Development Impact Bonds (Results-Based Financing Model) for Palestinian Youth Employment Share Their Experience During Palestinian Skills Day
Believing in the importance of developing the skills of Palestinian youth to empower them and ensure their access to the labor market, Finance for Jobs Consulting Services, through the Development Impact Bond project, supported and participated in the Palestinian Skills Day. The event was organized by Juhoud for Community and Rural Development in cooperation with the European Union, coinciding with the World Youth Skills Day, to highlight the results-based financing mechanism, which is being implemented for the first time in Palestine and the Arab region.
In a recorded speech, Mr. Stefan Emblad, Country Director and Resident Representative of the World Bank in the West Bank and Gaza, spoke about the joint efforts of the partners in the Development Impact Bond project as a form of social investment in youth employment programs in Palestine. He emphasized that this event provides a great opportunity for many institutions to discuss innovative mechanisms for investing in the young generation, who will take on the responsibility of driving development in the future.
Palestinian Skills Day included an exhibition showcasing the leading training providers in Palestine, among them the “TAJ” project, supported by Finance for Jobs Consulting Services and implemented by Juhoud for Community and Rural Development. The event also featured a panel discussion on the concept of results-based financing, with the participation of representatives from the Development Impact Bond project’s partners, including Firoz Shahrour representing the Ministry of Finance, Mazen Asad, Project Manager of “Finance for Jobs” from DAI Global, Jalil Hazboun, CEO of Finance for Jobs Consulting Services, Ahmad Zeidan, Board Member representing the Palestine Investment Fund, and Mughanim Ghanam, General Director of Juhoud.
During the discussion, speakers highlighted the collaboration between partners and the government’s role in developing financial instruments that achieve employment outcomes with high financial efficiency, given limited resources. They also explained the role of investors in establishing a socially driven company that takes on the risk capital to design and implement training and employment programs for youth. The Development Impact Bond mechanism has so far achieved over 550 jobs, 40% of which went to women, across diverse sectors including nursing, medicine, education, information technology, occupational health and safety, construction materials quality, marketing, financial management, and others. Among them is the TAJ program targeting the furniture sector, which has created more than 80 jobs in carpentry, upholstery, and furniture marketing. Speakers expressed their hope that the Palestinian Skills Day would become a regular platform for knowledge exchange between the private sector and institutions dedicated to developing youth skills.
It is worth noting that the TAJ project is implemented by Juhoud for Community and Rural Development, with support from Finance for Jobs Consulting Services, which manages the Development Impact Bond program for youth employment in Palestine. The program is funded by four investors: the Palestine Investment Fund (PIF), the European Bank for Reconstruction and Development (EBRD), the Dutch Development Bank (FMO), and the Chile–Palestine Investment Fund (Semillia De Olivo). The Development Impact Bond is a results-based financing program where the World Bank funds the sustainable employment outcomes achieved through these bonds. Payments are made upon success through the “Finance for Jobs (F4J)” project, implemented by DAI Global on behalf of the Palestinian Ministry of Finance.
