MICROCAPITAL BRIEF: World Bank Donating $13m to Support Angel Investors, Networking for Startups in Gaza, West Bank

The US-based World Bank recently announced it will disburse grant funds totaling USD 13 million over seven years to launch the “Innovative Private Sector Development Project,” which is designed to improve networking and financing opportunities for firms operating in the Palestinian Territories. The majority of the funding is to pay for technical support to investors looking to fund startups in Palestine, including: (1) training sessions for angel investors; and (2) a “new automated company registration system” for tracking potential investees. Approximately USD 3 million of the grant funds is for establishing an information and communications technology (ICT) service hub to serve startups and other local firms. GGateway, a nonprofit ICT provider in Gaza, will create the hub.

GGateway was established in 2012 in Palestine as a project of the UN for Relief and Works Agency (UNRWA) with funding from the Korean International Cooperation Agency. GGateway became an independent entity in 2016 with a mission “to contribute to the growth of Gaza’s ICT sector, by expanding its business opportunities and professional capacity” among local workers. The NGO provides services such as training, recruitment, app development and data processing. Since its inception, GGateway has created 19 training curricula, trained 620 college graduates and collaborated with 3,500 ICT professionals. No financial information on GGateway is available.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which make up the World Bank; (2) the International Finance Corporation; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2017, the World Bank Group disbursed funds totaling USD 44 billion.

The World Bank provides grants, debt and equity investments as well as technical support to entities based in middle- and low-income countries. As of June 2017, IBRD and IDA reported total assets of USD 406 billion and USD 197 billion, respectively. As of the same month, they reported outstanding loans of USD 177 billion and USD 138 billion, respectively. During the 12 months ending June 2017, IBRD disbursed USD 18 billion in new loans to 133 projects and IDA loaned USD 13 billion via 257 projects.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

World Bank press release
http://www.worldbank.org/en/news/press-release/2018/06/01/us16-million-for-new-projects-to-support-the-private-sector-and-create-opportunities-for-palestinians-in-the-digital-economy

Innovative Private Sector Development project detail
http://documents.worldbank.org/curated/en/479751528083037454/pdf/PAD-05152018.pdf

GGateway background
http://ggateway.tech/about-us/

IBRD and IDA finances
http://pubdocs.worldbank.org/en/476501524663465554/IBRD-Jun-17.pdf

MicroCapital article; June 7, 2017; World Bank Group’s IBRD Lending $400m to Industrial Development Bank of Turkey (TSKB) for SMEs, “Women-inclusive” Enterprises, Businesses Serving Syrian Refugees
https://www.microcapital.org/microcapital-brief-world-bank-groups-ibrd-lending-400m-to-industrial-development-bank-of-turkey-tskb-for-smes-women-inclusive-enterprises-businesses-serving-syrian-ref/

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