Review of the activities of the Private Sector Development Programme in Lebanon

Small and medium-sized enterprises (SMEs) are a major source of job creation in Lebanon and are key actors in the country’s development. However, their activity can be hindered by constraints throughout the value chain, from sourcing to sales.

Consequently, the PSD Programme aims to strengthen SMEs and their competitiveness through financial and technical assistance. Two sectors are specifically targeted: wood processing in the Tripoli region (component 1), and agribusiness (cherries and table grapes) on the Bekaa plain and in the Akkar region (component 2).

The Reach-Out Event on 7 December gave Expertise France and its partners – BIAT and the Chamber of Commerce, Industry and Agriculture of Zahlé – the opportunity to present the activities implemented in the context of the three components of this programme.

Strengthening SMEs and creating synergies within the same sector

The project has implemented an inclusive methodology starting with the identification of actors and their needs in terms of competitiveness, in order to subsequently derive appropriate actions from them.

A mapping was consequently conducted for the two thematic components to identify the main actors in the sector – furniture producers on the one hand, and table grape and cherry producers, on the other hand – and their needs.

Additional studies have also been conducted. In the context of the “Wood Processing” component, a study on the furniture distribution sector highlighted trends on the Lebanese market, with the aim of allowing SMEs to better position themselves. For the “Agribusiness” component, special attention was also paid to the results of a post-harvest diagnostic of the sector. These results have made it possible to identify areas for improving the post-harvest sector of the cherry and table grape industry.

Following on from this, capacity building actions were set up for SMEs. Consequently, in the “Agribusiness” sector, training sessions were conducted on solutions to combat the Mediterranean fruit fly and on the size of vines, while the sessions for the “Wood Processing” sector focused on management and marketing.

Other actions undertaken aim to support private sector development. Fady Gemayel, President of the Association of Lebanese Industrialists (ALI) with which an MoU was signed on 13 October 2017, came back on issues related to the integrated platform, which will be set up in the context of the wood processing sector: this platform will be a meeting point between designers and wood suppliers and will provide a range of services aiming to facilitate the development of new products (training, meeting place, provision of equipment and materials, showroom).

Improving access to financing

The third cross-cutting component of the programme aims to facilitate access to financing for SMEs. The non-financial approach as a whole was presented, as well as the financial arrangement which will allow Lebanese commercial banks to allocate subsidised loans to the financial beneficiaries of the programme. 

The PSD Programme was launched in February 2016 and will continue its activities until September 2019.