Lebanese workers thrust into poverty, depression amid COVID-19 lockdown
January 27, 2021, 11:44 am

Lebanese workers thrust into poverty, depression amid COVID-19 lockdown

A view shows empty road as Lebanon tightened lockdown and introduced a 24-hour curfew to curb the spread the coronavirus disease (COVID-19) in Beirut. (File photo: Reuters)

Lebanon has extended its all-day lockdown until February to curb the spread of coronavirus. The lockdown, in place for nearly a month by February 8, is hitting daily wage and informal workers hard, who find themselves without resources and walking a fine line between life and death.

As COVID-19 cases spiraled out of control in Lebanon, the government enforced a lockdown from January 14 to 23. With daily infection rates remaining exceptionally high and COVID-19 death tolls spiking, the government decided to expand the total confinement for two more weeks until February 8.

“The impact of the lockdown has been brutal on daily wage and informal workers because of their already fragile situation. In Lebanon, 55 percent of the population is comprised of daily wage and informal workers with no social protection or regular contracts. If they do not work, they don’t earn any money. They have thus lost all source of income with the current lockdown,” said sociologist Dr Adib Nehme.

Mona Saad, head of the Maarouf Saad Social and Cultural Foundation concurred, adding that the government had no plan in place to bring relief aid to daily wage workers, such as artisans, taxi drivers, waiters, sailors and others, during lockdown.

“Unlike other governments, the Lebanese government maintains a reactionary approach to the COVID situation and no long-term plan,” she said.

In the last few weeks, Lebanon has averaged 5,000 new COVID-19 cases per day, with deaths rising between 40-60 every day. The situation is no better in the country’s intensive care units, where the occupancy rate is close to saturation at 90 percent in most of the country and 100 percent in Beirut, according to the World Health Organization (WHO).

In 2020 poverty among Lebanese had increased to 55 percent from 28 percent in 2018, while extreme poverty had tripled to 23 percent from 8 percent, according to UNICEF. For Syrian refugees, 91 percent of households were now living under the poverty line and 88 percent living in extreme poverty.

Charbel a taxi driver said he hadn’t worked in over two weeks. “I can barely make ends meet. I used to be a mechanic, now I work as a taxi driver to sustain my family. With the lockdown I can’t provide anymore for them and rely on my in-laws for help,” he underlined.

Competition for work was so high in recent weeks that a brawl between taxi drivers erupted last week at the Beirut airport over who would shuttle incoming travelers to their hotels.

The situation is compounded for daily wage workers in Palestinian camps. Oussama Oueity works as a painter. He makes less than $6 on a good day, which allows him to feed his family with some bread, rice and lentils, as well as buy medication for his son who suffers from a heart condition. With the lockdown, his family now sticks to a strict regimen of bread and rice. “I still give thanks to God that some of my clients and Fatah, the Palestinian organization give me a stipend that allows us to survive,” he points out.

Inflation had already soared to 133 percent by October last year, with prices set to rise even further this year. Along with a crushing currency devaluation, the impact of these crisis will further increase the risk of more households falling into poverty.

“If the lockdown continues for one or two more months, I will have to close my hair salon. The Lebanese pound devaluation combined with the COVID crisis has made our situation untenable. Unlike other countries, the Lebanese state has done nothing to support daily wage workers or small businesses during the lockdown,” said hairdresser David Checherian.

Additionally, financial problems combined with the lockdown are putting pressure on people’s mental health. Thousands of Lebanese are suffering from extreme depression and looking for dangerous solutions to the economic depression, Nehme explained.

“People are facing a slow death, they are resorting to increasing violence and this will eventually threaten the fabric of the country’s social security,” Saad added.

source: Mona Alami

Image source: Reuters

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.