Lebanon gets $350m for welfare and digital growth

Lebanon will receive $350 million from the World Bank to provide social protection for the vulnerable during the country’s economic and financial recovery and accelerate its digital transformation to support growth.

The investments include two new projects aimed at impacting people’s lives by providing social protection to the poor, promoting the economic inclusion of women, youth and vulnerable groups, strengthening social-protection delivery systems and accelerating the digitalisation of public services.

“Lebanon is witnessing a fragile recovery. Our new financing package is designed to deliver broad and high-impact benefits across society,” Jean-Christophe Carret, division director in the World Bank’s Middle East department, said in a release. 

These efforts will strengthen Lebanon’s economic recovery, job creation and the country’s ability to deliver high-impact public services to all citizens, he said.

The World Bank has allocated $200 million to the social safety-net enhancement and system-building project, which will provide cash for poor and vulnerable households. The project will also increase access to economic opportunities and social services with a focus on women, youth and the vulnerable.

The digital acceleration project will receive $150 million to provide citizens with better access to essential government services and economic opportunities, and to empower businesses and entrepreneurs through a more secure digital environment and expanded market access.

In April last year, the World Bank agreed to lend Lebanon $250 million for its most urgent reconstruction needs.

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Earlier this week, Qatar said it would provide Lebanon with about $434 million in financial support, mostly aimed at the country’s ailing energy sector.

In October, economy and trade minister Amer Bisat said Lebanon was edging closer to securing a long-awaited IMF loan to revive its struggling economy, but major hurdles remained.

Lebanon has been mired in a debt, economic and financial crisis since 2019, following decades of mismanagement and geopolitical challenges.