Yemen's microfinance sector is a story of both remarkable progress and persistent challenges. Introduced in 1997 with the backing of international donors, microfinancing emerged as a vital tool in the fight against poverty and unemployment. The Social Fund for Development (SFD) acted as a driving force, establishing the Small and Microenterprise Development Unit (SMED) to head this…

Yemen's agricultural communities face a perfect storm of growing ecological threats amid protracted conflict. Flash floods destroy farms, crops, and irrigation systems. Late rains risk drowning mature harvests, and waterlogged fields hinder root growth. Coastal areas battle salinization, and collapsed roads and buried wells hamper recovery. As flooding and changing rainfall patterns…

This policy brief outlines a set of recommendations aimed at empowering local authorities in Yemen to effectively provide services and lead local economic development. The aim is to analyze and draw lessons from three ongoing tracks that seek to empower local authorities in Yemen, while also addressing the challenges and opportunities associated with these efforts.

Since April 2022, the war in Yemen has mutated from a volatile, high-casualty conflict to a protracted stalemate with stable frontlines. The contest is now over the economy, as the Houthi group (Ansar Allah) leverages negotiations and its military power to put fiscal pressure on the internationally recognized government, stoking discontent as public utilities break down and the currency…

This brief provides an introduction to electricity provision in Yemen and explores the viability of specific solar energy applications for Yemen’s fragile context. It further considers the feasibility of partnering with the private sector in the solar energy sector, and finally presents recommendations and practical steps to address challenges to scaling-up investments in this sector in…

Electricity is the backbone of any economy and one of the necessities of modern life. Since even before the current war, poor electricity services in Yemen have been one of the key barriers to sustainable economic development and basic service provisions, such as water supply, health care, and education. This policy brief presents an overview of the electricity sector and its relevant…

Even before the events of 2014 and 2015 that led Yemen into the ongoing civil war, its economy was fragile. The years of hardship that have haunted the country ever since have been devastating. Yemen is now rated as one of the hardest places in the world for businesses to operate and is last or near last in a host of global business competitiveness indexes. From January 25-27,2021 the…

This study examines the current trend of solar-powered irrigation system (SPIS) use in Sana’a Basin, identifying the pros and cons of this approach. It presents the perspectives of farmers and experts in terms of what is happening and what should be done to maximize the benefits and minimize the negative impacts of SPIS. The incidence of SPIS installation is increasing at a rate of more…

The telecommunications and information technology sector in Yemen is a vital component of the country’s infrastructure and plays a critical role in economic growth. It is the second largest source of public revenue after the petroleum sector, and contributes important work opportunities, whether directly or indirectly, through its connections to other sectors of the national economy.

The sustainability of a peace agreement in Yemen depends on two critical economic issues. First, in a conflict that is largely over access to resources, the issues of distribution, control, and sharing of those resources can make or break peace. Therefore, these issues must be addressed head-on during negotiations. Second, where peace agreements lack provisions that create overall economic…