Paris Conference of donors for the Palestinian Territories
With the Paris Conference of December 17th 2007, it has been decided to double the activity of AFD in the Palestinian Territories for the coming years in order to contribute to the implementation of the Palestinian Reform and Development Plan.
AFD is proud to announce that two of its projects have been signed during the Paris Conference of December 17th, and it particularly happy that the export promotion project in the olive oil sector has been signed
Export Promotion Project in the Olive Oil Sector in Palestine
A 1,25 million Euro agreement will be signed on Dec 17th 2007 in Paris for an export promotion project in the olive oil sector.
The olive oil sector can be considered as a major social and economical component (3,5% of the GDP) which organizes the Palestinian rural societies, providing incomes and jobs. The area covered by olive trees corresponds to more than 50% of the total cultivated area, and 70.000 families have the olive oil production as their main source of income. Together with fruits, vegetables and cut flowers, olives and olive oil are the major agricultural products to be exported.
Given the know-how of the farmers, the strong image of Palestine, and a typical quality of the Palestinian olive oil, this product has great potential for exportation. A 3000 tons quota free of taxes to Europe is however hardly used. Lack of organisation and extension services in the olive oil value chain continue to have a negative impact on the quality of oil.
The main activities of this new project will be i) develop extension services, 2) train and strengthen panel testing, 3) set-up a quality trade mark, 3) improve the quality of certification, and finally develop market studies and promotions.
Four partners are involved for the implementation and management of the project:
- Paltrade as a trade promoting agency will assist the Palestinian industries in accessing the export market and will coordinate the different components of the project.
- The Palestinian Farmers Union (PFU) is a non-profit organisation representing 220 committees and agricultural groups in the West Bank and Gaza Strip. The PFU will support the implementation and the organisation of the cooperatives.
- The Palestinian Food Industries Association (PFIA) is a 133 members association representing the interest of food industries.
- The Palestinian Standard Institution (PSI) is Palestine’s standards organisation and connection point to the global quality infrastructure.
The beneficiaries of the project are small-scale family farms, cooperatives, producers, presses, traders and exporters of olive oil in the West Bank. This project will be a contribution to the much needed revitalization of the Palestinian economy, after several years of restrictions on access and mobility. .
The activities of the French Development Agency in the Palestinian Territories
AFD group has launched its interventions in the Autonomous Palestinian Territories (APT) since November 1998, almost 10 years ago, and its commitments over this period amount 117M€.
The opening of the AFD office in Jerusalem in August 1999 and its first interventions in the Territories were part of the structuring process brought about within the framework of the Oslo Agreements.
Events related to the second Intifada and the political crisis, generated by the rise to power of the Hamas government beginning 2006, have made it difficult to continue with project implementation (problems related mainly to accessibility to project sites), and have simultaneously led to a severe degradation in the socio-economic conditions of the Palestinian population.
Within this context, AFD assistance has been re-channelled to more decentralized local job creation projects, while continuing to finance large infrastructure projects central for a durable development. For their part, the Palestinian partners and institutions have shown a remarkable adaptability to meet their fixed objectives. Due to these collective efforts, the activities continued and new projects were initiated to improve the living conditions of the communities in a durable manner. Thus more than 650,000 inhabitants, i.e. 20% of the population, have benefited from these interventions.
AFD tries to maintain a balance between the continuation of large infrastructure projects in spite of the inherent risks, and the interventions that have strong impact in terms of job creation and support to the local private sector, and which are important given the existing economic and social situation in the APT.
It has been a constant concern to maintain a significant volume of financing for the Gaza Strip, which has been severely affected by the unfavourable political developments in recent years. In the implementation of AFD funded projects, particular attention is brought to the NGO association comprising actors in decentralized cooperation, who are particularly active in Palestine.
Partnerships established with NGOs have included both national, such as the Welfare Association and international ones (MDM France, Green Cross France).
