Palestine Development Impact Bond

We are supporting the Palestinian Authority, World Bank & DAI on a Development Impact Bond to open up employment opportunities for Palestinian women and youth.

Social Finance is working with the Palestinian Ministry of Finance and Planning, the World Bank, and DAI to develop a skills training and employment Impact Bond, focused on improving employment outcomes of young Palestinians.

The Impact Bond is a component of the wider Finance for Jobs initiative, a four-year economic development programme of the Palestinian Ministry of Finance and Planning. Funded by the World Bank, which supports innovative financing approaches to jump-start job creation in the West Bank and Gaza.

Why we are doing this: 
  • Youth unemployment is high in the West Bank and Gaza – 40% of young Palestinians are unemployed
  • 30,000 young people graduate from Palestinian universities each year
  • Despite this, employers report difficulty filling jobs with qualified candidates
What we are doing: 

In response to the problem of high youth unemployment, the Palestinian Ministry of Finance and Planning, the World Bank, Social Finance, and DAI are developing an employment-focused Development Impact Bond (DIB).  The DIB, which was launched at the end of 2019, will provide approximately 1,500 young Palestinians with skills training and training-to-employment support, over a period of three years.

Investors will provide financing to delivery organisations for interventions that support participants’ transition to employment.  If the project achieves the agreed employment results, and these results are independently verified, then the Palestinian Ministry of Finance, drawing on World Bank funds, will repay investors. If the programme succeeds, social investors will be paid back their initial capital plus a return to compensate for the risk they bear.  The DIB approach will incentivise increased flexibility and adaptation both in training methods and in responding to evolving employer needs.


The Palestinian Ministry of Finance and Planning
The World Bank


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