Background Yemen is a frontier, post-conflict nation and remains high on IFC’s list of intervention countries. Possibly, the poorest country in the region, it is plagued by unemployment (estimated at 20-35%) and a sluggish economy. This slow economic growth arises mainly from i) a complicated policy framework ii) insufficient access to finance iii) limited competitiveness of the private sector including that of women-owned enterprises. However, Yemen clearly has potential in certain areas. It has an extraordinarily advantageous geographic position with good deep-sea ports and excellent mineral resources.
Strategy In Yemen, there is a clear need for job creation since the country has a high unemployment rate. Private investment needs to increase substantially as a share of GDP and the Government has started encouraging the private sector to enter new sectors, including ports, refineries, building materials and hospitals. IFC, which has suffered in the past from dealing with weak sponsors, is focusing on the stronger private groups in Yemen. A new focus is on the underdeveloped financial sector; banking, leasing, trade finance and micro-finance.
Expected Impact Through these various interventions, IFC aims to effectively enhance private sector competitiveness and employment generation in Yemen. All projects will be measured specifically for the investment, employment and income opportunities generated.
For further information on IFC work in Yemen, please contact:
Raymond Conway Country Officer - Yemen International Finance Corporation World Bank Building - P.O. Box: 18152 Hadda Street, No. 40 off Damascus Road Sana'a, Republic of Yemen Tel: +967 1 413 708 Fax: +967 1 431 376 Cell: +967 7340 69 444 E-mail: rconway@ifc.org Web: www.ifc.orgÂ
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