Finance for Jobs (F4J)
The Finance for Jobs (F4J) initiative is designed to tackle unemployment in Palestine by leveraging innovative financing mechanisms, particularly a Development Impact Bond (DIB). The project focuses on creating employment opportunities by aligning job seekers skills with market demands. It targets young Palestinians aged 18-29, with a significant emphasis on female employment, aiming to address the high unemployment rates among educated youth and women. The initiative involves training programs tailored to the needs of employers in sectors like healthcare, industry, and construction. The impact bond structure incentivizes investors by linking financial returns to successful employment outcomes, thereby ensuring that training programs are effective and aligned with real-world labor market needs
Pros
The Impact Bond model ensures that funding is tied to achieving tangible employment outcomes, fostering accountability and efficiency.
The initiatives design allows for rapid adjustments to training programs in response to changing market demands, which was particularly beneficial during the COVID-19 pandemic
Cons
Setting up the bond involved complex contractual arrangements and requires rigorous monitoring and evaluation systems.
The upfront costs associated with designing and implementing a DIB can be higher compared to traditional funding mechanisms
Partners
Palestinian Authority
World Bank
European Bank for Reconstruction and Development (EBRD)
Palestine Investment Fund
Semilla de Olivo
FMO (Dutch entrepreneurial development bank)
Social Finance UK
Deloitte (Verification agent)