Livelihoods and Inclusive Finance Expansion (LIFE) Project Year 3 Work Plan

The project has a five-year duration with a five-year base period of $14.8 million and two option years that can be exercised during implementation of $3.2 million and $2.4 million, respectively. In Year 3, the LIFE team will continue its strategy to address the demand, supply, and policy issues affecting the growth and consolidation of the microfinance industry. The financial landscape for "unbankables" and lower-income market segments in Lebanon is evolving in response to significant changes in Central Bank regulations, the growing influence of commercial banks, and various financial technology applications. The LIFE team will provide ongoing and intensive technical assistance and funding to the Lebanon Microfinance Association (LMFA), key Microfinance Institutions (MFIs), and Commercial Banks to accelerate access to finance and lower transaction costs for unbanked and underbanked demographics. The Year 3 program implementation will be characterized by the continued rollout of LIFE's innovative performance-based grant program to MFIs and Commercial Banks, building borrower bases and access to savings, and to NGOs for the provision of Business Development Services (BDS) services targeting the MFI and Commercial Banks borrower and savings base. The Institutional Strengthening Plan (ISP) for the LMFA will be implemented, including the implementation and increased use of a Management Information System (MIS) system that will form the base of an MFI Credit Bureau. A peer visit to the annual SEEP conference in Washington DC will also take place. LIFE will support amendments to the LMFA Bylaws, allowing for an enlarged membership and the addition of new investors. Capacity enhancement plans will be implemented for each MFI and selected commercial banks, including continued capacity building of staff and support to pilot new financial technologies and approaches to expanding services to new communities. An impact evaluation will be managed to track the impact on individual LIFE beneficiaries and national economic implications for the inclusion of more un-bankables into the formal savings and lending infrastructure. The project will also focus on increasing women's participation in the formal financial sector and evaluating the impact of their increased engagement. A partnership with "Nudge Lebanon" will be established to use behavioral change models to effect "pro women" results, including recommendations for policy change at the Central Bank. Communications and outreach to communities where LIFE works will continue to be a critical focus, with a dynamic communications strategy designed to strategically engage and position stakeholder partners and drive project outreach to rural and peri-urban audiences. The Year 3 work plan outlines key activities for each component and major work-stream, highlights the responsible parties, and lays out the timeline for implementation. The anticipated new activities and grants for Year 3 include a Livelihoods grant portfolio, LMFA support, a Loan Officer Incentive Program with MFIs, and access to savings-commercial and hybrid banks. The budget forecasted for these activities is $800,000, with an anticipated timeline of Q1Y3-Q3Y3 (October 2018-June 2019) and direct beneficiaries of 800 (access to savings/loans).