Shortage of raw materials
Photo: IDF's Spokesperson Unit
More than half of Gaza factories non-operational
Gisha Center for freedom of movement says Israeli policy of border closure destroying industry in Gaza, despite transfers of supplies into the territory
Some 60 percent of Gaza factories are non-operational due to Hamas' takeover of the territory and the closure of crossings to Israel, according to a report published Wednesday by the Gisha Center for the Legal Protection of Freedom of Movement for Palestinians. The report stated that recent events have resulted in a total economic embargo of Gaza.
The report claimed that, despite the recent transfer of food and other supplies by the IDF, "Israeli policy is destroying the business sector, creating a new need for food rations, increasing the dependence of the Gazan economy on Iranian funds and raising the Gazan population's need for Hamas welfare."
The Gaza Strip contains 3,900 plants for manufacturing food, building supplies, paper, wood products, steel, plastic, rubber and small artistic products. According to Gisha, most of the factories are non-operational, largely because of a shortage of raw materials.
Prices of these materials have already gone up 15 to 50 percent, said financial sources in Gaza. They estimated that all production would be halted within a week. Gisha reported that ten percent of Gazan factory workers – 30,000 out of 300,000 - have already been laid off or dismissed.
Amar Hamad, deputy director-general of the Palestinian manufacturer's association, told Ynet, "Israeli decisions are ruining the Palestinian economy. Border closures… and inability to import raw materials are paralyzing Palestinian industry."
Hamad also blamed the prohibition on collaboration between Palestinian and Israeli banks. "We can't cash Israeli checks in Palestinian banks. All these issues are interdependent. Israel is punishing the people, not the Hamas government," he said.
"We, the private sector, are paying the price. We hope Israel won't punish all of us. It needs to understand that we have basic needs. Many people have lost their livelihood due to these closures," he added.
