Lebanese microfinance company Vitas Lebanon has launched a new youth enterprise focused initiative in partnership with regional social initiative Silatech.

Designed to help finance youth-run businesses, the initiative includes the introduction of a new dedicated youth start-up loan product called “Taasis” as well as an outreach effort to finance more existing youth enterprises. This initiative is expected to create or sustain 2,400 youth jobs over a three-year period.

The Taasis (“Founding” or “Establishment”) loan provides young entrepreneurs with loans averaging  $5,000 for financing for their start-up businesses. In addition Vitas Lebanon will seek to provide existing youth enterprises with loans averaging $2,000 to finance their expansion.

In parallel with providing financing, Vitas with the support of Silatech, will also provide business skills training to the youth and launch a business plan competition to raise awareness of entrepreneurship and generate successful business ideas which they can then finance.

In June 2015, Silatech conducted a two-day “training of trainers” workshop in Beirut for Vitas Lebanon credit officers outlining approaches and communication techniques for effectively targeting youth clients, and advising on more accurate and relevant criteria to use when screening loan applicants.

At 30 per cent, unemployment among young Arab men and women is the highest in the world. Youth unemployment in Lebanon is somewhat lower, at 21 per cent, though still markedly higher than the global average of 13 per cent.

Silatech’s support to Vitas Lebanon is part of a broader programme across the region, which includes the design and launch of youth friendly financial products with microfinance institutions (MFIs) in multiple countries. This year will see new youth focused products and initiatives launched by MFIs in Lebanon, Jordan, Iraq, Egypt, Tunisia, Sudan and Morocco.

Mohammed Al Naimi, acting CEO of Silatech, said: “In the fight against youth unemployment in the region, youth enterprise is becoming one key solution. Working with established and experienced partners such as Vitas Lebanon is essential in order to understand the needs of young people and design interventions that enable them to start and grow businesses which create jobs for themselves and others.

Ziad Halaby, general manager of Vitas Lebanon, said: “This cooperation between Vitas and Silatech comes at a critical time, as Lebanon’s unemployment rate has been increasing drastically over the past couple of years.”

“Introducing a specialised youth enterprise loan product aims to create job opportunities for the younger generation and to support existing local microentrepreneurs. This initiative is expected to help create or sustain over 2400 youth jobs throughout Lebanon,” he added. – TradeArabia News Service