West Bank and Gaza, July 26, 2007 —
IFC, the private sector arm of the World Bank Group, today launched a microfinance
market study of the West Bank and Gaza to highlight the market characteristics
and critical issues that need to be addressed to promote a vibrant microfinance
sector. These include outreach to clients, product development, and establishing
regulations. The study will help address gaps and find ways to advance
microlending.
The study was funded by IFC Advisory Services in the Middle East and North
Africa – PEP-MENA – and the Palestinian Network for Small and Microfinance,
and was conducted by Planet Finance. It estimates demand for microlending
in the West Bank and Gaza at 190,000 clients, with a market size of $157
million.
The study reveals that about 90 percent of microentrepreneurs, who are
mostly active in trade and services, lack access to financial services.
Most of the loans requested by microentrepreneurs are less than $2,500;
and these are needed to expand businesses, start new activities, and finance
assets and working capital. The study also identifies the need for noncredit
products such as insurance, money transfer services, and pension funds.
IFC Country Officer Youssef El Habasch said, “This study demonstrates
our ongoing effort to support the microfinance sector in the Middle East
and North Africa. The sector serves the poorest segments of society by
providing crucial access to financial resources.”
IFC has been active in microfinance development worldwide over the last
decade and has committed $500 million to microfinance institutions. As
of 2006, these activities have made a difference in the lives of about
3.5 million entrepreneurs.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
capital in the international financial markets, and providing advisory
services to businesses and governments. IFC’s vision is that poor people
have the opportunity to escape poverty and improve their lives. In FY06,
IFC committed $8.3 billion, including syndications, to 284 investments
in 66 developing countries. For more information, please visit www.ifc.org.
About IFC PEP-MENA
IFC PEP-MENA is a multidonor facility for advisory services that support
private sector development across the Middle East and North Africa. It
focuses on improving the business-enabling environment, strengthening financial
markets, supporting SME development, and promoting privatization and public-private
partnerships. From its inception through FY06, IFC PEP-MENA has committed
more than $20 million in advisory projects. Its activities are funded jointly
by IFC and the following donors: Canada, France, the Islamic Development
Bank, Japan, Kuwait, the Netherlands, the United Kingdom, and the United
States.