Lebanon and World Bank sign $150m loan deal to support digital transformation

On Monday, Lebanon and the World Bank signed a $150 million loan deal to support the country's digital transformation efforts. The Digital Acceleration Project aims to improve access to government services for Lebanese citizens, who currently rely primarily on paper services or visiting ministries for assistance. According to the World Bank, the loan will enhance public service delivery through digital platforms and data capabilities.

The deal was signed in Beirut by the World Bank's new regional director, Dalia Khalifa, and Lebanese Minister of Finance Yassine Jaber. Jaber emphasized that digital transformation is crucial for modernizing the public sector and improving service efficiency. In 2022, Lebanon appointed Kamal Shehadi, a Harvard-educated economist, as its first Minister of Technology and Artificial Intelligence to promote digital transformation.

The $150 million loan was approved by World Bank directors in January. Lebanon is currently experiencing the latest conflict between Israel and Hezbollah, as well as the aftermath of a severe economic crisis in 2019, which the World Bank deemed one of the worst in modern history. The country's state infrastructure, including telecoms, internet services, water, and energy networks, is in poor condition and requires significant investment and upgrading.

Lebanon's reconstruction costs were estimated at $11 billion last year. Prime Minister Nawaf Salam has stated that Lebanon remains committed to reaching an agreement with the International Monetary Fund, despite failing to meet the necessary reforms in 2022. The IMF currently focuses on managing the conflict's economic impact and implementing a medium-term fiscal strategy.

The World Bank highlighted that the project will provide secure and efficient infrastructure for hosting government data and invest in Lebanon's overall cybersecurity.