The International Finance
Corporation
The International Finance Corporation (IFC) recently
approved a technical assistance program for Yemen. The
Private Enterprise Partnership for the Middle East (PEP-ME),
which received start-up funding of $10 million from IFC for
four years, will develop projects in Yemen to improve the
business and regulatory environment, strengthen financial
institutions and markets, stimulate the growth of small and
medium-sized enterprises, and assist in the restructuring
and privatization of state-owned enterprises. The facility
is expected to seek up to $30 million in additional
contributions from other donors, and the program is also to
package funds for Afghanistan, Iraq, West Bank and Gaza.
The Economic and Commercial Officer (ECO) of the Yemen
Embassy recently conducted a meeting with the IFC. The
meeting encompassed discussing potential investment,
financial assistance and other forms of economic cooperation
with Yemen. It was conveyed to ECO and the Delegation that
the IFC is interested in investing more in Yemen. Previous
investments in Yemen have accounted for less than 20 Million
US dollars. The IFC has recently invested about 16 Million
US dollars toward the silos in Aden, the Ahlia Water
Facility and Radfan Ceramic Tiles. The pace of economic
development and the market in Yemen are growing. Most
notably, and democratization is proceeding with much
success.
It was indicated that the IFC can extend loans at just 5
percent (or even with 2 percent) interest rate to finance
projects. In addition, the IFC can set up advisory
facilities to provide technical assistance for
small-to-medium size enterprises, such as in the areas of
accounting and corporate governance. The IFC can also
intervene as an investor, including toward industries. The
IFC recommends that Yemen continue with the improvements
made – such as in the local banking system (i.e., conferring
a larger role for private banks and leasing companies); and
its macroeconomic indicators (especially reducing its
foreign debt and increasing its country reserves).
The IFC promotes sustainable private sector investment in
developing countries as a way to reduce poverty and improve
people's lives.*
The IFC is a member of the World Bank Group and is
headquartered in Washington, DC. It shares the primary
objective of the World Bank Group institutions: to improve
the quality of the lives of people in its developing member
countries. Established in 1956, IFC is the largest
multilateral source of loan and equity financing for private
sector projects in the developing world. IFC has 175 member
countries, which collectively determine its policies and
approve investments. It promotes sustainable private sector
development primarily by:
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Financing private sector projects located in the
developing world. |
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Helping private companies in the developing world
mobilize financing in international financial
markets. |
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Providing advice and technical assistance to
businesses and governments. |
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