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01/12/2020 – 19:07
To support the roll-out of the EU External Investment Plan in Palestine a dedicated platform was launched, which will help foster policy dialogue with the PA, European Financial Institutions and other local and international stakeholders on how to better attract investment into Palestine. The platform will work to help identify, prioritise, coordinate and promote investment opportunities that the EU External Investment Plan offers through its instruments. This coordination mechanism will serve to discuss policy priorities and investment pipelines in order ensure alignment of publicly sponsored investments with political, policy and reform priorities of Palestine.
Mobilisation of the EU External Investment Plan in Palestine started in July 2018. To date, 6 blended finance and guarantee operations funded by the EU have already been launched and some further 10 are currently under preparation. Amid the Covid-19 crisis, the EU as part of the Team Europe initiative stepped-up its assistance to the Palestinian private sector. The EU has mobilised a large package of financing amounting to EUR 85 million in EU funds, which is expected to mobilise over EUR 400 million in soft loans and investment for the Palestinian private sector.
Today, the EU Representative along with the Prime Minister and four main European Financial Institutions active in Palestine, including European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), KfW Development Bank and AFD French Development Agency & PROPARCO marked the first meeting of the EU-Palestine Investment Platform.
“With the launching of the EU-Palestine Investment Platform, we want to make Palestine a more attractive place for local, European and other international investors. This initiative will contribute to unlock much needed investment and is very much inspired by our common objective of creating a prosperous, independent and economically viable Palestine”, said the European Union Representative Sven Kühn von Burgsdorff.
The EU’s ambitious External Investment Plan (EIP) has been set up to encourage investment in its partner countries. It is promoting inclusive growth, job creation and sustainable development. The EIP is crowding in private investors, where viable business proposals meet social needs, and where limited public funds can attract private money.
Amid the COVID-19 crisis, the EU as part of the Team Europe has announced a large economic assistance package to help Palestinian businesses recover from the economic down-turn. The overall package amounts to around EUR 85 million of EU funds, which is expected to mobilise over EUR 400 million in soft loans and investment for the Palestinian private sector. The bulk of this assistance is to be channelled to the Palestinian economy through European Financial Institutions and reach the private sector through local banks and micro-finance institutions. The economic assistance package will be delivered in form of four main instruments, including loan guarantees for benefit of local financial institutions, liquidity injection with credit lines by European Financial Institutions, risk capital in equity investment vehicles and incentive grants to subsidise businesses directly.