USAID’s private sector programs advance productivity and create an environment that attracts investment and allows Palestinian businesses to access domestic, regional, and international markets. Technical assistance and grants, market access initiatives, and other support help Palestinian businesses recover from the effects of the COVID-19 pandemic. 

USAID is currently doing this through the following activities:

Basic Infrastructure Support Mechanism

$58 million • Implemented by Arab Brothers • 2023-2028

The Basic Infrastructure Support Mechanism (BISM) addresses the small and medium infrastructure needs of USAID-funded programs in health, democracy and governance, education, youth, water and wastewater, energy, and economic growth sectors. BISM ensures infrastructure improvements are implemented in accordance with best engineering practices.

Small and Medium Enterprise Assistance for Recovery and Transition (SMART)

$40 million • Implemented by DAI Global, LLC • 2021-2025

The Small and Medium Enterprise Assistance for Recovery and Transition (SMART) activity aims to sustainably revitalize Palestinian small and medium enterprises (SMEs) and startups that have the potential to grow. Assistance supports SMEs through a package of grants, technical assistance, and increased access to finance. Furthermore, SMART works with local private sector institutions to improve the business enabling environment. The revitalization activities integrate women’s empowerment and climate change adaptation to ensure long-term sustainability through efficient energy solutions, wastewater management, and solid waste minimization and reuse.

Digital Financial Services Pilot Activity (Buy-in)

$1 million • Implemented by Palladium International, LLC. • 2022-2024

The Digital Financial Services Pilot Activity is designed to stimulate a dynamic and competitive digital financial services market in the West Bank and Gaza.  The interventions under this Activity will coalesce around two core objectives: (1) building partnerships to facilitate digital payment services for small and medium enterprises (SMEs); and (2) enhancing financial literacy and digital financial services adoption by SMEs and underserved populations, including women, youth, the unbanked, and the underbanked. 

The Activity will be implemented via a buy-in to the Bureau for Development, Democracy, and Innovation managed Global Development Alliance called Alliance for E-Trade Development II (E-Trade Alliance). The E-Trade Alliance is a Cooperative Agreement awarded to Palladium International, LLC.

Report - West Bank and Gaza's Enabling Environment for Doing Business in the Digital Economy


Note: These represent current awards administered by USAID/West Bank and Gaza. The dollar amounts are the technical estimated costs of the award over the full period of performance and outyear funding is subject to availability of funding.

Economic Growth