(PROPARCO) - Thanks to a USD 10 million loan granted to Nakheel Palestine for Agricultural Investment (“Nakheel Palestine”), the No. 1 Palestinian producer of Medjoul dates, Proparco has made its first investment in Palestine. Nakheel Palestine, with the support of Proparco, will create around 350 seasonal jobs and generate more than USD 100 million in foreign exchange earnings for the Palestinian economy. The proceeds from this loan will be used to acquire an existing farm, bringing the number of trees that Nakheel Palestine farms in Jericho to 45,000. The loan will also be used to boost Nakheel Palestine’s Agro industrial infrastructure, particularly by expanding its refrigeration and cropping capacities.

A pioneering investment

This loan marks Proparco’s first operation in Palestine and is also one of the first loans (outside of the banking sector) granted by a development finance institution to the Palestinian private sector. This transaction is also the starting point of Proparco’s collaboration with Padico Holding, Nakheel Palestine’s main shareholder and Siraj Palestine Fund I, a subsidiary of Massar International. Padico is a major player of the Palestinian economy and has invested in around 50 Palestinian businesses operating in a wide range of sectors (Agribusiness, Energy, Telecom, Tourism and Real Estate). This agreement sends out a strong positive signal, demonstrating the bankability of the Palestinian private sector which is currently suffering from a lack of long-term financing.

Major economic and social impact

Nearly 350 direct seasonal jobs will be created by this investment in the agribusiness sector which currently employs 12% of the Palestinian population. The growth in exports will also boost the brand’s global visibility and generate more than USD 100 million in foreign exchange earnings for the Palestinian economy.

A global approach

This loan is part of Agence Française de Développement’s (“AFD”) investment programme in Palestine. AFD is also partnering with the City of Jericho on a project to increase the supply of irrigation water to local agribusinesses, the available water being very limited in the area.

About Proparco

Proparco is a subsidiary of Agence Française de Développement (AFD) focused on private sector development. It has been promoting sustainable economic, social and environmental development practices for almost 40 years. Proparco provides funding and support to both businesses and financial institutions across Africa, Asia, Latin America and the Middle-East. It seeks to partner projects in key development sectors – infrastructure (with a specific focus on renewable energies), agribusiness, financial institutions, healthcare and education, etc. – and to boost the contribution of the private sector to achieving the sustainable development goals adopted by the international community in 2015. As a means to this end, Proparco finances businesses that are instrumental in creating decent jobs that pay decent wages, in supplying essential goods and services and in battling climate change. For more information, go to: www.proparco.fr