Lebanon—Trade and Investment Facilitation (TIF) Activity

With a free-market economy and a strong laissez-faire commercial tradition, Lebanon was, until recent years, a regional epicenter for commerce, banking, and innovation. Now deeply mired in a political and financial crisis, the country needs a new direction and assistance to revitalize the economy, restart financial and export markets, facilitate policy change, and drive new investments that will bring in foreign exchange and improve global competitiveness.

The Trade and Investment Facilitation (TIF) activity, funded by the U.S. Agency for International Development (USAID) boosts the exports of Lebanese goods and services, facilitates investment in Lebanese enterprises, and improves the business-enabling environment in Lebanon.

TIF focuses on the agrofood processing, manufacturing, knowledge economy and services, tourism and hospitality sectors. TIF has facilitated the export of $139.8 million in goods and services, supported the creation of 1,598 new jobs, and assisted 770 Lebanese enterprises in improving their products and processes to meet international standards.

Sample Activities

• Co-create sector strategies and action plans.
• Transition core partners into a network that can act as a lasting structure to mobilize private-sector resources and offer fee-based services.
• Diversify and expand market access and networks through trade events; buyer missions; end-market presence and sales agents; and branding and marketing.
• Build the capacity of trade support institutions and service providers.
• Jumpstart investment with pipeline deals and continued investment advisory.
• Develop specialized nonbank financial products appropriate to export firms.

Select Results

• Provided technical assistance and market access support, enabling Lebanese producers to meet international food safety standards and export to new markets.
• Worked with manufacturers to optimize production processes, leading to improved product quality and increased export capacity. Through partnerships, TIF also facilitated investment in renewable energy projects, contributing to a more sustainable energy consumption.
• Supported IT and creative industries, helping companies expand their digital offerings and tap into global markets.
• Helped create destination management organizations in seven regions, enhancing Lebanon’s appeal as a destination, developing rural economic growth, and paved the way for vertical and horizontal business linkages among the stakeholders.
• Supported the creation of a $20 million Energy Fund that has demonstrated success in boosting productivity and reducing production costs of participating entities, leading to tangible benefits.
• Launched a program that equipped 100 businesses to strengthen their environmental, social, and governance posture, making them more attractive to investors and unlocking new revenue streams.
• Launched a new factoring and reverse factoring mechanism, a first in Lebanon. This financial tool is intended to enhance liquidity and facilitate trade by providing revolving short-term credit lines worth up to $20 million to strategic industries.
• Facilitated $56.4 million in closed investments across various sectors, contributing to business expansion, job creation, increased export capacity, and provided transaction advisory support to 56 firms to enhance their investment readiness and growth potential.
• Collaborated with more than six business organizations to develop 36 policy briefs and regulations addressing trade, agriculture, and innovation, in addition to engaging 134 business entities to prioritize reforms.
• Partnered with various organizations to review and amend laws on competition, mergers, tariff codes, and small firms, and developed new laws and guidelines for sectors such as tourism and energy.
• Developed statutes and bylaws for destination management organizations to aid their registration and conducted risk/reward analyses to suggest improvements to laws in the energy sector.
• Produced more than 31 thematic reports on issues such as circular agriculture and sustainable business growth.