USAID LIFE RFA #9

Project Description

The Livelihoods and Inclusive Finance Expansion (LIFE) Project is a 5-year project funded by the United States Agency for International Development (USAID) and implemented by Palladium. The purpose of LIFE is to improve economic opportunities and livelihoods low income individuals and microenterprises by expanding their business skills and access to a broad range of financial services that will improve their resilience and potential to scale up economic activities. The project is comprised of three components: Component 1) improve in the business enabling environment for inclusive finance through supporting policy development and institutional shifts that facilitate expansion of the financial sector to under-served and unbanked communities; Component 2) strengthen the supply of financial services through working with microfinance institutions, non-bank financial institutions, and commercial banks to expand and tailor products for low income un-banked market segments; and Component 3) strengthen the demand for financial services through supporting small businesses and entrepreneurs to expand.  The LIFE project is particularly focused on expanding financial services, financial literacy, and business skills training to women, youth, and other disenfranchised communities in peri-urban and rural areas across Lebanon.

Funding Opportunity Statement

The LIFE project invites Lebanese-owned commercial banks to propose grant investments that support greater financial inclusion in Lebanon.This funding opportunity is aligned with the Banque Du Liban (BDL) Financial Inclusion Strategy, published in April 2017 and its broad objective to increase financial inclusion and financial literacy as a significant component of sustainable economic development, financial security, and resilience for all Lebanese.

Implementation of the Financial Inclusion Strategy will be informed and supported by investment in financial inclusion by Lebanese financial institutions as both a sustainable business decision and a social priority. 

The aspects that are most relevant for co-investment from the LIFE project and commercial banks include the provision of a full spectrum of financial products and services for low-income and unbanked populations, increasing financial literacy and understanding of personal/household financial management, and increasing rates of people accessing and using financial products and services in Lebanon with an emphasis on unbanked women.

As such, LIFE will award grants that co-invest with Lebanese Commercial Banks to further these priorities and implementation of the BDS Strategy for Inclusive Finance. Illustrative activities that can be supported through this RFA include:

1. Increase access to savings for unbanked populations especially women in peri-urban and rural communities
2. Increase the debit card/credit card penetration
3. Increase cashless-society/digital products tailored for low income market segments
4. Increase availability and use of ATM/ITM machines in rural and peri-urban communities
5. Increased usage of digital payment platforms for routine payments and purchases.
6. Provide financial literacy and financial education for new clients and unbanked populations
7. Address underlying perceptions and behaviors that inhibit access for the ‘unbanked’ to Commercial Banks.
8. Other interventions that support the broad objectives of the BDL Financial Inclusion Strategy