Beirut, Lebanon – 2022: Education is highly cherished among Lebanese families, with many parents working extra hard to ensure that their children get into the best schools and colleges. Indeed, in Lebanon, nearly 1.25 million students are enrolled in the education system, of which around 60% attend private schools. The burden of education in Lebanon falls on parents’ shoulders who pay a combined $1.5 billion USD a year in tuition.1 The cost of tuition has become increasingly difficult due to the rise of dollarization with the Lebanese pound (or lira) that has lost over 80% of its value since October 2019.2 This is compounded by the recent announcement that starting Fall 2022-20233, most Lebanese universities will start dollarizing their tuition.4
On July 1st, 2022, the World Bank issued its annual gross national income (GNI) per capita, which ranked Lebanon as a “Lower Middle-Income Country” for the first time in 27 years. According to the World Bank, the GNI per capita of Lebanon was $7,590 USD in 2018, which dropped to USD$3,450 USD in 2022.5 Lebanese families’ budgets are being squeezed to cover the ever-increasing school costs, including tuition fees, uniforms and books. It is unsurprising, therefore, that many families count on their relatives abroad to supplement their education budgets.
According to the World Bank, Lebanon received $6.61 billion USD in personal remittances in 2021.6 Another study conducted by the International Monetary Fund (IMF) Middle East and Central Asia Dept, found that remittances constitute 40% of the income of recipient households; and these households finance 40% of their education costs with remittances.7
It is with regard to this central role of remittances in giving Lebanese children a proper education that WorldRemit has made investments that increase the access to secure money transfer services even in the remotest parts of the country.
This has been achieved through the WorldRemit app and website which has facilitated instant transfers and quickened transactions from anywhere in the world such that over 90 percent of all WorldRemit transactions are complete within minutes.
Equally important, is that WorldRemit strives to keep transaction costs minimal, and that is why we are always upfront with the rates and fees incurred in transactions, eliminating situations where recipients collect lower amounts than the sender intended. We understand that every dollar counts, especially during the current difficult economic times and we strive to keep our charges reasonable.
Meanwhile, we are continually upgrading our technologies to improve on our transaction time, and effectively transaction costs, benefits which ultimately get to such beneficiaries as the students in Lebanon, whose schooling is driven by remittances. In this humble way, we see WorldRemit as a critical player in the socio-economic transformation of Lebanon, and, by extension, the whole world.
Sources:
1. World Bank Group. Foundations for Building Forward Better : An Education Reform Path for Lebanon. 2021
2. Alt-M. Dollarization for Lebanon. July 2020
3. Al Fanar Media. Lebanese University Students Protest ‘Dollarisation’ of Tuition Fees. June 2022
4. L’Orient le Jour. Lebanese universities begin to hike their tuition rates in the wake of “lollar” exchange rate increase. February 2022
5. The 961. World Bank Classifies Lebanon As A Lower Middle Income Country For First Time In 27 Years. July 2022
6. Italian Trade Agency (ITA). Lebanon: Expatriates’ Remittances to Lebanon Projected at $6.6BN in 2021. December 2021
7. International Monetary Fund. Middle East and Central Asia Dept. Lebanon: Selected Issues. 2017
About WorldRemit
We’re a leading global payments company and, along with Sendwave, part of Zepz, a group powering two global payments brands.
We disrupted an industry previously dominated by offline legacy players by taking international money transfers online – making them safer, faster and lower-cost. We currently send from 50 countries to recipients in 130 countries, operate in more than 5,000 money transfer corridors worldwide and employ over 1,200 people globally.
On the sending side WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, the company offers a wide range of options including bank deposit, cash collection, mobile airtime top-up and mobile money.
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