Tag: Plastic Recycling Machines

As Lebanon battles ongoing economic devastation, billionaire businessman Bahaa Hariri has openly backed a civic plan for the country’s path to recovery.

Hariri, son of assassinated Lebanese Prime Minister Rafik Hariri, told Arabian Business he is backing Sawa Li Lubnan (Sawa) – a group that is mobilising citizens to campaign for meaningful reform in Lebanon to crush corruption and deliver economic prosperity.

Hariri, who has thus far steered away from politics – unlike his brother Saad who was the country’s PM until the 2019-2020 protests – quashes reports that he is angling to become the country’s next prime minister.

“Political office is not for me,” the 55-year-old construction magnate said, adding that Sawa is “working independently” for change.

Sawa’s grassroots movement aims to create a non-sectarian system, end corruption, restore economic growth, empower a new generation of leaders, strengthen the legal system and restore sovereignty.

The group has 20 full-time staff and an advisory board of 20 peers, as well as a network of 200 volunteers across eight Lebanese regions. Sawa represents all regions and religious affiliations and brings together industry experts from diverse backgrounds.

According to Sawa’s agenda materials, Lebanon is in “economic freefall” and “if we dodge the fundamental issues that have led us to this disaster, Lebanon and our children’s futures will be destroyed”.

Reversing economic collapse
“The economy has completely collapsed… this is the worst crisis Lebanon has faced in 160 years,” Hariri said. “Something has to be done to try and make a change.”

According to the latest World Bank Lebanon Economic Monitor (LEM), the economic and financial crisis is likely to rank in the top ten, possibly top three, most severe crises episodes globally since the mid-nineteenth century.

“In the face of colossal challenges, continuous policy inaction and the absence of a fully functioning executive authority threaten already dire socio-economic conditions and a fragile social peace with no clear turning point in the horizon,” the report notes.

Lebanon’s GDP plummeted from close to $55 billion in 2018 to an estimated $33bn in 2020, while GDP per capita fell by around 40 percent in dollar terms, said the World Bank. The effect on prices have resulted in surging inflation, averaging 84.3 percent in 2020.

“Sawa is not a political party… there are enough of those,” said Hariri. “We are a social movement that is unequivocally calling out the political problems and demanding solutions.”

The businessman said Sawa would be carrying out its advocacy on television, social media and in real life communities.

Crushing corruption
Hariri said stamping out corruption is his first priority.

“We need to reach by consensus across the board to crush corruption… it’s endemic and it’s killing the private and public sector. To gain a thriving economy we need to address many points such as debt restructuring and a single convertible exchange rate.”

The international businessman recommended revisiting the implementation of the Tiaf Accord – an agreement that provided the basis for ending Lebanon’s civil war in 1989. “It’s part of the Lebanese constitution and we need to separate religion from politics. We need change now.”

Hariri, who has been based in London for 37 years, said that Lebanon’s significant international diaspora “would not accept any international band aid”.

“They need to seriously change to take Lebanon seriously… they are not willing to invest anymore,” he said.

“A lot of work has to be done across our board which is cross-sectarian. There is no other way. Lebanon is like a mosaic.”

An accomplished businessman, Hariri founded Horizon Group Holdings in 2002, a property investment and development company, with operations in Lebanon, Jordan and Saudi Arabia.

Hariri sold his stake in family-owned construction company Saudi Oger to Saad in 2008.

Source:https://www.arabianbusiness.com/politics-economics/465602-can-lebanons-economic-ruin-be-reversed-bahaa-hariri-is-counting-on-it

Amidst an increasingly turbulent year, a ray of hope has shone on Lebanon in the form of an influx of expats and tourists benefiting from the collapsed exchange rate, where the lira has lost close to 80 percent of its value, making the country incredibly appealing for those with dollars to spend.

This hope may be short lived, though, as mounting operational challenges overshadow the positive economic impact created by those summer visitors’ spending, F&B and hotel operators told Arabian Business.

Lebanese expats constitute the majority of visitors to the country this season, especially since many had been unable to visit their home country for over a year due to coronavirus restrictions. An estimated 450,000 Lebanese residing in the GCC and Africa have visited Lebanon so far this summer, president of the Lebanese Hotels Association Pierre Achkar told the Kuwait News Agency.

“Those who did not visit Lebanon last year because of Covid-19 came this year and are benefiting from the exchange rate,” said Toni Rizk, CEO of hospitality management company TRI Concepts.

“Although we are increasing our prices (which are in Lebanese lira as per the country’s law) to match the dollar exchange rate, we are still retaining our customers since they find it cheaper than other vacation destinations. If it were not for those expats, we would not have been able to survive the season,” he continued.

Lebanon is facing its worst economic and financial crisis in decades with the lira losing over 90 percent of its value, currently at LL17,850 to the dollar and with fuel shortages and power cuts lasting up to 21-hours-a-day as privately-owned generators are unable to keep up with the demand.

But visitors to Lebanon seem largely undeterred by the dismal situation, instead benefiting from the currency devaluation to enjoy a reasonably-priced vacation.

“At the onset, the hospitality business in general felt that this season would be a good one despite the overall economic downturn. Things picked up well and reservations were up,” said Michel Abchi, chairman and CEO of Admic Sal, a multi-format retail operator based in Lebanon.

“Aside from the expats, many tourists – some having been to Lebanon before – decided to visit the country this summer. They were lured by the easing or lifting of Covid-19 restrictions and the currency devaluation which made the country’s main tourist attractions, beaches, bars, and restaurants more accessible and affordable” he explained.

Meals in Lebanon’s fanciest restaurants go for little more than $15 per person nowadays, alcohol included.

Visitors from Iraq, Jordan and Egypt are among the main tourists to Lebanon this year, said hospitality operators Arabian Business spoke to.

“Egyptians who would have normally summered in their country’s North Coast are opting to visit Lebanon because it’s become very cheap for them,” said Rizk.

“We have Lebanese expats and long-stayers but we also have European and Arab tourists, a bit of everything. Some of those are coming to the weddings of their Lebanese friends and taking this as an opportunity to explore the country,” said Christine Ozeir, owner of Bossa Nova Beirut Hotel.

“Despite the challenges, we are seeing a very good summer season and many expats who usually would stay with their families when visiting Lebanon are now opting for hotels because we can secure 24-hours electricity,” she continued.

Close to 700,000 of those residing in Lebanon and who are unable to travel abroad have opted for staycations in the country, thereby increasing hotel occupancy rates, according to Achkar.

As conditions worsen in the country, however, hospitality operators are beginning to feel the pinch.

“Things started to take a downhill turn with the increased electricity shortage, the fuel and petrol disappearing from the stations. It has negatively impacted the positive vibe that existed and now many hospitality operators are faced with total shut down for hours due to lack of electricity,” said Abchi.

“There are also many expats and tourists who are deterred by the lack of medicine and perceived lack of stability in the country and are deciding not to visit Lebanon,” added Ozeir.

Despite the increase in visitor numbers, hospitality operators are also struggling financially, given the mounting expenses and challenges they are facing.

Although Rizk’s venues have a bigger turnover than last year, the currency devaluation means he is making less revenue now, he revealed. “We are making small margins but at least we are making some money and are able to pay our employees,” said Rizk.

“The increase in activity comes with many challenges, mainly the energy situation in terms of securing diesel for generators and fuel for cars,” said Ozeir.

“Our main challenge is securing everything we need for the comfort of our guests. These are people who are coming here for vacation so we cannot transmit the worries of the country to them,” she explained.

Source:https://www.arabianbusiness.com/industries/travel-hospitality/466598-is-summer-tourism-the-salvation-for-lebanons-hospitality-operators

Egypt has agreed to supply natural-gas to Lebanon through Jordan and Syria as the Arab states seek to help end power shortages in their crisis-ridden neighbour.

Energy ministers from the four countries agreed during a meeting in Jordan on Wednesday to work out details of a plan to resume Egyptian gas shipments and Jordanian power to Lebanon. The gas will help feed the Deir Ammar power plant in Lebanon, which has a capacity of 450 megawatts, Egypt’s oil ministry said in a statement.

The agreement could help cut Lebanon’s need for the fuel that Iran had promised to ship to Lebanon last month. Dorothy Shea, the US Ambassador in Lebanon, later told Al Arabiya that the US was in talks with Egypt, Jordan and the World Bank to find sustainable solutions to Lebanon’s energy needs. The country has been experiencing worsening power outages amid dire economic and political crises.

Agreements covering the transit of fuel through the countries will be revised within the next three weeks, said Jordanian energy minister Hala Zawati at a press conference in Amman on Wednesday.

The Arab Gas Pipeline previously transported Egyptian gas to Lebanon via Jordan and Syria, but rising domestic demand crimped Egypt’s exports before a series of attacks on the line in war-torn Syria shuttered that route for gas to Lebanon completely about a decade ago.

The pipeline will need to be fixed before it can be used again, said Syrian Oil Minister Bassam Tohme after the meeting. Each state will send technical teams to inspect the pipeline over the next few weeks, he said.

While US sanctions on Syria remain in place, Jordan’s King Abdullah II discussed plans to reopen the pipeline with President Joe Biden on a visit to the White House in July, said Zawati.

Lebanon is working with the World Bank to secure guarantees to cover payments for the gas, said Lebanon’s Energy Minister Raymond Ghajar.

Source:https://www.arabianbusiness.com/industries/energy/468192-arab-states-agree-to-supply-gas-to-energy-hungry-lebanon

A bit of stability and normality – that’s all Lebanon’s private sector is asking for from the new government formed last week after a year of sectarian squabbling over cabinet seats.

“We’re not asking for much,” said Mirielle Korab-Abi Nasr, vice president of the Real Estate Developers Association in Lebanon (REDAL).

The caretaker government over the last year had little ability to pass laws or introduce legislation. Tycoon-turned-Prime Minister Najib Mikati will head the new 24-minister cabinet that will try to pull Lebanon out of worsening economic collapse and will try to kick-start talks with the International Monetary Forum for a badly needed bailout.

In the last year, the economy has deteriorated, joblessness is rising still, businesses have shuttered permanently, and the currency has lost over 90 percent of its value. An estimated 82 percent of the population has been plunged below the poverty line, according to UN figures released this month.

In the last month, more businesses have been forced to close as they couldn’t secure diesel to fuel privately owned generators that for years have plugged the gap that state-provided electricity failed to fill.

In a country where the government’s approach to the private sector can be seen as apathetic as best and a hindrance at worst, Lebanon’s competitiveness rating is 88th out of 141 countries in 2019’s Global Competitiveness Index.

Lebanon’s private sector, despite the government that reins over it, has done its best to thrive.

“Don’t hold us back,” Korab-Abi Nasr said, about the private sector, known for its innovativeness.

But those in the private sector know this government isn’t the answer to their many problems.

Arabian Business asked one analyst if the recent government formation signalled a bright spot for the private sector or if the sector would have to pull itself up by its bootstraps, as has been the case for years?

Lebanon’s private sector calls for ‘stability and normality’ amid ongoing crisisMirielle Korab-Abi Nasr, vice president of the Real Estate Developers Association in Lebanon (REDAL).
“Well, I mean, the latter is obviously going to be the case,” said Sami Halabi, the director of policy and co-founder of Triangle, a development, policy and media consulting firm.

The private sector’s structure is intrinsically linked to Lebanon’s sectarian system that is blamed for the country’s woes as it creates and relies on patronage networks to survive.

“And I don’t think that Mikati or anybody else in the government is going to address those shortcomings to open space for [the] private sector to be more competitive or allow new players to enter the space, because it’s not in the interest of sectarian power brokers to do so,” he said.

Innovating for fundamentals
And for now, the government has more fundamental problems to address. Bread and medicine shortages have deepened. Cell service is patchy and Wi-Fi depends on electricity, which there is now only a few hours of per day. Many modern-day jobs have become nearly impossible to do.

A fuel crisis means the city has descended into darkness, and a cab crossing town has to stop to siphon fuel from a fellow cab driver’s car or wait in kilometre-long lines at gas stations – many of which either don’t have fuel or are hoarding it to sell at a higher price later as subsidies stop. Now, water shortages are emerging, with UNICEF last month warning 70 percent of the population faces critical water shortages.

“We are innovative, but unfortunately now we have to be for the basics, rather than being innovative in the real sense of the word and creating something new for our businesses to make them grow,” Korab-Abi Nasr said. “Everyone I know around me in the private sector is struggling to stay.”

One of the first tasks the new government faces is restarting talks with the IMF, which President Michel Aoun on Monday said he intends to resume.

The new government formation has opened a pathway to return to talks with the IMF. Headed by Mikati, Lebanon’s cabinet will seek to begin making necessary reforms that previous governments have failed to make. The reforms are necessary to unlock billions of dollars of badly needed international aid. But few have faith this government will get the job done.

“I don’t see any reason why this government would have more success than the previous,” Halabi said. “So we’re going to go to a situation where you have a wider gulf between haves and have not, the private sector will try to cater to the haves.”

Mikati served as prime minister previously from 2011-2014, and he “usually comes in at times when there’s a need for a transition”, Halabi said, adding that his policies are geared towards economic outputs, like adding capacity to the heavily subsidised electricity sector that bleeds billions annually from state coffers.

This time around, the electricity issue is an even bigger challenge, and other issues range from investing in proper infrastructure, vocational training, export boosting measures (Lebanon imports some 80 percent of its food, but it is increasingly focusing on local production), and clamping down on smuggling of fuel and medicine across the Syrian border to the east, according to Paul Abi Nasr, a board member on the Association Of Lebanese Industrialists.

“A couple of regulations that need regulatory structures in specific sectors such as energy, renewable energy, transport, or telecoms would go a long way to opening up private sector opportunities,” Halabi said.

What’s primarily missing is the regulation, which has been drafted. It just needs to be signed.

“This could change under a new government, because all of the work has basically been done. And it will require a lot of a lot of politics, a lot of horse trading [in the] government,” he said. “Now, is that high on the agenda of the government? I’m not really sure it’s first on their agenda.”

Lebanon’s finance ministry on Monday said the central bank would receive $1.135 billion on September 16 in IMF Special Drawing Rights, which is an international reserve asset designed to supplement member countries’ official reserves. The small Mediterranean country’s reserves have dwindled rapidly since a dollar shortage emerged in mid-2019; needed to pay for imports, the lack of greenbacks has caused shortages of basic goods.

Even if the government can secure quick wins to gain popularity – like passing into law legislation that has been waiting for signatures – it will have little trickle-down effect on the starved private sector, according to Halabi. Structural reform takes years, and the problems created by current structural issues are only deepening.

“The private sector is not going to see the effects,” Halabi said. “We’re not really looking at any short-term outcomes on the economic side of things, except for hopefully, some movement on the IMF package.”

Source:https://www.arabianbusiness.com/middle-east/468399-lebanons-private-sector-asks-for-stability-normality

The role of remittance inflows has shifted from developing human capital to meeting basic needs following the outbreak of the crisis with 72 percent of recipients using remittances to sustain their lifestyle or make minor changes, according to The Increasing Role and Importance of Remittances in Lebanon, a report released by United Nations Development Programme (UNDP).

“Before the crisis, remittances were used by households to invest in building human capital, such as health and education. Following the outbreak of the crisis, the role of remittances has changed. They are now primarily used to meet the basic and survival needs of recipient households. These needs include food, rent, and electricity bills. Today, remittances in Lebanon serve as a social safety net for these households,” the UNDP said.

According to Melanie Hauenstein, UNDP Resident Representative in Lebanon, very cheap global digital solutions for transferring money exist but they are not currently activated in Lebanon due to the banking and financial crisis and the difficult economic situation in addition to the lack of required regulations and laws. “This is the reason why expat transfers to Lebanon are often much more expensive than the cost of transfers to other countries. This is because there is less competition,” she said.

The average cost of sending remittances to Lebanon stands at 11 percent, which is significantly higher than the global average of six percent, and also exceeds the average in other countries in the Middle East and North Africa (MENA). “As a result, there has been a shift from formal to informal channels, such as in-person cash handouts, for receiving remittances. These informal inflows are captured by the formal Central Bank figures and constitute around 70 percent of the inflows during the crisis, based on estimations of airport flows of Lebanese expatriates,” the report said. According to Hauenstein, expats won’t have to bring money in suitcases when they can resort to cheap registered digital transfers which can also be tracked and allow the enforcement of accountability.

Lebanon’s remittance-to-GDP ratio reached close to 38 percent in 2022, the highest in the MENA region. This reflects more a shrinking GDP rather than an increase in remittances. Lebanon, despite its size, is ranked as the MENA’s third largest recipient of remittances in terms of value after Morocco and Egypt.

The UNDP recommends measures to tap the substantial size of remittances and the strong connection between the diaspora and Lebanon in order to channel these inflows into economic development. There is an opportunity to channel these inflows into investment in local development and recovery initiatives and to use them to reverse development losses, the report said.

The required measures include developing a transparent and coherent measurement of remittances, restoring the confidence of expatriates in the economy, strengthening the basic infrastructure to create an enabling business environment for investors, allowing alternative means to facilitate transfers such as digital finance, reducing transfer fees to encourage transfers through official channels, and investing in diaspora bonds once trust is restored.

“Policymakers and financial institutions may consider investing in diaspora bonds. These bonds are usually promoted as ‘an alternative to borrowing from the international capital market, multilateral financial institutions or bilateral loans from Government’. Such an instrument could provide expatriates with attractive interest rates or deposit guarantee schemes so that they are encouraged to invest in Lebanon and raise the sense of patriotism among the diaspora. Several countries, such as India and Ethiopia, managed to mobilize development financing using diaspora bonds,” the report said.

Source:http://www.businessnews.com.lb/cms/Story/StoryDetails.aspx?ItemID=11221

The Holy Makkah Municipality has said that the cleaning contracts for this year’s Hajj included 13,549 workers, drivers, supervisors and observers of cleanliness.

Of the 13,549 workers, 7,250 have been allocated to work in the holy sites. A total of 912 pieces of cleaning equipment have been deployed — 438 of them in the holy sites.

The Municipality operated six mobile cleaning stations in the holy sites, in addition to distributing nine waste compactor trucks to support the system of general cleaning work during Hajj.

According to a report issued by the Municipality, the total waste generated in 12 days since the beginning of the month of Dhu Al-Hijjah exceeded 68,000 tons.

The Holy Makkah Municipality indicated that it had provided a temporary storage system for waste — 111 ground storage and 1,071 compact boxes distributed to the holy sites to be used according to the operational plan.

The cleaning plan for this year’s Hajj season began before the arrival of the pilgrims, as the holy sites were equipped in all aspects, such as maintenance work and arranging the places used by the pilgrims during their arrival.

To protect the cleaners from fatigue and sunstroke, the work was divided this year into two morning and evening shifts, avoiding the noon hours, as Hajj this year is coinciding with the peak summer.

These efforts come from the great care the Holy Makkah Municipality attaches to hygiene and environmental sanitation during the Hajj season, as it relates to the health and environmental aspects that accompany pilgrims throughout their journey in Makkah and the holy sites.

Source:https://www.saudigazette.com.sa/article/633859/SAUDI-ARABIA/Hajj-2023-Over-68000-tons-of-waste-generated-in-12-days

The Algerian car market will be equipped with a large number of FIAT vehicles from July onwards, between 10,000 and 12,000 units. This was stated by the Managing Director of Stellantis Group for North Africa at a press conference at SAFEX on the side-lines of Algiers International Fair. Boutahra revealed that they would be importing until the end of the current year to supply the domestic market, saying this is part of a strategy to meet the strong demand for Italian-made cars by Algerians, who have moved to different points of sale since the project was announced.

According to the representative of Stellantis Group, all decisions were taken to meet the high demand of the local market, stating that his company continuously works to ensure the availability of vehicles and meet the demand of the market. “Our showrooms have so far registered no less than 20,000 orders in two months and, based on this figure, we have taken steps to ensure the availability of the Italian brand models that are currently marketed on the local market,” he explained, recalling that the import of new vehicles began on March 19, a highly symbolic date for the history of Algeria.

The spokesperson of Stellantis Group for North Africa noted that Fiat Algérie team has worked continuously to ensure the supply of cars to the national market and stated, with regard to the future plant in Oran, that the pace of work on the assembly unit is appreciable, which will make it possible to say that the completion deadlines “will be respected”. “The rate of progress of the work has reached 64% and the first Algerian-made “Fiat 500” car will leave the factory in December 2023, respecting the dates announced by the “Fiat” brand, followed by a second stage for the production of two other types of vehicles in the first quarter of 2024,” he assured.

Boutahra also mentioned the meeting organized in Italy, in coordination with the Algerian Embassy in Italy, where about 50 subcontractors specialized in the mechanical industry expressed their will to invest in this sector in Algeria, adding that these companies are currently studying this offer.

Source:https://algeriainvest.com/news/hakim-boutahra-dg-fiat-algerie-a-la-fia-12000-vehicules-fiat-sur-le-marche-algerien-a-partir-du-mois-de-juillet

Sonatrach’s CEO, Toufik Hakkar, said efforts should be “intensified to consolidate Africa’s role and capacity to benefit from its natural resources, strengthen economic integration, enhance the sense of collective responsibility, and facilitate the exchange of energy expertise and technologies among its countries, which will benefit its people.”

Sonatrach Group CEO Toufik Hakkar, at the 1st Forum of Directors of Oil and Gas Training Institutions of Member States of the Organization of African Petroleum Producers (APPO), held in Skikda on Wednesday, called for a common African vision to address the challenges posed by the evolution of global energy markets.

Toufik Hakkar said it was necessary to “unify visions and share roles among African countries to meet the demands of global energy markets.”

Speaking at the opening of the Forum organized by the Algerian Petroleum Institute (IAP), Sonatrach’s CEO further stated that “the changing global context demands keeping pace with the continuous technological development in the energy sector”.

This, he added, requires “unifying visions, pooling capacities, and sharing roles, so that African countries can meet the increasing demands of global markets for quality and economic efficiency.”

The forum, organized at the Algerian Petroleum Institute in Skikda, brought together, in addition to the Secretary General of APPO, the executive members of this body and the directors of the training institutions in the field of oil and gas representing 15 member countries of this organization: Algeria, Angola, Benin, Cameroon, Chad, Congo, Côte d’Ivoire, Gabon, Niger, Nigeria, Egypt, Equatorial Guinea, Libya and South Africa.

Source:https://algeriainvest.com/news/marches-mondiaux-de-lenergie-le-pdg-de-sonatrach-plaide-pour-une-vision-africaine-commune

Algeria has made progress in terms of attractiveness and intends to communicate more in order to enhance its attractiveness to foreign investors and develop its influence in the region.

This is the objective of the organization of the International Fair of Algiers (FIA) which brings together more than 630 participants is an exceptional showcase to promote the domestic market and attract foreign capital. Speaking the day before yesterday on the occasion of the Algerian Investment and Export Forum “Algeria Expo-Invest”, organized at the Palais des Expositions in Algiers, Ahmed Berrichi, Director of Studies in charge of the one-stop shop for major projects and foreign projects at the Algerian National Agency for the Promotion of Investment (AAPI), stressed “the importance of the advantages provided for by the new investment law, including the validity of at least 10 years, as well as the abolition of Rule 49/51, except for certain strategic sectors”.

Source:https://algeriainvest.com/news/marche-national-lattractivite-economique-et-commerciale-mise-en-avant