World Food Programme ups aid to Lebanon to $5.4bn over three years


Jamie Prentis
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  • Arabic

The World Food Programme will give $5.4 billion in aid over the next three years to Lebanon, which is grappling with a devastating economic crisis that has plunged much of the population into poverty.

The announcement came after a meeting between caretaker Prime Minister Najib Mikati and the WFP’s Lebanon office representative Abdallah Alwardat.

Mr Alwardat said the aid would be extended to about one million Lebanese and one million Syrian refugees.

Mr Mikati said the aid should be "divided equally between the Lebanese and the Syrian refugees".

Lebanon, which is heavily reliant on imports, has a population of about six million, including more than one million Syrian refugees who have fled their country’s civil war over the past decade and live in poverty. Meanwhile, Lebanon's first cholera outbreak in three decades has hit Syrian refugee camps in border areas particularly hard.

The WFP once allocated $700 million in food assistance to Lebanon every year, and upped that to $1.3 billion in 2022. Its assistance has included aid to children and farmers. Now, it has set aside $5.4 billion for the 2023-2025 period, Mr Mikati said.

“I also [insisted] that the products purchased for the purpose of food aid be entirely from Lebanon and I was promised that this would happen,” he said after meeting Mr Alwardat.

Mr Mikati said the increase in food aid to Lebanon came after the recent meeting of the WFP’s executive board in Rome.

An economic crisis that first became apparent in 2019 has led the local currency to plunge in value by more than 95 per cent and food costs have soared. More than 80 per cent of people in Lebanon now live in poverty.

There are also widespread shortages of clean water, bread, electricity, medicines and other basic supplies.

There are fears that a governance vacuum, with MPs failing to agree on a successor to former president Michel Aoun and Mr Mikati unable to form a new government for months, will only exacerbate the crisis further.

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How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal. 

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.” 

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

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France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

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Updated: November 21, 2022, 3:37 PM