Lebanon and World Bank sign $150m loan deal to support digital transformation

Lebanon and the World Bank have signed a $150 million loan agreement to accelerate the country's digital transformation, aiming to move citizens away from paper-based government services toward accessible online platforms. The Digital Acceleration Project, formally approved by World Bank directors in January, was signed in Beirut by the World Bank’s regional director Dalia Khalifa and Lebanon’s finance minister Yassine Jaber.

“The digital transformation project was a fundamental pillar for modernising the public sector,” Finance Minister Yassine Jaber said, linking the loan to improvements in the efficiency of public services.

The project is designed to “improve the delivery of high-impact public services through digital transformation of the public sector,” the World Bank said, by enhancing digital platforms and data capabilities. Specific elements include the provision of secure and efficient infrastructure for hosting government data and targeted investments in Lebanon’s cybersecurity — a priority as the country seeks to protect sensitive citizen information and government systems.

Project details and immediate priorities

• Loan amount: $150 million, approved by World Bank directors in January and signed in August.
• Signatories: Dalia Khalifa, World Bank regional director; Yassine Jaber, Lebanon’s finance minister.
• Ministerial leadership: Kamal Shehadi, a Harvard‑educated economist, was appointed last year as Lebanon’s first Minister of Technology and Artificial Intelligence to lead the digital push.
• Core investments: secure government data hosting, enhanced digital platforms, and cybersecurity upgrades.

The loan comes as Lebanon grapples with severe macroeconomic and security challenges. Since 2019 the country has faced one of the worst economic crises described by the World Bank, and it continues to feel the impact of the recent round of fighting between Israel and Hezbollah. State infrastructure including telecoms, internet services, water and energy networks has been described as dilapidated and in urgent need of upgrading — gaps the Digital Acceleration Project aims in part to address.

World Bank estimates put Lebanon’s reconstruction costs at around $11 billion, underscoring the scale of investment required across sectors. The government of Prime Minister Nawaf Salam has said it remains committed to reaching an agreement with the International Monetary Fund; Lebanon reached a staff-level agreement with the IMF in 2022 that could unlock roughly $3 billion pending required reforms. The IMF has said recent engagement with Lebanon focuses on managing the conflict’s economic effects and advancing a programme tied to banking-sector reforms and a medium-term fiscal strategy.

Outlook

Officials cast the $150 million loan as a strategic step to modernise public service delivery and shore up institutional capacity for digital governance. Implementing secure data-hosting infrastructure and stronger cybersecurity are expected to be immediate priorities, while longer-term gains depend on parallel investments in telecommunications and power networks. The appointment of Kamal Shehadi as the country’s first technology and AI minister signals a political commitment to the agenda, but officials and development partners will need to navigate fiscal constraints, infrastructure deficits and recurring security risks to translate the financing into sustained digital access for Lebanese citizens.