Lebanon
Global Communities has worked with local institutions to strengthen the Lebanese economy, supporting entrepreneurs and helping banks resume lending in the aftermath of conflict and crisis.
Global Communities has been working side-by-side with communities in Lebanon since 1997. Our programs have ranged from agricultural development to supporting education and improving the environment. Lebanon was part of a multi-country program supported by the Caterpillar Foundation to connect young people with job training and placement.
Additionally, Global Communities has worked to support Syrian refugees in Lebanon, as well as Lebanese families who have opened their homes to those in need.
In 2020, Global Communities delivered a rapid response to the devastating port explosion in Beirut, sharing expertise and resources across humanitarian assistance, sustainable development and financial inclusion portfolios to raise funds and deliver cash grants to help homeowners and businesses rebuild.
Current Programs
Delivering Commercial Capital to Low-Income Customers
Vitas Lebanon has been a major player in the Lebanese microfinance sector since 1999, serving some of Lebanon’s most vulnerable populations through conflict, political upheaval, and economic crisis. Initially a microcredit program created by Global Communities, it evolved into a Lebanese services company, and since 2007, has operated as the first Lebanese microfinance institution to be formally regulated by the Central Bank. This change in legal status has enabled Vitas Lebanon to provide loans directly to its clients using its own loan capital, in addition to the loans it already provides through four partner banks. The company’s entry to the Vitas Group in 2012 enabled it to expand direct lending capacities even further, drastically increasing its ability to bring commercial capital to low-income populations who are not served by traditional financial markets.
In 2017, a Lebanese bank, Saradar Bank, finalized its purchase of 49% of Vitas Lebanon, which allowed Vitas Lebanon to leverage the bank’s infrastructure to further expand products throughout Lebanon.
In recent years the Lebanese people have endured a global pandemic, the Beirut port blast, political instability, currency devaluation, and war. Nevertheless, Vitas Lebanon has endured these crises and remains steadfast in serving its client. Vitas Lebanon currently has 3,428 active clients and a loan portfolio of $7 million.
Expanding Access to Credit
In 2013, the U.S. Development Finance Corporation, (then known as Overseas Private Investment Corporation) agreed to provide a $25 million, 15-year Loan Guaranty Facility to Vitas Lebanon to support expanded lending to underserved entrepreneurs. The new agreement follows an earlier facility that was established to help banks resume lending following the 2006 conflict. Under the new facility, the Development Finance Corporation covers loans made directly by Vitas Lebanon, allowing them to serve a growing number of clients across the country.
Previous Programs
Support for Syrian Refugees
Global Communities has worked to assist Syrian refugees living in Lebanon with the support of the UN Refugee Agency, UNHCR, and other partners. Programs have included rehabilitating and weather-proofing homes of Lebanese families hosting Syrian refugees, as well as providing direct shelter, water and sanitation support to thousands of Syrian households.
Global Communities provided access to habitable, seasonally adequate shelter by prioritizing critical upgrades to existing shelter conditions. Our programs also worked to strengthen community cohesion through collective support for construction of a water reservoir. (Completed in 2016)
impact
14,168
active clients
$23 million
loan portfolio
90%
of Vitas Lebanon’s portfolio
is direct lending
resources
news
The Vitas Lab: Building Brighter Futures Through Financial Innovation
By Rohit Kulkarni and Lizzie Hickman Low- and middle-income countries were hit hard by COVID-19, as revenue streams dried up and government enforced lockdowns shuttered workplaces. Cracks in Lebanon’s financial system started in 2019 but were exacerbated by the pandemic. As a result, the Lebanese economy has undergone one of the worst peacetime collapses in…