Newsletter July - September 2017

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Funding (loans and grants)

During the third quarter, a financing agreement was signed with Namaa MFI for YR 200 million to enable it to continue

the provision of financial services to owners of income-generating activities.

During the quarter, grants amounting to approximately YR 954,373,461 (equivalent to USD 3,817,494) were signed in support of several projects, such as: contributing to the support of clients in Al-Ittihad MF in Abyan affected by the war, supporting the Al-Hayat Al-Karima clients of Nama and Azal MFIs, supporting the risk management unit in Hadhramout MFI, in addition to funding of the Small and Micro Enterprises Promotion (SMEPS) to help it finance and support its projects. In this regard, SMEPS alone has received during the quarter YR 915,282,113 (approximately USD 3,661,128) to cover projects in the agricultural sector, training of midwives on the WBOT approach, activities in the fisheries sector, and help cover the Agency's operational expenses and purchasing of fixed assets.

The Loan Guarantee Program (LGP)

The new managing team conducted during the quarter an exploratory visit to Lebanon to gain from the experience of Kafalat Company in Lebanon and reversing it to LGP in Yemen. This project is considered the first of its kind in Yemen.

At the level of internal work systems, the initial version of the MIS has been completed, as well as the final version of the operations manual and its approval by the Social Fund.

On the other hand, discussions were initiated with all MFIs on the guarantee agreements to be signed in the near future, selecting a financial officer for the program, and contacts were carried out with potential donors for funding and technical support, and the headquarters of the program was rented.

Compensation of those affected by the war

Within the war-affected compensation scheme implemented by the Social Fund with funding from the World Bank and supervision by the United Nations Development Program an initial batch of 33 MFI clients (males and females) were compensated for the loss of property and business.

Auditing activities

A team from the SMED unit conducted field audits on samples of borrowers (men and women) in the branches of Hadramout and Al-Ittihad (Abyan), covering several cities in the governorates of Hadramout and Mahrah, including Al-Shahr, Mukalla and Al-Ghaydah.

Software systems

At the level of developing the main computerized systems, the IT team in the SMED unit has updated the mechanism for migrating financial data in Maeen loan tracking portfolio, as well as the mechanism for leaves at the branch level in the HR computerized system.

At the internal level, a mechanism was designed to separate the accounts of the various types of funding (Al-Hayat Al-Kerima and declining partnership) in SMED's internal MIS. The indicators system, which was programmed using APEX language, was also updated. The IT team also made routine updates to the database of the credit bureau. In addition, a consultant was hired to amend and develop SMED's website.

At the level of MFIs, technical support was provided to Al-Ittihad MF in Abyan in the form of reformatting and setting up all the servers in the branches. Also, a communication network was installed between the main office and the branches of Hadhramout MF program, as well as linking the three main MISs (Maeen, HR, and accounting) to each other.

During the quarter, the IT team studied the possibility of introducing a fingerprint based verification system for MFI customers by collecting information and studying what systems and platforms are currently available in the market.

Finally, the data on the beneficiaries approved as part of Al-Takaful project were reviewed. They are to be exempted from repaying the loans due to the damages caused by the war in Yemen.

Other activities

A team from SMED has undertaken all the necessary steps to select a new MD for the National MF Institution (announcement, exam, interviews). The new MD is expected to be employed at the beginning of the fourth quarter. The unit also activated the technical support provided by the German consulting firm LFS and funded by KfW. Finally, a new project officer was hired to work in SMED at the branch of Aden.

Yemen Microfinance Network

During the quarter, the network conducted a number of training and awareness activities aimed at contributing to the technical support provided to the microfinance industry.

Training of Trainers in Financial Education (10-13/7/2017)

The course lasted for 10 days, and its aim was to provide the trainees with the skills and knowledge provided by financial education programs, the methodology of adaptation and evaluation of MFIs. Additional issues included the identification of the factors that affect the communication process with the target group, and determining the proper forms of communication, and the definition of trainees in the best ways to deal with time and the ability to deliver effectively.

Feasibility Study and Market Research (23-27/7/2017)

The course was organized in Aden and was attended by a number of employees from Aden and Al-Ittihad (Abyan) MFIs. The aim was to train the participants on how to conduct feasibility studies on the products and services of small and micro entrepreneurs, and how on market research methodology and its importance.

Corporate Governance Workshop (25-26/7/2017)

The workshop was attended by members of the board of directors of the network, who in turn represent a number of MFIs working in Yemen. The purpose of the workshop was to draw the participants' attention to the importance of governance, the importance of giving it greater importance, and the problems resulting from its neglect.

Marketing Strategies in the Microfinance Sector (25-27/7/2017)

The aim of the course was to familiarize participants with the general framework of marketing strategies in the microfinance sector, the eight elements of the marketing mix, the best market analysis methods used to increase the effectiveness of their activities, and how to implement their training plans in the realm of microfinance. A number of representatives from MFIs in Sana'a as well as from Al-Ittihad (Abyan) attended the session.

Principles of Microfinance (6-15/8/2017)

For the first time ever YMN organized this training course in the governorate of Hadhramout. The course dealt with the main topics of microfinance, such as: history and trends of microfinance, institutional culture, and the skills needed by the lending officers, customer service and market study, accounting for non-accountants, and the lending cycle. The training course was part of YMN's plan for 2017, which includes carrying out a number of training programs in different governorates.

Evaluation of Institutional Situation and Decision-Making (14-16/8/2017)

The course aimed at introducing the participants drawn from MFIs to the problems they face, analyze and compare them, and find possible solutions.

Human Resources for Microfinance Institutions (23-25/9/2017)

The course aimed at introducing HR officers in MFIs to the process of classifying and evaluating jobs, HR planning, in addition to acquainting the participants to the means of attracting labor force, determining of the process of selecting human resources, and career path planning.

Small and Micro Enterprise Development Unit

Republic of Yemen

Social Fund for Development

Sixty street,Faj attan, Sana'a,Yemen

Tel :967-1-449669

Fax : 967-1-499670


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