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The Lebanese markets which were dynamic amidst the positive political developments during the fourth quarter of the past year have slowed down during the period of consultation for the formation of the new cabinet, according to Beirut Traders Association Fransabank Retail Index 4th Quarter 2016. The index showed that the lethargy prevailed even after the announcement of the government, posting 54.78 in the last quarter of 2016 against 53.41 in the third quarter. And despite the concordance of above stimulating events with the end-of-year and Christmas holiday season, the markets have not sufficiently recuperated. The impasse in local consumption across the various retail trade sectors has become structural, the index reported, noting that the psychological factor has stopped to be the only or key stimulus, no matter how vital it is. There were fundamental considerations related to the purchasing power and the priorities of spending, as well as to the profiles of consumers, (Lebanese citizens, refugees and tourists), according to the index analysis. The purchasing power of Lebanese households has drastically slid as a result of the dire economic conditions combined with an absence in growth and a ferocious competition in the labor market by skilled Syrian labor force who also have lower remuneration demands compared to the Lebanese, as well as a decline in the size of remittances from Lebanese expatriates to their families in Lebanon. The index found that the outcomes among retail sectors have been incongruent. While some sectors continued to witness a slowdown in activity, other sectors were able to achieve relative improvement. This proves, the index noticed, that the rationalization or prioritization in consumption is what matters most and that households spend mainly on basic needs and goods and dilly dally in non-essential items. As for the prime sectors that experienced a decline, they were as follows: car dealers (-13.51%), home accessories (-9.94%), clothing (constant fall reaching -8.91%), restaurants and snacks (-7.26%), malls (-7%), hypermarkets and food shops (-0.61%) and liquor and spirits (-0.27%). (Al Diyar, Al Hayat, February 23, 2017)

 

The regional startup accelerator, Flat6Labs Beirut (www.flat6labsbeirut.com), which is a partnership between Flat6Labs and ArabNet, launched yesterday the USD 20 million ‘Lebanon Seed Fund’ to support some 100 startups over the next 5 years. To note, the Cairo-based Flat6Labs is a regional business accelerator program that fosters and invests in talented and ambitious entrepreneurs with cutting-edge ideas. The fund which is approved and managed by the Bank of Lebanon by virtue of Circular 331, helps seed and early stage Lebanese startups through investment to provide a range of services that assists enterprises from the phase of idea all the way to early growth. Accordingly, startups will receive contributions from the seed fund program at a value of USD 30 thousand to USD 50 thousand, in addition to participation in a 16-week mentorship program on seed funding. Early stage startups will receive USD 100 thousand to USD 500 thousand, as well as access to Flat6Lab Beirut resources and operational guidance to kick off and expand their businesses. It should be noted, that as of yesterday, Flat6Lab Beirut will start accepting applications on flat6labsbeirut.com. (Al Diyar, February 24, 2017)

Horeca Lebanon, the country’s premier hospitality and foodservice fair, returns to Beirut International Exhibition and Leisure Center (BIEL) for its 24th edition from April 4 to 7, 2017. According to a statement by the organizing company, Hospitality Services, the event has become a regular meeting place bringing together international experts, owners of leading hotels and prominent food and beverages companies, as well as masterminds and decision makers in the sector. This year’s expo, the statement said, will host over 350 local and international businesses supplying goods from across the foodservice and hospitality industries, mainly from Belgium, Italy, France, the Netherlands, UAE, Egypt, Syria, Jordan, Korea and Turkey. It will showcase more than 2000 famous brands, allowing visitors and exhibition goers to discover the new and yet to come foods and kitchen tools, in addition to the latest packaging, packing and branding ideas. The event this year will see lavish activities, more than 10 daily shows, including cooking and cocktail contests, dialogue tables and forums. Around 500 professionals are expected to compete with talented students in a variety of contests under the supervision of a competent jury comprising 60 international hospitality experts who will also share their expertise with the guests through open workshops. (Al Hayat, February 23, 2017)

 

The eighth edition of ArabNet conference was launched on Monday in collaboration with Banque du Liban. Over 1500 corporate executives, entrepreneurs and investors were present at the forum to exchange ideas on digital innovation and entrepreneurship as a key facilitator for the future economic development in the country. On the occasion, the founder and CEO of ArabNet, Omar Christidis, emphasized the continuous advancement in the local digital sector supported by the Bank of Lebanon’s Circular 331, which upped the country to second place in the MENA region, with special focus on youth talents and achievements in the digital technology business sector. Another speaker at the conference, Raed Sharafeddine, first vice governor of the Central Bank, pointed out that after three years of the launch of the Central Bank’s initiative in support of digital knowledge economy, Lebanon has started to reap the benefits. Nearly 800 startups are currently instituted in Lebanon, Sharafeddine maintained, pointing that the sector contributed to securing around 6 thousand jobs and added wealth estimated at close to USD 1 billion. On the legal part, the minister of trade and economy, Raed Khury, disclosed that his ministry is presently revising and amending a number of bills, namely, the laws of trade, electronic procedures, partnerships between the public and private sectors, financial markets systems and many others. (Al Diyar, Al Mustaqbal, February 22, 2017)

 

 

The minister of state for administrative development affairs in the new government, Inaya Ezzideen, launched yesterday the job and orientation fair, 2017, at the Chamber of Commerce, Industry and Agriculture for Tripoli and the North, in the presence of concerned dignitaries. The 3-day event is organized jointly by the European Institute for Cooperation and Development (iecd) and Semeurs d’avenir association. In her opening address, minister Ezzideen pointed out that the exhibition is just a single stride in a comprehensive initiative that is part of the AFKAR program funded by the EU and controlled by the Office of State for Administrative Reform (OMSAR). It seeks to build the skilled capacities of young men and women, as well as small enterprises, in Tripoli, Akkar and Diniyeh areas to facilitate their access to the much needed areas of the labor market, particularly in the social and economic spheres, Ezzideen explained. The  job and orientation fair, she said, acts as a vehicle for communication between schools, companies and civil society associations, and an awareness tool on the requirements of the market, mainly in the professional and technical sectors. It helps to bridge the gaps between vocational schools students and the recruiting companies. For her part, Jumana Sayadi, representing the industry minister, described the expo as a unique prospect for communication between youth talents and the major industrial and commercial institutions. (Al Diyar, February 22, 2017)

 

In its issue of today, the Daily Star highlighted the hardship that will befall 300 Syrian girls and boys aged between 4 to 14 years due to a recent decision by Beyond organization.  Beyond provides relief to Syrian displaced but it will now close its office in Ghazza, western Beqaa, through which it was helping many Syrian families by providing social and psychological care particularly to children.  Beyond official and responsible for child protection in the Gazza camp, Enas Amhaz, noted that the main reason for this decision is the end of their project funding.  She added that Beyond shall be closing other centres for the same reason.  Amhaz clarified that Beyond started working three years ago in Syrian refugees settlements and was providing education services.  Since 2014, it started a project entitled “education for all children”.  The latter targeted Syrian children and provided them with awareness raising, psycho-social support, strengthening self-confidence, awareness of rights as well as integration in host communities and in local schools.  Amhaz concluded by saying that her organization notified stakeholders in the region of this decision some two months ago and also provided training for parents so that they are able to support their children after the organisations withdraws. (Daily Star, February 21st 2017)

 

The president of the association of industrialists, Fady Gemayel, warned in an interview to Al Mustaqbal newspaper, of the dangers resulting from the significant drop in Lebanese industrial exports.  Such dangers will affect the industrial sector as well as the Lebanese economy in general.  Gemayel noted that according to existing indicators, industrial exports will score an unprecedented low of USD 1.2 billion (one third of total industrial exports) by the end of 2016 compared to the high of USD 3.65 billion reached a few years ago and that is before these started to decline as a result of negative circumstances facing all economic sectors in Lebanon over the past few years.  Gemayel added that there are 100s of industries working to export their products and which now face imminent dangers of closure in view of the burden they withstood during the past few years.  According to Gemayel, such entities can no longer bear any more hardships and it is now time, with the new era and the new cabinet which herald renewed trust, and thus, it is now high time to take appropriate measures to compensate for losses in exports.  Gemayel revealed that his association suggested a programme to the Cabinet that would incentivize exports through, a) subsidizing export costs by USD 60 million; b) providing operational capital; c) increasing Lebanese exports to countries from which Lebanon imports; 4) asking countries and organization helping the displaced to buy Lebanese products to distribute to the displaced; 5) creating an association to seek exports to new countries. (Al Mustaqbal, 9 February 2917

 

The US Ambassador to Lebanon, Elisabeth Richard, launched last Friday the two-year Technical Assistance Program towards 38 Municipalities and Federations of Municipalities in the presence of mayors of various Lebanese districts. On the occasion, Richard stressed the long-standing support of her government towards reinvigorating the municipalities, especially that they contribute significantly to the economic and social development in the country. This USD 15 million worth of project, Richard explained, is part of the ‘Building Alliance for Local Advancement, Development and Investment’ (BALADI) program funded by the US Agency for International Development (USAID). The project provides proper and feasible technical assistance to the municipalities and civil society organizations in order to enhance their internal regulations and professional performance, Richard said. It also represents a backbone for local non-government groups in support of their public causes related to public welfare, Richard added. Also according to a US Embassy statement, the above program guides municipalities to sustain their inner audit departments and administrative structures through organizational development as well as an improved financial, communication and disaster management systems. The program furthermore supports selected municipalities in handling the complex waste management file aggravated by the heavy influx of Syrian refugees into Lebanese host communities. (Al Mustaqbal, February 18, 2017)

 

The newly-appointed minister of economy and trade, Raed Khury, demanded in a letter to the Higher Relief Council last week that it releases the funds allocated to help apple growers. To recall, a ministerial decree issued in October, 2016, required subsidizing apple production as such, LBP 5 thousand per crate. In the meantime, following a meeting in Halba with the agriculture minister, Akkar potato farmers urged him to halt the entry into the country of low-quality Egyptian potatoes, and to find markets for some 60 thousand tons of local surplus production, as they anticipated this year’s harvest to reach some 100 thousand tons. In this context, the president of the Potato Farmers’ Cooperative’s Association, Omar Hayek, warned of an imminent disaster if external importation of agricultural goods is not regulated or foreign markets for domestic production secured. (Al Diyar, February 17 and 19, 2017)

 

Agriculture minister see no future to the sector without cooperation with the private sector 

Amidst ongoing Lebanese farmers protest against the official neglect of the agriculture sector which enjoys only 1% of the state budget, newly-appointed minister of agriculture, Ghazi Zu3ayter confirmed that the budget allocated to his ministry does not exceed LBP 67 billion (equivalent to USD 44.6 million), out of which LBP 60 billion (USD 40 million) are used up in salaries and rent. The remaining amount, he said, barely covers projects planned for the sector, “which is unquestionably unfair” as he put it. Zu3ayter was speaking during a meeting convened by the Federation of the Chambers of Commerce, Industry and Agriculture in Lebanon, led by Mohammad Shukair, on conditions of agriculture in the country, where he emphasized a number of unavoidable solutions to invigorate the sector, which include: boosting cooperation between the private and public sectors; increasing the budget of the ministry developing a clear-cut strategy;, and accelerating government reimbursement through the state-run agency, IDAL. The minister also called attention to a draft law he is seeking to endorse, which allows the establishment of an agricultural disaster risk insurance, to be funded by involved stakeholders. For his part, Shukair made clear that the agricultural sector represents an important pillar of the economic, social and food security sectors in the country, and advised focusing on key topics. These are: the protection of national production from illicit foreign competition; organizing training courses for farmers in cooperation with the ministry and the agricultural coops in order to improve the quality and increase the capacity of production; the renewal of crop diversity and increase of agriculture budget. (Al Diyar, Al Mustaqbal, L’Orient Le Jour, February 17, 2017)

 

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