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

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

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

6. What we do? • 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. Members & Services • 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. Financial Indicators April 2013 • Total number of active borrowers: 82,171 • Total number of savers: 159,520 • Total outstanding loan portfolio:7,021million YR = 32,655,813 USD • Total No. of loans dispersed: 563,420

9. Financial Indicators April 2013 • 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

10. Financial Indicators

11. Challenges • 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. Success Factors • 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. Final Remarks • 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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