1. The exchange: Strengthening Accountancy as a foundation for MSME sector development and Job creation Innovations in MSME financing 20 th June 2013

2.  History of MF in Yemen  What do we do in YMN  Members & Services  Financial Indicators  Challenges  Success factors  Final Remarks

3.  Started in 1997 by the Social Fund for Development (Piloted 5 programs).  In 2002, some of the programs emerged into foundations.  In 2006, Al-Tadhamon International Islamic Bank, the largest private bank in Yemen, established a program to serve SMEs with loans.

4.  In 2008, AGFUND, SFD & the private sector established Al-Amal Microfinance Bank which was the first bank specialized in small and micro financial services.  In 2009 the Microfinance law was issued.  In 2010 Al-Kuraimi Islamic Microfinance bank was the first to be licensed under the Microfinance Law.

5. SFD supports the sector Small & Micro Enterprises Promotion Services Agency (SMEPS) Yemen Microfinance Network (YMN) 2 Non-Financial Institutions Business Development Services (BDS) Training & Technical Assistance to MFIs To SMEs To MFIs

6.  We focus on: ◦Training and building the capacity of microfinance practitioners, ◦Facilitate information sharing among microfinance practitioners, ◦Ensure transparency of information, ◦Research and development, ◦Promote the microfinance sector.

7.  12 members in YMN (3 banks, 3 foundations, 1 company, 5 programs), 90% of the MF industry.  Services provided: ◦Loans (Individual/group) ◦Savings (Compulsory/voluntary) ◦Insurance ◦Training and consulting (Alamal training institute)

8.  Total number of active borrowers: 82,171  Total number of savers: 159,520  Total outstanding loan portfolio: 7,021 million YR = 32,655,813 USD  Total No. of loans dispersed: 563,420 April 2013

9.  No. of job created: For every 500 USD 1.2 job opportunity ◦= 32,655,813 USD / 500 * 1.2 = 78,373.9 jobs created  No. of beneficiaries = no. of loans dispersed * 6.5 (average no. of Yemeni family members) ◦563,420 * 6.5 = 3,662,230 No. of beneficiaries April 2013

11.  Culture of MF and lending  Lending is concentrated in Urban areas  Limited product diversification  Effects of Political crises in 2011  Staff turnover rate  Infrastructure, electricity, transportation  Operational cost, and sustainability

12.  Portfolio at risk is 0% highest 5%  In 2010 growth rates is 62%  MF law issued in 2009  Mobile banking  Provision of Non-Financial services (SMEPS)  Support of MFIs (YMN)

13.  ILO report " Generation at risk" 73 million young people are estimated to be unemployed by the end of 2013.  In Yemen almost half of the population in lives below the poverty line  Poverty alleviation + job creation = One of the many approaches is Microfinance.  YMN’s Vision: Microfinance opportunities to all low-income Yemenis.

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