The German government-owned KfW Development Bank signed with Majmoua and Vitas Lebanon sal, two Lebanese microfinance institutions (MFIs), a €20m support package that aims to finance small- and medium-sized enterprises (SMEs) in Lebanon. It said that the funding will be channeled directly through Al Majmoua and Vitas Lebanon the two MFIs in order to extend financing to SMEs.  Further, it noted that the initiative reflects the joint efforts of Germany and the European Union to address a critical need of the Lebanese private sector by expanding access to credit for small-scale entrepreneurs, while also reinforcing the capacity of local MFIs to serve as effective conduits to finance local SMEs. It said that it will earmark €10m out of the €20m package to promote green investments, which will help businesses reduce energy costs and will contribute to the reduction of Lebanon's carbon footprint.  KfW's financial commitments to Lebanon reached €156m in 2024. It allocated €49.3m to social infrastructure and services, which accounted for 31.5% of the total, followed by €48m to the education sector (30.7%), €21m to the water and sanitation industry (13.4%), €18m to the government and civil society (11.5%), and €20m to other sectors (12.8%).  Established in 1997, Al Majmoua is a Lebanese non-profit MFI that focuses on supporting micro-entrepreneurs, particularly females, in developing sustainable businesses across Lebanon. It also invests in capacity-building and training programs. Its figures show that the number of its active clients reached 22,997 in 2024 compared to 26,090 in 2023, 30,140 in 2022 and 37,401 in 2024. It said that its outstanding loan portfolio stood at $9m in 2024 relative to $6.2m in 2023, $3.4m in 2022 and $2.9m in 2021. Further, it noted that it disbursed $15.2m across 23,209 loans in 2024 compared to $10.6m through 26,574 loans in 2023, $6m covering 22,537 loans in 2022, and $5.4m across 21,487 loans in 2021. Also, it pointed out that 32% of its clients reside in Mount Lebanon, 29% of its customers live in the Bekaa, 26% are located in the South, 9% reside in the North, and 4% live in Beirut. It stated that the services sector accounts for 44% of its client base, followed by the trade industry with 28%, the manufacturing sector with 12%, the agriculture industry with 10%, and the construction sector with 6%. It added that 64.8% of its clients are micro-entrepreneurs.  Established in 1999, Vitas Lebanon sal, part of the Vitas Group, is a non-profit microfinance institution that provides financial solutions to small businesses and individuals. In its latest annual report for the 2021-22 period, Vitas indicated that it supported more than one million clients and disbursed more than $3.3bn in loans in five countries since 2004. It said that it had 84,826 active clients and its outstanding loan portfolio amounted to $251m in Lebanon, Egypt and Iraq in 2021. (ICE BEIRUT)

Fonte notizia: Byblos Bank 17-22 Nov 2025