Sana'a: The General Authority for the Development of Small and Micro Enterprises launched the Community Financing Portfolio Project in the capital city of Sana'a, attended by Capital Sana'a undersecretary Khalid al-Madani. Head of the authority, Ahmed al-Kebsi, urged business leaders, investors, and local donors to support the initiative, which is set to officially commence tomorrow with backing from the General Authority for Zakat and the Agricultural and Fisheries Projects and Initiatives Financing Unit.
According to Yemen News Agency, al-Kebsi stated that the project is unique because it offers interest-free loans, serving as a part of a comprehensive financing cycle. This cycle begins with the initial funding, followed by project operation and development, culminating in loan repayment. The returned funds are then redirected to new beneficiaries, creating a sustainable community financing system that empowers small businesses and productive families. The initiative aims to boost the local economy, improve income, and enhance employment opportunities by providing accessible, interest-free loans.
Al-Kebsi highlighted that the financing portfolios are designed to empower small businesses without imposing financial burdens, as there are no operating expenses for the beneficiary. The project targets small business owners in commercial, productive, and service sectors, existing businesses requiring operating loans, struggling businesses with growth potential, and new, scalable small enterprises.
He also noted that the support from business leaders, investors, and local donors is viewed as an investment in the community's productive capacity, rather than temporary financial assistance. The recurring financing cycle philosophy allows for the expansion of beneficiaries. There are 32 centers across 32 districts in the capital city that will provide community financing services.
Sheikh Shamsan Abu Nashatan, Head of the General Authority for Zakat, explained that in collaboration with the General Authority for Small and Micro Enterprise Development, numerous economic empowerment projects have been implemented, costing over three billion riyals, with Al-Hudaydah Governorate receiving the largest share. Thousands of families have benefited from these projects, reflecting the leadership's commitment to economic empowerment.
Abu Nashatan lauded the efforts of the General Authority for Small and Micro Enterprise Development in supporting small and micro enterprises. Hamoud Al-Naqeeb, head of the Social Affairs Committee of the Capital Governorate, emphasized the successes achieved through coordination between the Capital Governorate and the authority. He pointed out that the project is based on a governmental and community partnership with cooperative societies, enhancing accessibility for target groups.
The developmental value of financing portfolios lies in maximizing the impact of limited resources, as regular repayment cycles allow the same capital to support multiple projects in successive phases. A speech by community empowerment center members praised the authority's efforts and called for the expansion of economic empowerment projects due to their positive impact on economic conditions across all sectors.