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Cooperative Support Programme for Palestine (CSP-OPT)

eval_number:

2290505

eval_url:

https://webapps.ilo.org/ievaldiscovery/eval/2290505

location:

country:

State of Palestine

region:

Arab States

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eval_title:

Cooperative Support Programme for Palestine (CSP-OPT)

recommendations:

date:

2026-04-17 00:00:00.0

themes:

theme:

Enterprises

category:

Cooperative

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comments:

Contingent upon resources

action_plan:

The ILO welcomes this recommendation and acknowledges that access to finance remains a key constraint to the development, sustainability, and scaling of cooperatives in the OPT. Under the CSP programme, the ILO has taken concrete steps to address this challenge. Notably, the ILO developed a comprehensive feasibility study and operational proposal for the establishment of a Cooperative Development Fund (CDF), to be managed by the Cooperative Work Agency (CWA). This proposal drew on international good practices, including experiences from countries such as Italy. While the proposal was technically sound and aligned with cooperative needs, evolving institutional arrangements, the reintegration of the CWA into the Ministry of Labour did not allow for its adoption at this stage. In parallel, the ILO supported efforts to strengthen existing cooperative-based financial structures, particularly through capacity-building assistance to the Union of Cooperative Associations for Savings and Credit (UCACS). This support contributed to enhancing the institution’s resilience and liquidity, enabling it to progressively restore its ability to provide financial services to its members during a period of significant economic stress. Moving forward, the ILO encourages the CWA under the leadership of the MoL to revisit the CDF modality as a potentially viable and structured solution to address cooperatives’ financing needs. This could include the development of appropriate by-laws and governance arrangements, with a view to operationalization should financial resources become available. Subject to demand and resource mobilization opportunities, the ILO stands ready to provide technical support for the design and implementation of such a mechanism. At the same time, complementary pathways could be pursued. These include continued capacity development of cooperatives in financial management and literacy, as well as awareness-raising and engagement with financial institutions and microfinance providers to promote a better understanding of the cooperative model. This could facilitate the development of tailored financial products that are aligned with cooperative principles and governance structures. Addressing access to finance will also require attention to the broader enabling environment. In this regard, dialogue with government stakeholders will be important to review regulatory frameworks, eligibility criteria, and legal provisions affecting cooperatives’ ability to access external financing. To support these efforts, the ILO may facilitate multi-stakeholder dialogue platforms bringing together government entities, the CWA, social partners, cooperative representatives, and financial service providers.

management_response:

Partially Completed

progress:

Partially achieved

admin_units:

RO-Arab States/DWT-Beirut

title:

Recommendation 2: Establish a feasible pathway for cooperatives to access finance The Ministry of Labour and the Cooperative Work Agency, with support from the International Labour Organization and in consultation with cooperative representative bodies and relevant stakeholders, should assess and determine the most feasible option to improve cooperatives’ access to finance. Possible options may include operationalizing a cooperative financing mechanism or establishing formal referral arrangements with existing financial institutions. Any chosen approach should take into account regulatory requirements, eligibility constraints, and the financial management capacities of cooperatives.

project_symbols:

PSE/19/01/ITA

url:

https://webapps.ilo.org/ievaldiscovery/recommendations/2383726

information_source:

Country Office

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