Palestine

Vue sur Hebron, Territoires palestiniens — Photo d'illustration © Kyle Taylor, Flickr (CC BY 2.0)

AFD Group has been working alongside Palestinians since 1999, focusing its operations in Palestine and East Jerusalem on three priorities: access to local public services and stronger institutions, human development (health and training), and support for the private sector.

Against a backdrop profoundly reshaped by the war in Gaza and the deteriorating situation in the West Bank and East Jerusalem, the Group is adapting its operations to address urgent needs while maintaining its long-term engagement.

In line with France’s policy in support of a two-state solution, AFD Group contributes to strengthening Palestinian institutions and public services, supporting communities and civil society, and preserving the economic capacity needed to build a viable, democratic, and sovereign Palestinian state.

Context

Palestine has a population of approximately 5.6 million people, living across the West Bank, East Jerusalem, and the Gaza Strip.

Since October 7, 2023, the war in Gaza has severely exacerbated an already challenging situation marked by territorial fragmentation and significant constraints on the economy.

Reconstruction needs are considerable.

Against this backdrop, AFD Group combines emergency response, the maintenance of essential services, and preparations for longer-term recovery, in coordination with the Palestinian authorities, civil society, and international partners.

Our approach

AFD Group and Palestine: strengthening local public services and institutions, contributing to human development (health and training), and supporting the private sector

AFD Group operates in the West Bank, East Jerusalem, and Gaza. It currently has 40 projects under implementation, representing more than €400 million over their implementation periods, which average five to ten years. These projects are carried out by AFD, Proparco, and Expertise France.

Its operations aim to strengthen government institutions, municipalities, civil society, and businesses in order to preserve Palestinian capacities, ensure access to essential services, and support economic activity.

AFD Group’s work has three priorities.

AFD supports investments and reforms in water and sanitation, local governance, and health, while also responding to emergencies and the effects of destruction.

Water and sanitation is AFD’s main area of intervention in Palestine, accounting for nearly 60% of ongoing projects. AFD works across the entire water cycle, from securing water resources to wastewater collection, treatment, and reuse.

Among its flagship initiatives, the Nexus North project finances water supply infrastructure in the northern West Bank and promotes the use of renewable energy.
The TAJDID project, signed in 2026 and co-financed with the European Union and KfW, aims to improve sanitation services for approximately 70,000 residents of West Jenin and enable treated wastewater to be reused for irrigation.

Local governance is another priority. AFD works with municipalities, village councils, and local stakeholders to maintain local public services, strengthen their capacities, and improve territorial resilience.

In particular, AFD supports the 138 municipalities in the West Bank through the Municipal Development Program and supports rural development in Areas B and C, helping to improve access to basic services, supporting small businesses and income-generating activities, and helping communities remain on their land.

AFD Group provides significant support to Palestinian civil society, which plays an essential role in maintaining services and supporting communities.

In East Jerusalem, AFD has supported Palestinian organizations since 2020, particularly those working with young people and in the fields of education, culture, and support for vulnerable communities. This commitment was further strengthened in 2026 through additional funding from the European Union.

In parallel, Expertise France implements the EU-funded PEASCE program, which focuses on strengthening civil society and the media.

In the health sector, AFD helps maintain access to healthcare within a system severely affected by the war in Gaza and the financial crisis in the West Bank and East Jerusalem.

In the West Bank, AFD notably supports Ibn Sina College, the public nursing and midwifery college in Nablus.
In East Jerusalem, it supports the expansion and energy-efficient renovation of Saint Joseph Hospital.
In Gaza, AFD continues to support maternal and child health in partnership with UNICEF, WHO, and UNFPA.

In a particularly constrained economic environment, Proparco works to preserve and develop the Palestinian economy, support employment, and strengthen the financial system.

Its work relies particularly on partnerships with Palestinian banks and microfinance institutions, including Bank of Palestine, Faten, and Vitas. Proparco also finances Palestinian companies, particularly in the agribusiness sector.

Since 2020, its financing portfolio in Palestine has exceeded €135 million, helping finance the Palestinian economy and maintain businesses’ access to credit.