- Yemen Microfinance Network

‫‪MicroFinance Magazine‬‬
‫مجلة التمويل األصغر ‪ -‬اقتصادية ‪ -‬فصلية ‪ -‬متخصصة (العدد األول) ‪2014‬م‬
‫وزير الصناعة والتجارة يكرم كال ً من مؤسسة عدن وبنك األمل‬
‫‪MicroFinance Magazine‬‬
‫‪MicroFinance Magazine‬‬
‫‪W W‬الصندوق اإلجتماعي ودعم ال محدود ‪ ..‬ص ‪6‬‬
‫)‪SFD . . . unlimited support ... Pg (6‬‬
‫‪W W‬اللقاء السنوي الثالث للتمويل األصغر ‪ ....‬ص ‪4‬‬
‫)‪Microfinance 3rd Annual Meetting...Pg (4‬‬
‫‪W W‬منظمة صلتك و الوكالة األلمانيةيدعمان األدخار‬
‫الشبابي ‪...‬ص ‪8‬‬
‫)‪Silatech & GIZ support Saving Initiative ... Pg (9‬‬
‫لتصفح المجلة بشكل أفضل استخدم األسهم الجانبية او بالنقر بالماوس على اركان المجلة الخارجية‬
MicroFinance Magazine
MicroFinance Magazine
Puplished by:Yemen
Funded by:
Microfinance Network
Social Fund for Development
Welcome Notes
YMN Members
Nama'a Microfinance Program
Al-Awael Microfinance Company
Azal Islamic Microfinance
Hadhramout Microfinance Program
National Microfinance Foundation
Aden Microfinance Foundation
Tadhamon Microfinance
Social Foundation for Sustainable Development
Al-Amal Microfinance Bank
Alkuraimi Islamic Microfinance Bank
Women Association for Sustainable Development
Al-Khair Foundation for Social Development
Estathmer Program, YLNG
Al-Rayan Financing Program
CAC Bank
Editor
Najah Al-Mugahed
Board of editors
Abdulrhman Al-Azazi
Khalil Al-Mikhlafi
Yahya Al-Fakih
Ali Abu Talib
Abdulkhalig Al-Amdi
‫براند ستار‬
This issue is sponsored by:
WW
WW
WW
WW
WW
CAC Bank.
Tadhamon Microfinance.
Estathmer Program, YLNG.
Aden Microfinance Foundation.
Alkuraimi Islamic Microfinance Bank.
The Microfinance Magazine
I am pleased to introduce the first magazine specialized in Microfinance
activities in Yemen and the Arab region. It is the first Microfinance
Magazine in Yemen since Microfinance industry started in 1997. This
magazine is a result of previous efforts by the Yemen Microfinance
Network in publishing quarterly newsletters. As the network realizes
the importance of expanding its audience base through communicating
microfinance industry issues with organizations, donors, banks,
relevant government agencies, and even
individuals interested in Microfinance
activities as well as MSMEs. In fact, this
magazine is distinguished by its defining
nature of Microfinance activities and
updates in Yemen.
The Yemen Microfinance Network
will ensure timely dissemination of
information through this magazine.
It will publicize its member,s news,
investment opportunities, grants, and
microfinance activities in Yemen.
Moreover, issuance of this magazine
Mohammed Saleh Al lai
is part of the Network›s role in
Chairman of the Board
information sharing as well as raising
Yemen Microfinance Network
the awareness of microfinance
importance , which are amongst
the most critical challenges facing
microfinance activities and outreach in general.
The Microfinance Magazine also aims to update microfinance players
with recent activities on a timely manner, to create a bond linking all
microfinance players in the industry.
We hope the content of the Microfinance Magazine will be up to your
expectations. It is time for you to enjoy the topics of the first issue of the
Microfinance Magazine.
Sincerely yours,
Yemen Microfinance Network
P.O. Box 16072
Sana’a - Republic of Yemen
Tel: +967 1 265870
Fax: +967 1 265868
E-mail: [email protected]
Events
Events
Partners’ Presentations:
YMN members & partners during YMN’s 3rd
During the 3rd Microfinance Annual Meeting, the
Minister of Industry and Trade Dr. Saad Al Deen Bin
Taleb, Mr. Osama Al-Shami, Head of SMED Unit at
SFD, and Ms. Najah Al-Mugahed YMN Managing
Director handed both Aden MF Foundation and
Al-Amal MF Bank the Member and Practitioner
of the Year awards for 2013. In this respect, YMN
congratulates the winners and wishes all success to
other members for the next years.
Effective Governmental
Contribution
The meeting witnessed the presence of many high
profile representatives of the government including
Dr. Saad Al Deen Bin Taleb, Minister of Industry
and Trade who assured in his speech the importance
of microfinance institutions in supporting the
development of agricultural & rural production
sectors as tools to support the national economy
and overcome poverty specially in the rural areas of
Yemen where over 70% of the population live.
Dr. Bin Taleb also highlighted the government’s
gratitude and appreciation for MFIs’ efforts and
work to create job opportunities, and stressed that
interventions made by YMN’s members & partners
in developing the SME within the agricultural sector
and others reflects a great benefit to the economy. He
emphasized on the importance of government’s role
in supporting and encouraging the industry through
provision of trainings & technical support, and
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Quarterly - Economic - Specialized Magazine (No.:1) 2014
a necessity for the private sector to enter the
microfinance industry. Therefore, SFD cooperated
with the central bank of Yemen and the German Bank
for development (KfW), and the GIZ to create the
Microfinance Law. And upon its release the private
sector investors were able to join the industry powered
by their strong belief that this will have positive impact
on Yemen. And so the private sector had become a
strong new comer to the microfinance industry, and
examples include Kuraimi Islamic Microfinance
Bank, Tadhamon Microfinance bank, and the new
comer Enjaz Capital Bank which is still in the process
of finalizing preparations and hiring staff. In addition
to Amal Microfinance Bank which was established in
2008 as a partnership between SFD, AGFUND, as
well as Saudi & Yemeni private investors.
He also commended the role played by the
microfinance institutions most of which were
established by SFD, such as Aden Microfinance
Foundation who has won the Investment Award
among 20 companies in Yemen, and was hounored
by the president, and the National Microfinance
Foundation who has reached 15,000 active clients,
and Nama’a Microfinance Program, Azal Islamic
MF Program, Hadramout MF Program, and Union
Islamic MF Program in Abyan.
YMN Speech
From the network’s side, Ms. Nagwa Fadhle the
Aden MF receiving member awardWW
Serving the National Economy
The speech of Social Fund for Development the main
sponsor of the event was made by its representatives
Mr. Osama Al-Shami Head of the SMED Unit
who praised the role played by the microfinance
institutions in Yemen since 1997 via reaching over
100,000 clients and 624 thousand disbursed loans to
date, with an accumulative amount of Y.R 54 billions,
and currently managing a portfolio of over Y.R 9.5
billion a year.
Mr. Al-Shami went further to encourage YMN to
enable even more trainings for the microfinance
workforce, and hoped that one day there will be a
specialized Microfinance Academy in Yemen from
which MFIs would be able to obtain highly trained
and skilled staff, which would certainly enhance
the performance of the industry. He also asked the
microfinance institutions to carefully assess their
disbursed loan and match them to the clients’ needs,
so that clients would not end up obtaining other loans
from other MFIs. SFD has made great efforts to
salvage this issue via establishing a credit information
desk within SFD, which has enabled MFIs to check
the credibility of the client prior to disbursing the
loan. Also during his speech, Mr. Osama highlighted
the many milestones reached in the microfinance
industry over the past few years and at its forefront
the development of a highly skilled and specialized
microfinance practitioners, and the creation of unique
laws and regulations which had put Yemen at a
pioneer’s level within the region.
And as a result these development there was
Sesame: a high nutritious &
market value commodity:
Al-Amal MF receiving practitioner awardWW
Awards of Member and
Practitioner of the Year
encouraging creativity & innovations in the industry.
Mr. Salah Hassan from Mercy Corps presented
the organization’s plans to intervene in the
development of sesame value chain in several
Yemeni governorates. Sesame which is a relatively
low price commodity and can grow in dry areas
due to its resilience to high temperatures, pests, and
diseases, therefore, it is an ideal crop to grow in the
semi-dry areas of the country.
Mr. Salah highlighted his gratitude to the European
Commission who funded this project. Mercy
Corps works in rural areas of the country through
strategic investments in sesame value chain due to
its high crop value, and which enjoys high market
demands, and the fact that sesame in many cases
integrates with other crops too.
Mr. Osamah Al-ShamiWW
In a well organized event and overwhelmingly rich presence of various
microfinance stakeholders and international supporters, YMN held its 3rd
annual microfinance meeting in Sana’a on Thursday 27th of March. The
attendees included representatives from the private sector, government
authorities, members, donors, investors, INGOs, and many others. The event
succeeded in addressing the importance of microfinance industry’s focus
on the increasing outreach to rural Yemen, and has motivated members
and microfinance supporters to further develop their plans and strategies to
include products and services designed specifically for potential clients in
the agricultural areas of the country.
This YMN organized event was funded by the Social Fund for Development
(SFD), was in partnership with Spark of the Netherland, and Mercy Corps,
the networks new partners. 2014 meeting was titled “development of
Agricultural & Rural Finance in Yemen” and has successfully reflected
the importance of rural finance as a new foundation to support Yemen’s
economy which was greatly welcomed by participants.
Ms. Nagwa FadhlWW
Microfinance Annual Meeting:Rural Finance is the
new foundation to support the the national economy.
Mercy Corps:
YMN’s vice chairman of the board and the managing
director of Aden Microfinance Foundation assured in
her speech that 2013 was a year full of achievements
for the industry. As the number of active borrowers
has reached the 100,000 , and 200,000 for the number
of savers, many members of YMN have established
new branches in several governorates. She also stated
that execution of network’s strategic plan which
had started in 2013 includes many new important
activities including more focused training & capacity
building activities, transparency & exchange of
information, research & development, and promoting
the microfinance industry. Ms. Fadhle highlighted
the many new partnerships the network had formed
with other strategic partners including with the
Microfinance Center in Poland to launch the social
performance management initiative, IFC and Sanabel
in implementing various activities, as well as with
Spark to researching the agri-financial products and
services, and AlHuda Center for Islamic Banking to
conduct a research on Islamic microfinance products
in Yemen, Silatech and the GIZ in the Youth Saving
Initiative. She pointed out that the number of YMN’s
members has increased to 15 members who represent
over 90% of the microfinance sector in the country,
and she also emphasized on the level of attention that
YMN pays to enhancing the quality of service it offers
its members and the industry as a whole.
The presentation also summarized Mercy
Corps’s and its YMN members /local partners’
interventions by helping in development of sesame
value chain which is a highly nutritious commodity
with a high market demand and value, which will
certainly lead to increasing the income of 1000
small farmers, and 500 processors, in addition to
enhancing food security levels through increasing
production of other crops which integrate with
sesame.
Spark:
Spark’s Country Office Manager Mr. Firas Deep
proudly presented the organization’s value chain
development project for a three selected products
strawberry, dates, and honey. The project budget
is 1.7 million Euros. He specified that the project
targets youths aged between 18 – 35 through
provision of necessary financing, capacity building
and training, as well as the required technical skills.
The project will cover the governorates of Sana’a,
Dhamar, Hadramout, and Hodeidah.
Mr. Firas pointed out that implementation of this
project would be in cooperation with microfinance
institutions, as the main goal is to support women
and youth who work in agricultural businesses.
Spark & YMN as well as partner MFIs will
facilitate the provision of the necessary training
and capacity building in business management and
technical skills, as well as linking the beneficiaries
to financial service providers, specifically in the
part of risk sharing and co-sharing the required
collateral so that beneficiaries can obtain the
needed loans for their enterprises with relatively
low interest rates and reduced collaterals.
Small & Micro Enterprises
Promotion Service (SMEPS):
In his presentation, Eng. Fekri Saleh Al-Muafa, the
Business Development Manager at SMEPS shared
highlights of the agency’s agricultural interventions
in five Yemeni governorates through the value
chain projects which the agency had developed, and
had started a revolution in agricultural production
in Yemen. At the forefront of it is melon, and the
seasonal crops like tomato, cucumber, and others.
Fekri explained some of the used methods of
interventions which are based on innovative and
solutions which arise from market research and
understanding market’s needs. Interventions such
as better seedlings, modern irrigation systems,
greenhouses, seeding, and better land care. All of
which were gathered in one frame to benefit the
farmer, and supported by the relevant trainings
and awareness raising which has lead to farmers
doubling their revenue. This has also made 2013
the year in which donors have allocated the largest
amount of support funds for these activities. He
also revealed that the agency has intervened with
a new bundle of 1500 farmers in addition to its
former work with a big number of farmers, while in
its upcoming plans the agency aims to target 2500
farmers throughout governorates of Hodeidah,
Dhamar, outskirts of Sana’a and Abyan.
And as an example of the level of benefits for
the farmers from these projects, Fekri announced
that tomato farmers in a specific area generated a
total annual revenue of $940, thousands for 811
farmers, but now they have reached to $2.7 million
which evidently shows that their income levels
have increased dramatically, and this is the type of
success that we seek.
Partnerships with Agricultural
Funds:
Many members and participants pointed out
several needed clarification which has mostly
focused on their interest to cooperate with
agricultural funds, and or organizations working
to support the development of agricultural finance
and production. For example from one of YMN’s
members based in Hadramout suggested the idea
of collaboration in the honey & dates production,
and others from Abyan & Hodeidah showed their
interest in working in the production of cotton
and red sesame. And from the private sector side,
suggestions to improve their level of involvement
in these projects, and the possibility of developing
a mechanism to support their involvement by
the chambers of commerce and specialized
private companies and to also include CSOs and
agriculture colleges in Yemen.
Stressing on the importance of
agricultural finance:
The event concluded by members and partners
stressing on the importance of agricultural finance
as a new field which can achieve new economical
benefits for everyone, and that which increases
productivity of quality commodities with high
added value. A great partnership opportunity was
revealed by Spark and Mercy Corps who introduced
their plans to intervene financially through value
chain development projects that target agricultural
products and which will certainly be of high added
value to the agriculture sector and aim to help in
reducing food insecurity in the country.
Quarterly - Economic - Specialized Magazine (No.:1) 2014
7
Interview
Interview
SFD covers MFIs expanding to rural area with
cost of assets & operation costs for one year
Mr. Osama Al Shami, Head of SMED Unit at SFD reveals the entry of seven new donors to contribute in Microfinance in Yemen. During
an interview at the 3rd Annual Microfinance Meeting organized by YMN, Mr. Osama pointed out that SFD had met with each of the
new donors/investors individually, and that they are encouraged to invest in establishing a new microfinance bank in Yemen based on the
outcomes of the project’s feasibility study which will be released in April. He also revealed that as part of SFD’s efforts to encourage MFIs
to expand their services in rural Yemen, SFD will cover the cost of assets and operation cost for one year for any new MF rural branches
established by its funded MFIs provided that these expansions target rural areas where microfinance services have not been introduced yet.
100.000 active borrowers have benefited from microfinance service so far:
How do you assess the Yemen Microfinance Network’s
3rd Annual Microfinance Meeting?
The meeting was effectively organized and everyone was optimistic
about the meeting. This is judging by meeting outcomes, the great
turn out of stakeholders and participation of many international
organizations and the thorough discussions about the
Interest
What would MFIs gain by going into agricultural
microfinance, and what are the reflected benefits on the
national economy?
Everyone knows that in Yemen 70 % of population live in rural areas
and the microfinance institutions and programs cannot restrict there
services to the cities. Their services must be extended to the rural
areas. And we at SFD as part of our role to support the industry and
increase its outreach, have announced to our supported programs and
foundations that the SFD will cover the cost of assets & operation costs
for any branches in rural Yemen. Provided that the new branches are
in areas which have not been targeted by microfinance before (no
microfinance provider is there yet). We hope MFIs take advantage
of this opportunity and we are optimistic that there will be many
institutions moving their services to rural areas.
Donors
Are there more new donors to support your funding
activities?
There are seven new donors and we have met each one separately
to encourage them to set up a new microfinance bank in Yemen. A
feasibility study has been conducted by a German compny and the
outcomse are to be released towards the end of April. SFD will be an
investor in the new bank too. Thus, we are hoping that when the time
comes to establish the new bank the security situation in the country
would have improved by then.
Future
How do you see the future of Microfinance institutions in
Yemen?
Microfinance started with many difficulties in 1997. Before that there
was no microfinance industry in the country. As I said, the beginning
was rather difficult but that made us stick to the implementation of
best practices, and decided that SFD would not offer loans to clients
directly. Our dream back then was to reach 50,000 clients, but today
we have broken the 100,000 clients’ barrier. In addition to disbursing
624 thousand loan over the past few year. We see this as an excellent
indicator as these numbers indicate the rapid growth in the industry.
Director of Spark Organization, Mr. Feras Al Deeb:
YMN will always be our main partner. And Spark in partnership with
microfinance institutions in Yemen will strongly intervene in agricultural
financing programs targetd at the Yemeni youth.
Tell us about the organization and its work in Yemen?
The organization has been in Yemen since 2013, it targets
agricultural enterprises with focus on three products
strawberry, dates, and honey. Spark cooperates heavely
with MFIs because our mutual goal is to support youth
and women working in agricultural enterprises where we
will provide training, and build their capacity in business
mamagement & technical skills, as well as connecting
them with sources of finance. We will also work with local
organizations and support access to finance since we work
closely with YMN to acquire the needed information and
data. Spark will also entre the market through partnerships
with MFIs to provide youth with loans with less collateral
and decreased interest rates.
8
What is the size of your project funding and is it enough
to implement the planned projects?
According to our conducted study, our project’s fund is
sufficient for the planned activities, which is 1000 youths.
And we are currently working on building the capacity of
our local partners to be able to continue our work upon
conclusion of our project.
What are the interest rates for the loans granted by
Sparks?
To be honest, we have not yet determined this yet,
and it will be done in due time once we have finalized
agreements with banks and other credit providers
which we have not finished, as we are still working and
pushing on credit providers so that youth beneficiaries
Quarterly - Economic - Specialized Magazine (No.:1) 2014
can receive the lowest possible interest rates.
And at the same time we will also provide
loan guarantees for the youth, provide the
necessary training and certifications.
How do you evaluate your partnership
with the Yemen Microfinance Network?
Our partnership is fundemental and we
can’t stress enough on this. As when
we first started our work in Yemen we held
our very first workshop in partnership with YMN. And
we will carry on woking on new projects to support agrifinance via implementation of pilot projects with MFIs.
And I expect that YMN will be Spark’s main partner in
the country.
Chairman of Board of Nama Microfinance Program:
We are currently looking at agribusiness finance in rural areas
The Chairman of the Board of Nama microfinance Program expressed their increased
interest in the access to finance opportunities in the rural areas. He said that Nama’a
Program will enter the field of agri-business financing with focus on certain products such
as honey including the improvement of the products and marketing it in a better way. As
well as skilled labor based products such as (Mawaz & handicrafts items). He also told
the “ Yemen Microfinance Network Magazine “ we are currently managing portfolio of 800
million Riyals, a mixture between Nama Microfinance project in five governorates and
income generating projects such as seedling, modern irrigation systems and greenhouses.
All of which have helped farmers to achieve huge profits and makes this year’s size of
funds allocated by donors the largest yet, as funds for such projects have exceeded $50
millions.
Interventions
• What are your most important
interventions in the microfinance field?
Nama Microfinance Program works in
5 primary governorates and we have a
program for income generating projects
in all governorates. It is a mixture of
microfinance and trading interventions
and currently we are heading to establish
specialized
microfinance
products
targeting the food and agricultural fields
or so-called ( agricultural nearby ) such
as honey and improve its outputs and
marketing it in a better way as well as the
skilled labor based industries like Ma’awiz
and traditional handicrafts. Our strategy
is to explore areas famous for certain
products such as Wesab which is famous
for making Ma’awiz, then we encourage
producers through providing them with
financial services and marketing their
products in other governorates.
Portfolio
• What is the size of your portfolio?
we are currently managing portfolio of
800 million Riyals, a mixture between
Nama Microfinance project in five
governorates and income generating
projects
Evaluation
• What is your assessment of the
domestic market, levels of utilizing funds,
and its need for funding?
The needs are very large and the
market is still in a need of more and
more interveners. There might be some
obstacles to microfinance outreach to
the areas where there is no access to
provide the service yet.. Even two years
ago, most of the services existed in the
largest provinces and expanding to rural
finance have begun slowly. We currently
serve in rural places such as Waze’eya,
Al Rahidah, countryside in Ibb and other
rural areas and this is important because
more than 70 % of the population live in
rural areas and the rest live in the cities but
they already have the possibility to access
microfinance financial services, though
high levels of interest are being charged
by the banks but those who are deprived
from financial services are people in rural
areas.
Product methodology
• What type of products and services do
you offer?
All of our services are in Islamic formats
Interest rates:
What percentage of interest do you
obtain you’re your clients?
We have different categories of
beneficiaries within Nama Microfinance
Program in the five provinces; interest
rates are between 18-24 % as Murabaha.
This is because most of the funds we
are granted by donors are based on
Murabaha method too and this affects us.
Therefore, we are now working to seak
funds from donors with less interest rate
which will reflect on the beneficiaries too.
Also as I mentioned before we have a
new plan to distribute funds, and we aim
to eventually be able to offer an interest
rate starting from 10% for deprived areas
in rural Yemen.
The government side
• Do you think that the government
should intervene more in order to
support microfinance in Yemen?
Certainly yes. If the government has
further positive interventions, this will
ease the load on the loan requester. The
fact is that MFIs in our country work
on two elements (investment & social
performance) and we at the Islah Social
Foundation which is the supervisor of the
Nama’a MF program are so not interested
in the program profiting from its revenue.
But rather the program becomes self
sustainable. But we are always under huge
pressure due to the interest rates we have
to pay to our donors/investors, and which
we have to pass on to our clients.
Quarterly - Economic - Specialized Magazine (No.:1) 2014
9
Interview
Eng. Fekri Sleh Al Ma’afa , Business Development Manager at SMEPS:
Donors have allocated grants with value
of 50 million USD for agricultural
interventions
Through Seedlings and modern
irrigation system and green houses,
farmers of seasonal corps have achieved
high profits, making 2013 the biggest
year yet, in terms of donors allocating
funds and grants to support these
projects with funding reaching more than
50 million USD.
What are the objectives of your
interventions in the Agricultural Field?
First, SMEPS is an affiliate agency to
the Social Fund for Development. It
focuses on economic development
and supporting Microenterprises and
we have entered the agricultural field
because we believe that the farmer is a
microenterprise him/herself. It is not
necessary that a microenterprise should
be measured by a building or office. The
farmer has a product and this product is
sold to gain an income and therefore, we
at SMEPS believe that evry farmer is an
microenterprise on its own. The agency
specializes in analysis and development
of value chains and we were the first entiry
to focus on this value chain development
in Yemen since 2006.
What is your intervention in the
agricultural sector?
We currently work with almost 1500
farmers and our future plan is to reach
2500 farmers. We work with farmers of
seasonal crops such as tomato, onion,
melon, watermelon. We intervene
through provision of modern technology
for the farmers, such as modern
irrigation systems, and we have identified
10
a substance named (Milsh) which is
basically plastic covers laid on the ground
in order to preserve humidity, which
helps to reduce the amount of required
water, and prevents water evaporation.
It also prevents harmful weeds from
growing and this in turn will cut down the
farmer’s cost and effort.
The second stage is the seedlings in which
we have had great success. We started in
2010 with four farmers and now there are
5 million seedlings produced annually
and the demands are huge. We also
ran an awareness raising campaign on
seedling, and the advantage of seedlings
is that it saves the farmers 45 days of
watering and working time. Therefore,
the farmer is able to market his product
after 40 days only and is able to enter the
market ahead of season in other countries
and achieves high returns.
to buy two green houses at least, and we
provide him a third one free of charge.
Because one house is not enough and
to also guarantee the sustainability of
making the greenhouses locally, which is
a new industry that has been successfully
established in Hadramout
What is the size of your activities in
agriculture and what are your targeted
crops?
Currently we are working on a new group
of farmers ( 811 farmers) in addition to
1200 previous farmers and our coming
plan is 2500 farmers, focusing on
Hodeida, Hadramout, Thamar, and the
suburbs of Sanaa and Abyan.
what ia the concept of a Greenhouses?
We provide farmers with special
agricultural houses for protection from
weather changes and harmful pests.
We also train them which is the most
important task in order to effectively
benefit from the green houses and its
techniques. We encourage the farmer
What is the number of beneficiaries?
In the agency, we have many agricultural
projects such as coffee which is a separate
program in itself. But talking about
value chain development projects, we
at SMEPS also have other projects like
handicrafts, livestocks and several other
sectors.
Quarterly - Economic - Specialized Magazine (No.:1) 2014
*What is the size of your project fund in
this field?
Recently, We reached 2 million USD.
Follow ups
65 Million USD for Small and Micro Enterprises in
Agriculture and Fishery Sectors financed by CAC Bank
Under the slogan of CAC Bank (Once again for a new yemen),
CAC Bank is prepared with a new strategy for Medium,
Small and Micro enterprises for the agriculture and fishery
sectors. As there are several requirements for sustainable
agriculture and fishery development
there is immense need to join efforts
between the public and private
sectors. Those requirements start
with trainings, studies, researches,
financing outreach, and ends with
packaging and marketing at both
local and external levels.
This is what CAC Bank seeks to achieve
in its new strategy for SMEs finance in
agriculture and fishery sectors with total allocations of 65
million dollars, aiming to finance 21 thousand enterprises
(medium, small and micro) to create about 35 thousand job
opportunities by offering a range of services to farmers and
fishermen, especially those involved in small activities. CAC
banking services which include trainings, studies, finance,
and market research will be offered in partnership with local
and international organizations.
The project also aims to encourage
farmers and fishermen to specialize in
products with distinctive advantage
in terms of quality, production costs
and seasons.
It also aims to support and encourage
farmers to use modern equipments
and production methods, through which they will
accomplish a massive increase in revenues, and decrease in
expenses and reserve the natural resources most importantly
water.
Electricity Bills through Kuraimi
A contract was signed between Al Kuraimi Islamic Microfinance
Bank and the Public Electricity Corporation for electricity bills
payments in all governorates of the Republic via Alkurimi›s service
points. This was achieved after long negotiations and follow up with
the corporation to agree on the contract articles. Hence, the contract
was signed by Mr. Yousef Al Kuraimi representing the bank and a
number of directors of the corporation. The bank aims through this
service to be involved in the economic development of the country
Training for Trainers
A training course for trainers was conducted for the training team in Al
Kuraimi Islamic Microfinance Bank between 10 - 12 February 2014. The
course contained several concepts in definition of training, education
for adults, effective training/facilitation methods, and formation
of work groups. It also identified the role of trainer/ facilitator in a
training course, needs assessment, and phrasing training objectives, in
addition to designing training materials and programs. Amongst the
skills perceived in the training course were communication skills and
the use of visual and audio devices.
Awards
Draw
Ceremony
for Youth
Saving
Product
On 2nd February 2014, the second draw for
Youth Saving Product awards was held in the
Cultural Center in Sanaa, the capital. Youth
Saving Initiative Partners participated in the
ceremony, Silatech Foundation, the German
GIZ Agency, Al Kuraimi Islamic Microfinance
Bank, Al Amal Microfinance Bank and Yemen
Microfinance Network. The ceremony started
with verses from the Holly Quran and then
several speeches by the project's partners were
addressed. Mrs. Najah Almujahed YMN's
MD inaugurated the ceremony welcoming all
attendees and emphasizing on the importance
of such initiatives in contributing to economic
development. Then Mr. Abdullah Al Qassem,
and provide their customers with a variety of financial and banking
services in one place.
The agreement was signed on February 2nd, 2014 at the General
Corporation of Electricity Headquarter and attended by Mr. Yousef
Al Kuraimi, Mr. Redwan Al Kuraimi, and Mr. Mohammed Mahmood
and a number of Directors of the Electricity Public Institution. A
network connection is being initiated with the Corporation starting
from the beginning of March 2014.
Al Kuraimi Express Service with
Yemen Kuwait Bank
In a distinctive step for developing Al Kuraimi Express Service, an
agreement was signed with Yemen Kuwait Bank on 28th February
2014, where the later would be an accredited agent of Al Kuraimi
Express Service. This step comes within the plan of Yemen Kuwait Bank
to extend its services with the other banks and financial institutions.
Hereby, Yemen Kuwait Bank›s team was trained on Alkurimi express
system to initiate the service with internal money transactions and bills
payments.
Director of Partnerships and International
Cooperation in Alamal bank delivered a
speech, presenting the bank's developments
and updates including Youth Saving Product.
Mr. Ali Al Kuraimi , Director of Capacity
Development Center in Alkurimi bank,
delivered a speech presenting Al Kuraimi's
contribution to the success of the Youth Saving
Product in Yemen as the number of voluntary
savers reached to 16000 customers before the
draw day. Whereas the Director of Silatech
organization in Yemen , Mr. Mohammed Al
Maitami , deliverd a speech expressing his
surprise at the current number of Youth savers
in one year timeframe as it was planned by the
initiative's partners to have 20,000 savers in
two years’ time 2013 and 2014 but the numbers
exceeded their expectations in one year, and this
shows that there are many banking services that
can be provided for Yemeni youth. Before the
awards draw, the representative of the German
Agency Ms. Tagreed clarified the role of GIZ in
financial literacy training for 3500 youth (males
and females) by the end of 2013 in different
governorates. Awards draw was held for 37
awards for each bank and the grand award
was 7000 US Dollar for one of the savers in Al
Kuraimi Bank and another 7000 US Dollar for
another saver in Al Amal Bank.
Quarterly - Economic - Specialized Magazine (No.:1) 2014
11
Follow ups
Follow ups
Al Amal Bank Officially Launches its services in Abs Branch – Hajjah Governorate
The Assistant Deputy of Hajjah governorate
AbdulAziz Al Ghader launched Al Amal
Microfinance Bank's services in Abs city _
hajjah governorate in order to offer banking
services for owners of Micro and small
enterprises.
During the opening, Mr. Alghader pointed
out the importance of opening a branch of
Al Amal Microfinance in Abs city to offer
financial and banking services for all poor and
low income households which will improve
their income, and contribute to poverty
reduction by financing income generating
activities and employing people.
Al Ghader emphasized on the local authority's
support to the bank's efforts and to overcome
difficulties, to lead Alamal bank to play an
effective role in economic development to
serve low income households.
On the other hand, the Executive Director
of Al Amal Bank Mr. Mohammed Saleh Al
Lai encouraged the branch staff to put more
International Participaiton, and recognition of Al Amal Bank's Activities
President of Uruguay
recognizes Al Amal Bank
success
Participation in Islamic
Microfinance Seminar
in Tunisia
Mr. Mohammed Allai, Executive director of Alamal bank presented the bank's experience
during an event in Uruguay. HE President of Uruguay, Jose Mujica, recognized the success
of Alamal bank through the past five years. Prof. Mohammed Younis attended this event,
who also ensured the bank's distinction as the first microfinance bank in the Arab region,
offering full financial services to the poor and changing the concept of service offering to
social work and partnership for development.
As Al Amal Microfinance
YMN's Members Report For March 2014
SEEP Report for First Quarter 2014
Bank's approach is to
Big Ceremony and
Awards for Savers in
13th, 2014. The purpose of this ceremony was to hand
in the grand prize of the youth saving initiative project. Dhamar Governorate
distinctively serve their customers a big ceremony was
organized in Thamar governorate on Thursday February
The ceremony was held in Albaradooni library, bilques
hall and was attended by a large audience and a number
of prominent social figures in Thamar governorate. The
bank honored its client and handed in its grand award
(USD 7000) to promote the idea of savings and financial
management amongst youth.
An exposure Visit to Kenya to learn from their
leading experience in Microfinance
Within Alamal bank's strategy for Rural Development
2014-2016, targeting rural areas with financial and
non-financial services, a delegation from Al Amal
Bank visited Kenya to learn from their financial
institutions significant experiencese specially Equity
bank to enhance Alamal bank's experience in this field.
Whereas Al Amal Bank launched its services in rural
areas with three branches and more than 15 service
points in the provinces of Ibb, Taiz and Thamar.
Recently, a specialized products is being developed for
rural areas (Agricultural + Animal + fishery) where it is
expected to reach 15,000 rural loan during 2014 at a
cost of 1.2 billion riyals.
12
efforts financing more poor people, expressing
that the purpose of the bank is to outreach and
expand its services, and to be closer to their
customers financial need
He also mentioned that the bank aims
to open a number of branches in Hajjah
governorate because of the increasing demand
for its services, and the total value of loans
distributed from the bank until the end of
2013, is approximately 5 billion Riyals among
Quarterly - Economic - Specialized Magazine (No.:1) 2014
85,000 clients and the number of savers
increased to 55,000.
Mr. Redwan Al Qubati, manager of the third
region of Alamal bank mentioned that Hajjah's
clients reached to 3000 within one year, and
amount of loans dispersed 3 million Riyals.
Al Qubati expressed that the bank aims to
offer more financial and banking services for
the targeted groups to fulfill its mission.
The opening was attended by Parliament
Member, Mr. Ali Bin Ali Al Taieeb, and
General Director of Social Welfare Fund
in the province, Mr. Mohammed Hadi Al
Qanazi and General Director of Social Affairs
Office, Mr. Haitham Al Jabri, and General
Director of Social Fund for Development in
the province, Mr. Hameed Al Namis, and
others.
Al Amal Microfinance Bank, represented
by Mr. Mohammed Saleh Al Lai
Executive Director , participated in the
Islamic Microfinance seminar in Tunisia
that was held on 5th and 6th of March
2014. The seminar was organized by the
Tunisian Assembly for Islamic Economy
in cooperation with the Islamic Institute
for Researches and Training in Jeddah
and the Islamic Bank for Development
and the German Agency for International
Cooperation.
The Executive Director delivered a
complete presentation on the bank's
financial indicators during the past years
since establishment and the different
financial and non-financial services
offered to serve the needs of their targeted
group, owners of Microenterprises,
and low income people. The bank's
experience was admired by participants
from all around the world, for its success
and indicators which places it at the
forefront of MFIs in the Middle East and
the World.
Female
Outstanding
active clients
Number
Number of
loan
as a
of active
voluntary
portfolio
percentage
borrowers
depositors
(Million
of total
YR)
active clients
Cumulative
Cumulative numbers
numbers from the from the beginning of Number
Number of
beginning of 2013
activity
of new
new client
Value of
client
Operational
Value of
during the
Number
Number
loans
during
Financial SelfSelfloans
Year
of loans disbursed of loans
disbursed the Year
Sufficiency Sufficiency (%)
disbursed (Million disbursed
(Million
YR)
(%)
YR)
Rates
No
MFIs
1
Alamal Microfinance Bank
(AMB)
35,318
46%
66,024
2,140
0.60%
100%
56%
7,258
736
91,502
6,307
7,602
36.47%
2
National Microfinance
Foundation (NMF)
15,635
92%
N.A
644
3.95%
133%
90%
4,131
320
120,555
5,785
N.A
16.15%
3
Nama Microfinance Program
9,314
39%
2,931
587
3.07%
133%
103%
2824
323
67,413
4,478
620
9.62%
4
Aden Microfinance
Foundation ( AMF )
10,832
96%
N.A
674
0%
231%
136%
2,691
276
57,628
3,068
1149
11.19%
5
Tadhamon Microfinance
8,787
37%
N.A
1,433
1.10%
116%
116%
8,631
2,105
30,462
6,400
7,142
9.07%
1,604
81%
N.A
47
22.24%
88%
55%
255
24
56,444
2,043
N.A
1.66%
Taiz
4,668
62%
N.A
355
6.05%
117%
78%
986
162
41,905
1,978
787
4.82%
Capital City
3,651
36%
3,634
467
10.32%
147%
118%
1,709
267
16,163
1,420
651
3.77%
Seyun – Hadhramaut
governorate, AlQutn,
Shebam.
919
11,234
5039
2,008
7.25%
All Governorates
5,132
493,306
36,518
19,959
1
6
7
8
9
Al-Awa'el Microfinance
Company
Azal Islamic Microfinance
Hadhramout Microfinance
Program
PAR
(%)
Alkuraimi Islamic
0.33%
7,023
170,579
2137
84%
84%
2008
3%
Microfinance Bank
Total
96,832
243,168
8,484
30,493
Note: Altadhamon Microfinanc's data Belonges for Dec. 2013 wher it was the date we last received from them.
Area of Operation
Capital City, Sana’a
, Ibb, Taiz,
Hadhramout,
AlHudaidah, Aden,
Hajjah, Dhamar.
Capital City,
Dhamar, Yarim, Ibb,
AlQaidah, Taiz, Lahj
, Hajjah, Abs, AlHudaidah, Aden.
Capital City, Taiz,
Aden, Ibb,
AlHudaidah, Hajjah.
Aden, Lahj, Aldhali,
AlMukalla.
Capital City, Taiz,
Aden, Hodaidah,
Hadramout, Ibb,
Amran, Hajja,
Shabwa, Sayoun.
Quarterly - Economic - Specialized Magazine (No.:1) 2014
13
Follow ups
Jadan appointed as a
Managing director for Namaa
and conduct specialized
courses
Amongst the major activities of
Nama Microfinance program
during the first quarter of 2014,
is appointing Mr. Khaled Jadan
as a managing director of the
program, and opening a center
in Wazzan area. The program
also conducted a training course
in partnership with the Yemen
Microfinance
Network
in
delinquency management during
15 – 17 January 2014. The course
was attended by 24 employees
from the operations management
department, including employees
from Ibb and Al Hodeida
provinces. Besides, a field
study for Mocca district, and
implementing a training course in
Subliminal Marketing methods.
14
Contribute to Economic Development in Sayoon and Sah areas
In order to contribute to poverty and
unemployment reduction Alrayan program
launched its income generating projects
in Sayoon and Sah areas, specifically
oil production areas. Phase one of the
project started in 2010 until 2012 with
complete fund from TOTAL Yemen
company Block 10. The initial stages of
the project was encouraging, as it started
immediately after the floods disaster in
Hadramout, in which loans were given
to affected households to rebuild their
homes and establish enterprises. Some
of the enterprises were production based
such as handicrafts, gypsum and cemented
bricks, while others were service based
such as stationeries, pharmacies, bakeries,
restaurants supermarkets, barber shops,
carpenter shops and blacksmithing. In
addition to funding many productive
enterprises in agriculture (seeds, pumps,
irrigation networks) and livestock (Breeding
and fattening goats, camels and chicken)
and honey beekeeping etc.
The total number of implemented
enterprises for the first stage was 489
enterprise, 361 (Males) and 128 (Females)
with the total cost of 92.235.000 Yemeni
Riyal, equivalent to 429.000 USD.
In its second phase (2014 – 2017) Al Rayan
Program along with representative from
TOTAL company, held field visits during
10 – 11 March 2014, to 20 enterprises in
Sayoon and Sah areas to validate the projects
sustainability and prepare citizens for the
new stage of the project. It was approved
with field visit and beneficiary surveys that
the majority of projects are operating and
achieving the expected results, whereas
the guaranteed assets of the projects are
still available and it was documented
photographically.
However, it was assured for all counterparts
of Al Rayan program (Total-Yemen
Company (Donor) , Al Nahdah Social
Association
(Implementer),the
Local
Authority and Ministry of Oil Office
in Sayoon (Supervisors ), the necessity
to continue with this program and
recommended to speed up the process
of signing the funding agreement for the
second phase (2014-2017) between TotalYemen Company and Al Nahdah Social
Assosiation to start with financing clients.
Aden Microfinance Foundation
Value of Loans dispersed 369.306.500 Riyals and a Year of Awards and Honors
Aden Microfinance foundation is one
of the significant institutions in
microfinance. It has issued, in
the first quarter of 2014, 2,579
loans with the amount of
69.306.500 Riyals as a result
it received the President’s
Award for Investment as
the best Microfinancing
institution.
Also, it was honored by the
Yemen Microfinance Network for
their achievements during 2013 with the
member of the year and practitioner of the
year awards 2013, and with this significant
Quarterly - Economic - Specialized Magazine (No.:1) 2014
achievement Aden MF receives 3 awards
in one year. In addition Aden
MF sponsored the launch
ceremony
of
University
Students Campaign for
Media and Advertisements,
and honoring top students
ceremony. It also honored a
numbers of their clients.
It is worth mentioning that Aden
MF during the first quarter of
2014 accomplished 98% of its annual
work plan where it reached by the end
of the first quarter to 11.000 client and 100%
repayment rate.
Follow ups
Hadramout MF Program:
Board visit to the Social Fund for Development
A meeting between Hadramout MF Program’s
Board Delegate and the Social Fund for
Development was held in SFD’s premises in
Sana’a on March 25th.
Mr. Fouzi Ben Zela’a the programs CEO, and
Mr. Abdulrahman Al-Sakkaf the program’s
supervisor and the chairman of Nahdha
Foundation met with Mr. Osama Mohammed
Al -Shami, Head of the Small & Micro
Enterprise Development (SMED) Unit at
SFD, where they discussed strategic issues
related to expansion of the program and it is
activities, in order to increase the number of
beneficiaries, and seaking other sources of
funding besides their main strategic investor
SFD. As well as the development of the
program’s current MIS, financial system, and
introducing new products such as alternative
energy for agricultural development. The
delegation also presented Mr. Osama with a
copy of the program’s annual report for the
past year 2013. From his side, Mr. Osama
Al-Shami commended the efforts made by
the program and Nahdah Foundation and
their successes over the past year. He also
reassured that the full support from SFD will
continue, and pointed out that the program’s
mission has become larger following these
expansions therefore, expansion & scaling
up the capacity of the program staff based on
the market needs are a must to ensure steady
progress.
On March 26th, the delegation met with
Mr. Mohammed Al-Wadhaf the head of MTN
Foundation at the foundations head office
where they discussed possible collaboration
opportunities between both organizations in
regards to serving community development,
and MTN Foundation’s activities in education
& youth development programs. Both
parties emphasized on the importance of
working together to serve the public within
the development field. Mr. Al-Sakkaf &
Ben Zeala’a also visited the head quarters
of CAC Bank’s Islamic Banking Division,
where they where welcomed by the bank’s
HR Manager Mr. Yahya Al-Khateeb, and the
head of the Agricultural& Rural Financing
Division Mr. Nabil Ahmed Saeed. The
delegation also visited the HQ of Yemen
Education for Employment (YEFE), and the
Yemen Microfinance Network (YMN) where
they explored the activities and services of
both organizations and the enhancement
opportunities of their mutual collaboration.
Azal Islamic
Microfinance
Program
Within its plan of expansion, Azal
Microfinance Islamic Program has
started preparations of its new branch
in Mahweet governorate. The number of
loan the program has disbursed to date is
40.291 loans with an accumulative value
of Y.R 3.367.105.930
In addition, the program has implemented
several important training courses for its
staff including:
Management Development (Nerval
Linguistic Programing) (NLP).
The program’s management has also
hounored one of its loyal clients Mr. Taher
AL Thaibani with an exemptionof three
installment payments as an appreciation
to his loyalty over the past 10 years
as well as the great performance of his
small business. In addition, several Azal
program held several workshops focusing
on Portfolio Management, Introduction of
MIS Interface, as well as the participation
in Kol Al Banat Institution to increase
awareness of the Microfinance Industry.
Quarterly - Economic - Specialized Magazine (No.:1) 2014
15