46 small and medium-sized Palestinian agribusinesses receive sustainable investment grants

RAMALLAH, The Food and Agriculture Organization of the United Nations (FAO), government officials, and donor representatives have gathered today to kick off investment support to 46 small and medium-sized Palestinian agribusinesses over the next year. 

The grants will mobilize around USD 4.9 million in small agribusinesses and cooperatives from across the West Bank. Other agribusinesses have been preselected for support, pending the allocation and availability of additional funding. 

“Promoting private investment in sustainable farming, processing, and marketing is essential to promoting food security and creating green jobs and growth,” said Ciro Fiorillo, Head of Office, FAO West Bank and Gaza Strip, during his opening remarks.

The 46 grants under this initiative were signed in the presence of H.E. Prime Minister Dr. Mohammad Mostafa, H.E. Minister of Agriculture Rizq Salimieh and representatives from the initiative’s resource partners: Denmark, the European Union, Italy, Spain and Switzerland.  

“The impacts of our investments extend beyond the companies here today to local governments, dozens of farmers’ cooperatives, and an increasing number of individual farmers and small and midsize agribusinesses. We are proud to partner with local businesses through these investments, which build more resilient livelihoods, welfare and economic growth for literally thousands of Palestinians,” said Sigurd Halling, Representative and Head of Mission, Danish Representative Office. 

FAO’s investments are funded through two programmes that promote resilience of the West Bank’s agrifood sector. “Promoting market-oriented investments and innovations for sustainable agrifood system development”, known as the Multidonor Agribusiness Programme – Phase II (MAP II), is funded by Denmark, the European Union, Spain and Switzerland. “Enhancing market-driven innovative and sustainable investments in the agrifood sector in the West Bank” is funded by Italy. 

The projects provide cost-shared grants to small-to-medium-sized businesses, sharing the risk posed by large-scale investments amid the current emergency context. MAP II covers an average of about half the cost of each investment, while the other half is covered by the agribusinesses. Additional support is provided to women- and youth-led agribusinesses. 

In addition to investment support, the two programmes also invest in infrastructure and operational upgrades to the wholesale central markets in Bethlehem, Nablus and Tulkarm to improve their services to the traders while maintaining the highest sustainability and hygiene standards; policy reforms to promote economic growth; and environmentally sustainable innovations in the agrifood sector. 

The initiatives under the two ongoing programmes are built on the success of Phase I of the MAP programme (2019–2023), which was funded by Denmark, the European Union, the Netherlands, Spain and Switzerland. Investments made under MAP I significantly increased the net income of approximately 300 small and medium-scale agribusinesses in the West Bank and Gaza Strip, created some 1 250 jobs–one-third for women–and led to the widespread adoption of “green” practices and sustainable resource management.