GAZAN CLOTHING PRODUCER BACK TO BUSINESS AFTER TOTAL SHUTDOWN
With export markets cut off and all of its domestic locations shut down in 2021, the future looked bleak for the Baby Center Company, a manufacturer of children’s clothes in Gaza. The General Manager, Sulaiman Deeb, faced an uphill battle when he bravely reopened in 2022, especially with a weak power supply and sewing machines in need of replacement, but USAID made sure that he was not alone in his path to recovery.
Mr. Deeb studied nursing in Gaza City, and after graduation, he couldn’t find a job. He decided to go to work in Israel where he found employment at a textile company. He advanced in his career to take on management of quality control. His management experience prepared him to establish his own company, in Gaza, and his experience in the Israeli and West Bank markets provided the knowledge necessary to target his products to export markets.
Mr. Deeb established his company, Baby Center, in 1995, based in Khan Younis, Gaza Strip. It started with four retail shops and a factory for garment production, specializing in children’s clothes. At that time the company sold part of its products in the local Gaza market through its retail locations and the other part were exported to Israel and West Bank markets.
The combination of COVID-19 and the 2021 War in Gaza severely impacted the business. Supply lines and export shipping was cut off. In 2020 the company closed the garment factory and three of its four retail locations. In May of 2021, the last shop was forced to close because of the conflict. The company’s revenues decreased by 66% in 2020 and by 39% in 2021. As a result of the factory closure, critical equipment fell into disrepair. This, in addition to the ongoing problem of power shortages, made it very difficult for Mr. Deeb to reopen his business in the aftermath of the economic shocks.
In 2022, Mr. Deeb applied for Recovery Assistance under SMART’s Private Sector Rapid Recovery Program and became one of over 30 Gazan SMEs approved for a cost-shared Recovery Plan. The Recovery Plan, which was funded 51% by the firm itself, included the procurement of energy-efficient stitching and cutting machines and other equipment to help the company recover productive operations. Furthermore, the cost-shared Plan funded the expansion of the firm’s rooftop solar panels to provide clean reliable energy for the new equipment. Lastly, SMART provided training for accounting software and technical assistance for feasibility studies to help the company be more competitive in export markets. Since the start of the Recovery Plan, sales have increased by 297%, driven primarily by new buyers in the Israeli market. Mr. Deeb’s courageous recovery has created jobs for 30 people in the Gaza Strip, 20 of whom are female and 16 of whom are youth.
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