by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: Social Fund For Development and UNDP Meet To Establish Microfinance Network In Yemen

It was recently reported in the Yemen Observer [1] that a microfinance network or trade association will be established in Yemen with a view to promoting best practices, good governance and accountability in the country’s growing microfinance sector. A meeting was held by the Social Fund for Development (SFD) [2] and the United Nation Development Program (UNDP) [3] to select the board of directors for the network and to deal with preliminary matters. The report in the Yemen Observer stated that the establishment of a microfinance network is ‘an integral part of the national strategy to develop the microfinance industry’ in Yemen and that the network will focus on providing the technical assistance, increasing the abilities of MFI officers as well as setting up and supporting a centre for exchanging information, experiences and techniques within the Yemeni microfinance industry.

by Chinq Yee Chong -

MICROCAPITAL STORY: Microfinance as a solution to unemployment in Yemen

According to the Yemen Times, the Yemeni government admitted that its strategy to reduce unemployment to 12 percent by 2010 was failing in a recent official report by the Yemeni Ministry of Planning and International Cooperation. The percentage of unemployment in Yemen varies from source to source because of a divergence in the methods of calculation used and the lack of accuracy of basic figures such as population, percentage of Yemenis who are of working age and so forth. Official statistics put the figure at no less than 16 percent whilst according to Taher Mujahid Al-Salehi, an economist from the Yemeni Research and Studies Center, an unemployment figure of at least 35 percent is more realistic. The official report attributed the lack of progress in reducing unemployment to the Yemeni economy’s inability to provide new jobs for youth. In addition, the low level of qualification among the national labor force remains a significant obstacle to unemployment reduction in the country. The report suggested a number of ways to improve employment figures including conducting qualitative training programs for the country’s labor force and providing employment offices with the means to more effectively advertise job vacancies.

by Jaclyn Berfond -

MICROCAPITAL STORY: Yemen’s Social Fund for Development (SFD) to Serve 100,000 Entrepreneurs Through Microfinance Programs

The Social Fund for Development (SFD), an agency established by the government of Yemen to implement social and economic development programs, announced a strategic plan to reach 100,000 micro and small entrepreneurs (MSEs) by 2012. The SFD is supporting microfinance programs in Yemen in the belief that MSEs will help to alleviate poverty and reduce unemployment in the country.

by Lori Curtis -

MICROCAPITAL STORY: GTZ Provides Microfinance Training to Participants from the Central Bank of Yemen in Anticipation of New Microfinance Law

The German Development Cooperation (GTZ) Private Sector Development Project (GTZ-PSDP) began providing training workshops on microfinance for participants from the Central Bank of Yemen. The first workshop began on January 24 2008, and is the first in a series of workshops which aims to build the capacity of the Central Bank to better understand microfinancing, according to Ozaina Al-Jundi, an advisor for microfinance at the GTZ-PSDP. The workshops will be held every month in 2009. The trainees from this initial workshop will be responsible for applying a proposed microfinance law which is awaiting approval by the Yemeni Parliament. Yemen is a priority partner of the GTZ where it aims to develop and promote business related services, improve political, legal and institutional frameworks for investments and strengthen central government and private institutions. The proposal of a Microfinance Banking Law was discussed in 2007 by representatives of the Central Bank as a first output of a National Action Plan related to the National Microfinance Policy Statement. The Action Plan was developed through a cooperation between the Ministry of Planning and International Cooperation (MOPIC), the Central Bank, Social Fund for Development and with funding from KfW. More information on this can be found in this MicroCapital Story.

by the MicroCapital Team -

MICROCAPITAL STORY: Government of Yemen, Social Fund for Development (SFD) of Yemen, and Arab Gulf Program for United Nations Development Organizations (AGFUND) Invest USD 30 Million in Microfinance I

A shareholding contract for Yemeni microfinance institution (MFI) Alamal Micro Finance Bank has been signed by representatives from the Government of Yemen, Yemeni government-established Social Fund for Development (SFD), and the Arab Gulf Program for United Nations Development Organizations (AGFUND). Each party has a USD 10 million minority share in the Yemeni MFI. Alamal Micro Finance Bank is scheduled to begin microfinance operations this year.

by Vaughn Rajah -

MICROFINANCE PAPER WRAP-UP: “Sustainable Finance in the MENA Region;” by Natalia Realpe Carrillo, Alexander Reviakin; Published by Sanad Fund for MSME Technical Assistance Facility, HEDERA Sustainable Solutions

This report examines the sustainable finance ecosystem in the Middle East and North Africa (MENA) region, including the capabilities of microfinance institutions (MFIs) in the region to contribute to climate change adaptation and mitigation. The objectives were

by Aakansha Shenoy -

MICROCAPITAL BRIEF: ATL Secures $12m from Sanad for SME Leasing in Tunisia During COVID-19 Pandemic

Tunisia-based Arab Tunisian Lease (ATL) recently secured a senior loan of EUR 10 million (USD 12 million) from Sanad Fund for MSME, a Luxembourg-domiciled investor in lenders to micro-, small and medium-sized enterprises (MSMEs), for

by Tejas Gumudavelly -

MICROCAPITAL BRIEF: Jordan Trade Facilities Company Borrows $5m for MSMEs from Sanad Fund

Sanad Fund for MSME, a Luxembourg-based investor in organizations serving micro-, small and medium-sized enterprises (MSMEs), recently agreed to loan the equivalent of USD 5 million in Jordanian dinar to the Jordan Trade Facilities Company (JoTF). The investment is intended to

by Nathan Kiplagat -

MICROCAPITAL BRIEF: Al Hussein Fund, Sanad Fund for MSME Offer Online Curriculum for Young Owners of Small Businesses in MENA

The Jordan-based, nonprofit Al Hussein Fund for Excellence and the Sanad Fund for MSME, a Luxembourg-domiciled investor in micro-, small and medium-sized enterprises (MSMEs), recently partnered to give young business owners in the Middle East and North Africa no-cost access to a course called “How to Start and Manage a Successful Business.” The course, which was delivered in Arabic on the Edraak online education platform, “comprises

by Jessica McLeod -

MICROCAPITAL BRIEF: Sanad Technical Assistance Facility, Egyptian Credit Bureau I-Score Seek to Boost Finance for Farmers; Agricultural Micro-, Small, Medium-sized Enterprises (MSMEs) in Egypt

The Sanad Technical Assistance Facility, which is affiliated with the Luxembourg-domiciled Sanad Fund for MSME (Micro-, Small and Medium-sized Enterprise), has collaborated with the Egyptian Credit Bureau, also known as I-Score, to build an Agricultural Credit Evaluation and Risk Assessment System (ACERS). I-Score will implement this “web-based credit assessment and scoring tool,” with the goal of

by Chee Meng Ng -

MICROCAPITAL BRIEF: Ethiopia Deregulating Mobile Money Market in Bid to Increase Financial Inclusion

As part of a larger economic reform package, Ethiopia’s central bank, the National Bank of Ethiopia, is seeking to increase mobile money usage in the country by issuing mobile money licenses to non-financial institutions. Banks and microfinance companies already offer financial services via mobile phones. To qualify for a license, a firm must be owned by

by Kiersten Greene -

MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $10m to Fondation Arrawaj de la Finance Inclusive of Morocco

The Sanad Fund for MSME, a Luxembourg-domiciled investor in micro-, small and medium-sized enterprises (MSMEs), recently issued a loan of USD 10 million to Fondation Arrawaj de la Finance Inclusive, a Moroccan microfinance institution

by Anna Gravois -

MICROCAPITAL BRIEF: NilePay, Zain to Launch Mobile Money Service in South Sudan

NilePay PLC, an electronic financial services company in South Sudan, and the local member of the Zain Group, a Kuwait-based mobile telecommunications firm, are launching a licensed mobile money service in South Sudan. The NilePay service will allow customers to