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Proparco and Vitas Palestine are supporting Palestinian individuals and microentrepreneurs
Project
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Signature date
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Location
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Palestine
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Financing tool
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Financing amount (Euro)
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4240522
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Financing details
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USD 5m loan
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Customer
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VITAS PALESTINE
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Type of customer
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Microfinance
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Country of headquarters
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Palestine
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Project number
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PPS1007
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
The credit line allocated by Proparco will allow the microfinance institution to increase its support to the Palestinian private sector. It will also contribute to financial inclusion, which remains low in the Palestinian Territories. Over 3,500 of the microfinance institution’s clients should benefit from a microcredit through PROPARCO’s financing, with at least 20% being women. A total of some 800 jobs should be directly or indirectly supported over the next five years.
Client presentation
Vitas Palestine (formerly called Ryada) started in 1994 as a cooperation project between USAID and Global Communities (formerly CHF International) in the Gaza Strip.
Vitas Palestine has since developed to serve companies and owners with low or moderate incomes that are unable to access standard credit resources. Vitas Palestine has considerably extended its branches, client base, range of products and gross loan portfolio. It has now become the second largest microfinance institution in Palestine in terms of clients and the size of its loan portfolio and operates in both the West Bank and Gaza Strip.
Project description
It is Proparco’s first operation with Vitas Palestine, a player recognized in the microfinance sector for its efforts to evaluate social performance.
This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy.
This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).
Project impact
The main expected impacts of this financing are as follows:
- An improvement in access to microcredits: over the next five years, over 1,000 clients should benefit from a microcredit. Women currently account for 20% of borrowers, a proportion that Vitas wants to increase to 25% by 2022.
- Support for some 800 jobs over the next five years, including some 20 direct jobs at Vitas Palestine.
- A contribution to women’s leadership (women make up 25% of the management team) and quality jobs for women (women account for 44% of employment at Vitas and HR measures are implemented that go beyond local regulations). For these reasons, the operation is eligible for the 2X Challenge.