Funding
Despite the continuing deterioration of the economic situation in the country and the demand and need of small and Micro enterprises to finance and non-financial services, which aims helping the poor and improving their income. During the first quarter of 2018, the SFD signed a financing agreement with the National Microfinance Institution with amount of 400 million Riyals (equivalent to $867,248) to enable it to continue to finance the activities of its customers in Sana'a, Ibb, Al-Hudaidah, Taiz, Al-Qa'eda, Dhamar, Yareem, Hajjah, Lahj, Taraba, Dumet, Shibam Kawkaban, Bajel and Aden.
By the end of the quarter, the number of active customers reached 13,109, of whom 35% are women beneficiaries. It is worth mentioning that the national institution ranks first in terms of prevalence and number of beneficiaries of microfinance services in Yemen compared to other MFIs.
Grants
Small and Microenterprise Development Agency:
During the quarter, SMEPS acquired the largest share of SFD support to its partners, which amounts to about 2.5 billion Riyals (equivalent to about $6.7 million), which is 80% of the total support for microfinance programs and institutions. The funding aims at supporting the various activities SMEPS carries out within the framework of the emergency response program projects as well as to support the continuation of its work in health, agriculture and fisheries sectors. The Agency provides non-financial services for the development of small and microenterprises in Yemen.
Yemen Loan Guarantee Program:
In the beginning of March 2018, the Social Fund launched the Yemen Loan Guarantee Program, which aims to help and improve the economic situation of small and microentrepreneurs who are unable to provide the necessary guarantees to finance their activities and support the expansion of small microfinance to achieve leadership in financing guarantee in accordance with international best practice, as well as establishing a confidence-based credit culture in this sector.
The SFD provided support to the YLG program to ensure funding. Total support exceeded 11.1 million riyals ($28,980) to cover the program's operational expenses, provide the necessary supplies for the program's information systems, and train and rehabilitate its cadres.
Yemen Microfinance Network:
The network plays a major role in implementing several activities in the field of developing the microfinance industry in Yemen, implements compensation for war-affected clients (Phase II), and conducts quality training for MFI staff and institutions. Raise the capabilities of its employees and board of directors to contribute to supporting the microfinance industry.
The SFD has continued to support the network, with a financial grant of more than YR115.2 million (equivalent to approximately $300 thousand), which represents the first installment to cover its 2018 expenses project activities, including its operational expenses.
War-affected Compensation Project:
The SFD continues to play a major role in supporting war-affected clients (Phase II). Two projects have been funded to support these clients, implemented by the Aden Foundation and Al Amal Microfinance Bank for a total amount of approximately 108.9 million Riyals (about $283,490).
Rural Finance:
The SFD seeks to access financial services to rural areas to stimulate and support income-generating activities (especially in the areas of agriculture, livestock and beekeeping), which improve the standard of living of working families in these activities. The SFD financed Nama’a Foundation, Al-Ettihad Program, and Azal Program with total amount about 118.1 million Riyals ($ 307,475) to cover the Foundation expenses, Operating and Training expenses of its new branches activities, which were llaunched in Amran, Dhamar, Al-Zaidiyah (Al-Hudaidah) and Saber (Lahj). The number of loans granted to the Foundation and the two mentioned programs amounted to 310, 133 and 119 loans, respectively, until the end of March 2018.
Development of Information Systems Infrastructure in MFIs:
The SFD has played a major role in contributing to the development of the information systems infrastructure of MFIs, which is one of its most important pillars to help speed up customer service, follow up the loan portfolio and make the necessary decisions. A consultant has been hired to modernize and develop the HR system and to link it to automated systems.
Al-Amal Microfinance Bank:
The SFD financed the bank during the quarter with a sum of $25,000 (equivalent to about 9.6 million Riyals) to complete the development of the microfinance and housing products according to best practices to help the bank cope with the current situation and meet the needs of the targeted group. The total funding provided by the SFD to the Bank amounted to $105 thousand (approximately 40.3 million Riyals).
Finally, the SMED Unit visited the National Microfinance Program in Amman, Jordan, in coordination with LFS, to discuss the mechanism of applying the Agricultural Loan Study. A workshop was held and attended by agricultural lending staff from the National Microfinance Institution.
