has consistently chosen to support local entrepreneurs. Today, Proparco is renewing its commitment to BoP, and I am confident that these two technical assistance grants will make a tangible and positive impact on the Palestinian entrepreneurial ecosystem.”

HE Nicolas Kassianides, Consul general of France in Jerusalem, said: “While the Palestinian Territories are facing their most difficult economic and financial crisis in the past decades, we remain fully committed to support both the Palestinian Authority and the Palestinian private sector. By investing in startups and enhancing financial tools in partnership with Bank of Palestine, we wish to contribute first to economic resilience but also to provide real growth and employment perspectives for the Palestinian private sector, in particular the young entrepreneurs. More than ever, France remains committed to help build a viable Palestinian State living side by side and in peace with Israel.”

Hashim Shawa, Chairman of the Bank of Palestine, said: “Today we enter another concrete partnership with the French Development Finance Institution, Proparco in support of the real economy through two initiatives. First one is providing additional digitization to the SME sector and encouraging the prevalence of digital transactions in the local economy. The second one is through supporting the Intersect Innovation Hub to scale up geographically and in programs. These are important interventions coming at a critical time and touching the lives of youth and consumers while improving the digital and innovative entrepreneurial economic landscape in Palestine.”