World Bank invests $15m. to boost Palestinian IT sector, create jobs
The new project aims to help create more high-quality jobs in the Palestinian IT sector, as well as help boost the capabilities of existing firms in the field.
By AARON REICHComputer keyboard [illustrative].(photo credit: ING IMAGE/ASAP)
The World Bank approved a grant of $15 million for the improvement of new sustainable economic opportunities through the information technology (IT) sector for Palestinian youth.The new project, which is called the Technology for Youth and Jobs (TechStart) Project, aims to help create more high-quality jobs in the Palestinian IT sector, as well as help boost the capabilities of existing firms in the field.“The IT sector has the potential to make a strong contribution to economic growth,” Kanthan Shankar, World Bank country director for West Bank and Gaza, said in a statement. “It can offer opportunities to Palestinian youth, who constitute 30% of the population and suffer from acute unemployment.“There are more than 3,000 IT graduates every year from Palestinian universities, and most of them do not have a job. Moreover, the sector is less vulnerable during crises and can accommodate remote work during times like the COVID-19 pandemic, or other times when restrictions on mobility are placed on the population. The project is part of the World Bank’s strategy to invest in a stronger entrepreneurship ecosystem for job creation.”Unemployment has always been a serious issue for Palestinians, with over 25% of working age Palestinians unemployed before the coronavirus outbreak hit. Youth unemployment is also cause for concern, standing at 37% overall in the fourth quarter of 2019 and at 61% in Gaza. The participation of Palestinian women in the workforce is the lowest in the Middle East and Northern Africa, though this is mainly due to restrictions on mobility.However, it is possible that the IT sector could become a new source of employment and economic development. With a growing trend of IT outsourcing in the Palestinian territories, demand for IT services has begun to significantly increase.Another advantage is the IT sector's reliance on technology and human capital. With this in mind, the project will encourage companies to focus their investments in these two resources, which can help facilitate the supply of high-quality IT services in the Palestinian territories. This, in turn, could help tap into this new source of job creation to develop an economic ecosystem that promotes research, development and innovation.One way the project will do this is by providing seed grants in order to stimulate private investments, such as in research and development.Parties from the private sector will still be able to invest in the budding ecosystem, such as new IT firms, training and human resources services.But in addition to private sector investments, the project can also help attract direct foreign investment in order to stimulate demand for Palestinian IT services. This could help create partnerships with global tech firms and improve market access.
Most importantly, though, is that it will help spread word of the market opportunities in the budding sector, which can help expand opportunities and broker new deals that will have the local IT firms bringing in new income and be exposed to new technological and marketing knowhow. This is especially important for the Palestinian territories, which has often struggled to attract investment due to the fragile and conflict-affected environment.“The outlook for the Palestinian IT sector is promising if the right actions are taken,” World Bank senior private sector specialist Iulia Cojocaru explained.“The project offers a set of interventions to support the transfer of hi-tech knowledge and build the practical skills of graduates, and, at the same time, increase sector competitiveness and expose IT firms to global best practices and standards.“While improving the overall tech ecosystem and attracting investments, Palestinian educated youth will have new opportunities to find high-skilled jobs.”
![Computer keyboard [illustrative]. (photo credit: ING IMAGE/ASAP)](https://images.jpost.com/image/upload/q_auto/c_fill,g_faces:center,h_537,w_822/264515 "Computer keyboard [illustrative].")