LEBANON - Kafalat, a Lebanese institution that provides financing support to small and medium-sized businesses, has launched a $47.6 million direct loan program for eligible agri-food businesses and rural agri-tourism value chains, with the initiative expected to benefit around 390 enterprises.
The program is part of the Green Agri-Food Transformation for Economic Recovery (GATE) project, which is funded through a $200 million loan from the World Bank. It aims to improve access to finance for businesses in Lebanon’s agricultural and food sectors while supporting investment and economic activity in rural areas.
Loans of Up to $400,000
Under the new program, eligible businesses can access loans from below $100,000 up to $400,000.
The financing targets businesses operating across agri-food and rural agri-tourism value chains, providing funding for enterprises seeking to invest in their activities and strengthen their operations.
The program comes as Lebanon’s agricultural and food sectors continue to play a significant role in household incomes and the wider economy. One in five households relies on agri-food activities for income, while Lebanon continues to import around 80 percent of its food.
At the same time, the country has more than $450 million in untapped export potential, pointing to opportunities for local producers and businesses to expand production and reach international markets.
GATE Goes Beyond Loans
The GATE project extends beyond financing for businesses, combining loans with grants and other forms of support aimed at strengthening agricultural and rural value chains.
Its components include co-financed grants for climate-smart agriculture, rural infrastructure, irrigation and water projects. The project also provides support for agricultural extension services, food safety and export development.
These measures are intended to help farmers and agricultural businesses improve productivity, strengthen resilience and adopt practices that can reduce production costs and environmental pressures.
Support for Climate-Smart Agriculture
The project’s co-financed grant component provides up to $5,000 for individual farmers and up to $35,000 for cooperatives and farmer groups.
The grants can be used to adopt climate-smart technologies and practices, including solar energy, improved soil management and organic farming.
By combining direct business financing with grants and technical support, GATE aims to address different investment needs across Lebanon’s agricultural sector.
The initiative is also designed to strengthen rural economic activity and improve the capacity of local producers to meet domestic demand and develop export opportunities, at a time when Lebanon remains heavily dependent on food imports.
