The Microfinance MF Industry in Yemen

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The Microfinance (MF) Industry in Yemen
Social Fund for Development Small Micro Enterpr
ise
Development Unit
Serving the Poor 10 Million Clients by 2010
Sanabel Fourth Annual Conference
Mohammed S.AL-Lai SMED Unit Head SFD-Yemen
Sponsored by
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Presentation Title
The MF Environment Before SFD Intervention
Sanabel Fourth Annual Conference

• No MF services.
• Lack of credit culture among poor families.
• Dependency on grants and subsidies.

Serving the Poor 10 Million Clients by 2010
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Presentation Title
SFD Intervention Methodology in the MF Sector
Sanabel Fourth Annual Conference

• To support Intermediaries that aim at developing
  the sector through a combination of grants,
  loans, and direct TA, in order to build their
  capacity to deliver financial and non-financial
  services to the economically active poor in a
  sustainable manner.

Serving the Poor 10 Million Clients by 2010
4
Presentation Title
Microfinance Approaches
Sanabel Fourth Annual Conference

• Best practice policies are SFDs cornerstone.
• Delivering through intermediaries.
• Diversity of loan products (group, individual,
  Islamic).

Serving the Poor 10 Million Clients by 2010
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Presentation Title
Microfinance Approaches
Sanabel Fourth Annual Conference

• Diversification of MF financial services.
• Targeting urban and rural areas.
• Targeting both men and women.
• Financial and Institutional sustainability.

Serving the Poor 10 Million Clients by 2010
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Presentation Title
SFD Main Achievements in MF
Sanabel Fourth Annual Conference

• Creation and development of the MF sector from
  scratch.
  
• Creation and continuous development of a basic
  infrastructure for the MF industry to grow
  (systems, cadres, resources).
  
• Introduced the philosophy of best practices.

Serving the Poor 10 Million Clients by 2010
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Presentation Title
SFD Main Achievements in MF
Sanabel Fourth Annual Conference

• Provided support for business development
  services (BDS).
  
• Attracted a number of donors and key players.
• Prepared, and currently carrying-out the
  National SME Development Strategy.

Serving the Poor 10 Million Clients by 2010
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Presentation Title
Sanabel Fourth Annual Conference
Outreach
Serving the Poor 10 Million Clients by 2010
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Presentation Title
Microfinance Providers
Sanabel Fourth Annual Conference
2 Microfinance Foundations
11 MFIs
1 non-profit Company
8 Microfinance Programs
Serving the Poor 10 Million Clients by 2010
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Presentation Title
MF Number of Active Borrowers Savers
Sanabel Fourth Annual Conference
Serving the Poor 10 Million Clients by 2010
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Presentation Title
Sanabel Fourth Annual Conference
Difficulties
Serving the Poor 10 Million Clients by 2010
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Presentation Title
Difficulties Faced by the MF Industry in Yemen
Sanabel Fourth Annual Conference

• Limited or non-existent MF awareness among the
  target group, private and public sector.
  
• Difficult infrastructures and environment.
• Weak local institutional capacity of MFIs and
  partner organizations.

Serving the Poor 10 Million Clients by 2010
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Presentation Title
Difficulties Faced by the MF Industry in Yemen
Sanabel Fourth Annual Conference

• Limited availability of local know-how, and
  qualified cadres.
  
• Unhealthy MF practices by some players (charities
  and subsidies).
  
• Limited supply of non-financial services
  (particularly rural/agricultural) that create
  demand for MF services.

Serving the Poor 10 Million Clients by 2010
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Presentation Title
Strategic Trends in SFD MF Intervention in Yemen
Sanabel Fourth Annual Conference
Vision
Serving the Poor 10 Million Clients by 2010
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Presentation Title
Strategic Trends in SFD MF Intervention in Yemen
Sanabel Fourth Annual Conference
LinkingConnect Microfinance Institutions with
the national or international capital market and
TA providers

• Supporting Industry Development
• -Information exchange
• Capacity Building
• Exchange visit

GreenfieldingSupporting Foundation of a new
Microfinance Institution
Spreading of knowledge and experiences
-Workshops
-Seminars - conference
Piloting Innovative initiatives Supporting the
financial sector
Up-gradingTransformation of a credit NGO into
private institutions
Serving the Poor 10 Million Clients by 2010
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Presentation Title
Sanabel Fourth Annual Conference

• Thank You

Serving the Poor 10 Million Clients by 2010