The wood processing component aims at providing financial and non-financial supportive services to the wood processing sector in Tripoli. The project aims at contributing to Lebanon’s economic development, creating jobs in Tripoli, and enhancing the competitiveness of wood processing sector in Tripoli. The PSD Program develops interventions that target the two types of furniture producers in Tripoli:
• A large number of small producers of traditional designs that can be resistant to change.
• The smaller community of MSMEs that is open to modernization and change.

In Lebanon, the wood processing sector, and particularly the furniture industry, used to be an important driver of the Lebanese economy. Historically, Tripoli constituted the heart of this industry and of the furniture production, hosting the majority of timber warehouses and carpenters. It was the hub for wealthy buyers of luxury furniture, especially from other Middle Eastern countries.
However, in 2010 when the downturn in the wood industry in Tripoli started, the market revealed signs of deterioration highly influenced by:

• A persisting national political impasse.
  • A slowing economic growth.
  • A faltering demand for real estate properties.
  • High imports of cheap competitive modern semi-finished/finished products.
  • The Syrian conflict and local tensions.

Consequently, there has been a significant drop in furniture manufacturing
output and sales. Many of the wood processors, furniture producers, traders, and retailers have closed or are threatened by closure.

EXPECTED OUTCOMES

• Micro, Small, and Medium Enterprises (MSMEs) are re-organized into stronger groups for more efficient and cost-effective use of inputs and resources.
• Expansion of market positioning and market access of MSMEs in the wood
  processing sector.
• New jobs and inclusive employment are created as a result of increased
  production and sales.
• Access to finance is facilitated for much-needed investments; available funding instruments are better used.