The Overseas Private Investment Corporation (OPIC), an agency of the US government that facilitates investment by US-based firms in developing countries, recently loaned USD 150 million to the local member of US-based Vitas Group for on-lending to “small, medium-sized enterprises, women, and rural borrowers, and to groups that face substantial barriers to financial services in Lebanon.” Vitas Lebanon has loan products designed for consumption, business and home improvement. From 2012 through 2016, it reported disbursing 182,000 loans totaling USD 314 million. Its borrowers, of whom are 60 percent male, are active in sectors such as tourism, trade, manufacturing, services and agriculture.
Founded in 1999, Vitas Group is a for-profit entity that offers financial services and entrepreneurship training to individuals aged 18 to 35 in Egypt, Iraq, Jordan, Lebanon, Palestine and Romania. The group focuses on delivering services to women, youth, rural customers, and small and medium-sized enterprises through 60 branches in five countries. Vitas Group is in the process of opening its first branch in Egypt. As of 2017, the group reports an aggregate outstanding portfolio of USD 159 million.
Vitas Group was founded and is owned entirely by Global Communities, a US-based NGO that provides financial, health, urban-management and other services in 43 countries. Global Communities generated revenue of USD 134 million during 2017.
Established in 1971, OPIC is an agency of the US government whose function is to promote economic partnerships and invest in areas deemed important to US interests. OPIC provides loans, grants, advisory services and political-risk insurance to private equity funds and financial institutions as well as projects in the healthcare, energy, technology and education sectors. During 2018, the organization mobilized total capital of USD 10.6 billion from both the public and private sectors, closing the year with 112 active projects.
By Umit Naz Deryaoglu, Research Associate
Sources and Additional Resources
OPIC press release
https://www.opic.gov/press-releases/2018/opic-board-approves-more-13-billion-development-projects-africa-indo-pacific-and-latin-america
Vitas Lebanon homepage
http://www.vitaslebanon.com
Vitas Group 2017 financial report
https://issuu.com/vitasgroup/docs/vitas_2017_annualreport_final
Global Communities 2017 financial report
https://www.globalcommunities.org/node/38672#annual-report
OPIC homepage
https://www.opic.gov
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