Facility for new market development (FNMD) to strengthen the private sector in the Occupied Palestinian Territories

The report is an independent evaluation of the Palestinian Facility for New Market Development (FNMD) project which is jointly financed by DFID and the World Bank and provides a matching grant scheme for supporting SMEs. The report provides a review of the achievements of the project in addition to recommendations for new private sector development projects.

Main findings

• The evaluation notes that FNMD met its targets with respect to number of firms planned to be supported, increase of exports and sales
• With regards attribution of the benefits to FNMD the study reports that FNMD beneficiary SMEs achieved similar sales increase as non-beneficiaries but with lesser capital investment
• The data on cost per job, cost per market and cost per product is noted to be reasonable yet 'quality of jobs created, depth of market penetration and level of innovation' require further consideration
• Based on the interviews conducted the evaluation highlights that FNMD has contributed to creating a sustainable market for business development services as firms are willing to access services without subsidies.

Intervention description

The FNMD project provided SMEs with grants which were matched by the clients and were particularly aimed toward providing business development services including consulting, training or support for trade fair participation. It aimed to develop SME capacity to expand into new and improved markets and products in addition to supporting the local market for business development services.

Evidence methodology

• The evaluation was based on the outcomes of the project for the clients of FNMD i.e. benefiting SMEs and measures number of firms assisted, increase in exports, volume of sales, etc. Additionally quantitative information on cost per job, cost per market and cost per product were evaluated for assessing value for money.
• The project reviewed various FNMD documents and reports including internal assessments, policy papers and studies commissioned.
• Additionally monitoring and evaluation data collected as part of the FNMD and the evaluation reports including cost-benefit and risk perception reports were analysed.
• Primary data included face to face interviews and web based surveys of clients and non-clients.

Useful for:

Private Sector Development projects, matching grant interventions