Spotlight on Opportunities

The Ministry of Economy and Trade and ‘Invents’, an expert in developing strategies and managing investments, launched a study entitled "the national strategy for medium and small enterprises for 2020".  The study was launched during the Start-up Lebanon conference held in New York (For more information, click here). According to this study, 90% of currently active enterprises are either small or medium sized. The study suggests that small and medium enterprises be defined according to their annual income and number of staff. Micro enterprises are those which annual income does not go beyond 300,000 USD compared to 3.3 million USD for small enterprises and 16 million USD for medium enterprises. The strategy also defines the key objectives or targets which would contribute to developing and improving the competitiveness of enterprises. The strategy also highlights initiatives which would help small enterprises in overcoming challenges to development such as access to capital and markets and ability to generate employment.

Our opinions and ideas about prostitution and how it operates are built upon several “myths” and misconceptions. This booklet lists and refutes some of the most common misconceptions and myths about prostitution with the purpose of showing that they are unfounded and misleading. Our aim is to raise awareness in our society so that we cease to advocate for these myths as infallible or undeniable facts.
Full Campaign can be seen on: http://bit.ly/1PYh4h3

Since years, migrant domestic workers (MDWs) have been struggling to achieve their basic rights. In 2015, a union for domestic workers was founded with a mission to protect and defend their rights, but the Lebanese Law was interpreted in such a way as to deprive them of the right to organize, knowing that there is no clear legal text that prevents them from doing so. Although the number of MDWs in Lebanon is estimated between 150 and 220 thousand workers out of an estimated labor force of 1.45 million people, domestic workers are still excluded from the labor law as stated in Article 7. As a result, these workers do not benefit from their rights to minimum wage, maximum working hours, paid leave… and today they are intentionally deprived of the right to association and organization.
For more information: http://bit.ly/1cuy95O

Labor Minister Sajaan Azzi voiced his regret that many private educational institutes, particularly universities, were hiring foreign faculty members instead of Lebanese teachers. Speaking to Al Diyar daily, Azzi pointed out that unemployment has increased by 346,000 people with the influx from Syria, according to recent International Labor Organization estimates. He insisted that his Ministry has stopped issuing work permits to foreigners, including Syrians, except in sectors where there are shortages in Lebanese workforce. Azzi noted that enterprises not observing Labor Ministry decisions and recruiting foreign workers, namely Syrians, are doing so to evade payment of the normal salaries. As to the education sector, the Minister went on to say: “We are not against cultural and academic interaction nor against recruiting non-Lebanese university professors, however, they have to observe a certain ratio.” He revealed that some 250 foreign professors are currently hired at the American University of Beirut and some 126 Egyptians at the Arab Beirut University. “The Lebanese,” Azzi noted, “are responsible for the present situation, as they tend to choose the easy option of emigration instead of looking for job opportunities in Lebanon.” In an answer to a question on the new grades and salaries scales, Azzi said that wage increases are crucial given the worsening living conditions, adding: “the decision on this matter is now in the hands of Parliament”. (Al Diyar, 27 March 2015)

Al Diyar newspaper featured the cultivation of thyme in Lebanon, while interviewing President of Green Hand association, Agricultural Engineer, Zaher Radwan, in Mount Lebanon town of Aley, members and President of Beekeepers Cooperative of Higher Matn Area, Engineer Saad Hilal and Abdel Nasser Masri, respectively. Radwan noted that thyme growing is considered a profitable alternative agriculture generating surplus revenues for land owners, adding that thyme yields considerable proceeds from the first year, unlike other trees such as pine trees that start paying off after 15 years from cultivation. He added: “One acre of land can accommodate some 4000 thyme seedlings with production reaching approximately 120 kgs in the first year, 270 kgs in the following year and 500 kgs in the third year while remaining at that level of production for the next seven consecutive years. He pointed out that thyme planting is a very good source of income for growers. “The wholesale price of one kilogram stands at LBP 15000 and may even reaches LBP 35000 without added blends, and as high as LBP 50000 LP with special added blends. Moreover, this crop which is known for its resistance to diseases, does not need much care or to be treated with pesticides. Hilal, on his part, explained that the cultivation of thyme started after that special vegetation for roaming bees became scarce and particularly after Lebanese thyme gained notoriety around the globe. “Data indicates that Lebanon exports nearly 60 tons of thyme each year,” Hilal said, adding, “that no matter how big the size of production there will always be sufficient demand for thyme. For his part, Masri concluded by saying: “Besides its medicinal and nutritional values, beekeepers consider the thyme crop as a valuable product because of it is edible for both man and bees.” (Al Diyar, 7 March 2015)

Agricultural trade unions urged the government to facilitate the access of Syrian farm workers into the country in order to save the agricultural sector in the absence of Lebanese workforce. This urgent demand was voiced during a meeting held in Zahleh, in the presence of the Head of the Potato Farmers Union in Beqaa, George Al Saqr and President of the Beqaa Farmers Association, Ibrahim Tarshishi and a number of farmers and agricultural entrepreneurs. One farmer, Nadim Abu Naameh, informed As Safir newspaper, that he have been chasing paperwork for one whole month to no avail, visiting Public Security offices across Lebanon,  Marjeyoun, Nabatiyeh, Hermel and Baalbek, in order to issue work permits of 21 Syrians who have worked for him for years. “Syrians who have been working for years in Lebanon and supporting agriculture sector are now no longer welcomed. This is what we understand from the new measures of the government,” he said. He indicated that the high season for Syrian labor normally starts in mid-February and lasts until late November of each year. To this effect, Al Saqr read a statement addressed to Prime Minister, Tammam Salam and Agriculture and Labor Ministers, Akram Chehayeb, and Sajaan Azzi stating that the recent restrictive government measures regulating the entry of Syrians into Lebanon are destroying the agriculture sector in the country. He also put forward a number of demands namely: facilitation and streamlining of procedures, allowing Syrian agro workers bring along their families, wavering all requirements related to health insurance and work conditions, and the canceling of residence fees which all adversely affect the cost of production. Saqr pledged that Lebanese farmers are willing to take full responsibility towards any threats to public security that may result from recruiting Syrian labor. Finally, he requested an urgent meeting with the Public Security Director General, Abbas Ibrahim to this effect. (As Safir, 20 March 2015)

Small and medium enterprises (SMEs) constitute the largest part of the private sector in Lebanon which is presently facing serious difficulties in accessing commercial financing. In this respect, Kafalat provides financial assistance to SMEs to start up innovative projects in any of the five targeted economic sectors, namely, industry, tourism, agriculture, high technology and traditional crafts. The institution which is a private company of public interest and is owned by the National Institute for Guarantee of Deposits (75%) and 41 Lebanese banks (25%), provides financial guarantees for loans from banks operating in Lebanon. According to CEO and General Director of Kafalat, Khater Abu Habib, loans guaranteed by Kafalat benefit from a Central Bank exemption of the statutory reserve requirement.  This significantly reduces the lending bank's cost of capital, allowing lending at lower interest rates. Interest rate subsidies are financed by the Lebanese Ministry of Finance and administered by the Central Bank. Regarding the procedures for benefiting from Kafalat, Abu Habib clarified that the approval of loans is based on the submission of a feasibility studies/ business plans that determine the viability of the business to be financed. The company then studies the files sent through the banks and decide accordingly. However, the final decision for granting the loan rests in the hands of the banking institutions, he said. Besides the original lending facility launched in 2000 and which offers loans of LBP 300 million to assist start-ups and existing businesses to develop their ideas or activities, there are new programs that were the outcome of the partnership between the European Union and the Ministry of Economy and Trade. Among these new facilities are the following: loans to ensure the continuity of the existing production and workforce and amounting to LBP 600 million; loans to finance innovative works and inventions at the level of LBP 300 million; loans of up to LBP 650 million for investment in fixed assets and working capital needs, and, finally, loans granted for agriculture-related activities and for investment in efficient energy use and renewable energy. (Al Diyar, 7 March 2015)

In the midst of economic difficulties that faced Lebanon last year as a result of the precarious regional situation, the year 2015 seems to be wavering, and reporting both positive and negative economic swings. From the positive side, the total number of tourists entering the country grew by 22.6% in last January compared to the same month in 2014. According to the Research and Studies Department statistics, some 90,784 visitors entered Lebanon last month, compared to 74,000 tourists for the same month of the past year. On the other hand, the weekly economic report issued by Credit Libanais on MENA job index and the Lebanon market, showed that 27% of surveyed employers said they were optimistic about prospects for recruitment in the next three month period, which is the same rate as for the previous survey. Furthermore, companies intending to recruit during the period from February 2015 to February 2016 accounted for 31% against 24% indicated in the past survey. The entrepreneurship sector is also apparently keen on recruiting where 27% of respondents are on the lookout for fresh graduates in the field of business administration, 23% for engineers and 22% for graduates in commerce.
On the negative side, the balance of trade for the first month of 2015, has recorded a deficit of USD one billion and 91 million, according to foreign trade statistics. This apparently resulted from the large imbalance between the imports bill of January 2015 which stood at USD one billion and 341 million and the USD 250 million in exports. As such, the total value of imports dropped 28% from USD one billion and 873 million in January 2014 with total exports slightly increasing by 3% from USD 244 million. The inflow of foreign remittances and capital on the other hand witnessed a huge decline in 2014. This notwithstanding, the Association of Banks in Lebanon said that there was no need for panic despite instable forecasts. (Al Hayat, Al Diyar, As Safir, 24 February 2014)

For the first time in more than 10 years, the inflow of foreign remittances to Lebanon witnessed a large decline during last year. Thus total foreign remittances recorded a drop to USD14.5 billion in 2014 from USD16.1 billion in 2013, which amounts to a decline of USD1.6 billion representing 9.9%. In an interview with Al Diyar newspaper, the President of the Association of Banks ABL, Francois Bassil, said that the decline was not huge given the historical performance of remittances which are difficult to forecast depending on the situation in source countries, as well as the prevailing conditions in Lebanon. Bassil disclosed that Lebanese expatriates normally are pumping about USD 7 billion a year which is equivalent to 17% of the GDP, thus making Lebanon the largest recipient of remittances in the Middle East and North Africa. He pointed out that these inflows reflect positively on Lebanon’s economy for a number of reasons, notably since they contribute to an increase in the level of domestic consumption and expenditure and play an important role in maintaining the balance of public debt. They also cover a significant part of the deficit in the balance of trade. One of the reasons for the above decline, according to ABL President, is that that the majority of European countries are going through economic difficulties, and that Euro zone economy is in recession, thus pushing doe the price of the Euro currency. This in turn, he added, negatively affected the Lebanese expatriates’ remittance inflows. He revealed that the political and security turmoil in the country and region prompted families to migrate which stopped the inflow of remittances which otherwise would have been destined to them. Nevertheless, he appealed to Lebanese not to be too much concerned about the fall in remittances, while pointing out that a more serious area of concern is the precarious security and political situation presently prevailing in Lebanon. (Al Diyar, February 17 2015)

This is the second part of the summary of the survey focusing on Lebanese attitude to budgeting and expenditures which we covered last week under the title “Lebanese Women are more effective than men in managing their monthly budget”, focusing this time on social rights. The survey showed that 32% of the Lebanese under 60 and who have not reached retirement age, are unaware of the importance of old age planning. Figures revealed that women are behind men, by 36% to 72%. Also, some 69% of respondents are unfamiliar with the fact that the Social Security does not include a retirement income, and 41% do not know the difference between end of service indemnity fund offered by the Social Security and the pension plan. As for planning for the future of children, the survey found that while 50% of Lebanese families are able to prepare to financially cover their children’s studies, 13% have resort to savings and 17% use their investments, while 17% do not carry out any planning. It also uncovered that against 47% of the Lebanese who do not attempt to save money, there are 53% who do so. Again 39% of the Lebanese plan their expenditures on a weekly basis against 11% who keep a 6-month planning. On the management of money and decision making side, the survey demonstrated three cases: In the first, the decision is individual in 31% of cases, whereby men are the decision maker in 50% of the cases against 16% for women. The second case, shows the involvement of the couple in 10%, of the cases noting that women more than men tend to consult their partners to make the decision together, (14% of women against 5%.of men). In the third case, the decision is up to one partner in 9% of the cases, and whereby women rely more on their spouses (16% as opposed to 1% or less for men). Regarding health insurance, the study showed that 22% of the Lebanese people are health insured by private companies; 30% of which are employers or entrepreneurs while 29% are wage workers. Tendency to get health insurance increases notably with high income, raising from 20% in average income to 40% for high income people. (Al Diyar, February 1, 2015)