Sana'a: The General Authority for Small and Micro Enterprise Development granted interest-free cash and in-kind loans totaling 1.804 billion riyals last year to support small and micro enterprises. This funding initiative was conducted in collaboration with the General Authority for Zakat and the Agricultural and Fisheries Projects and Initiatives Financing Unit in the capital city.
According to Yemen News Agency, the loans targeted 1,787 small and micro projects across various sectors. These projects involved establishing and developing factories and workshops for productive families and supporting livestock, solar energy, and agricultural land reclamation projects. The funding distribution included 26.7 million riyals in direct cash loans, 84 million riyals in indirect cash loans through community empowerment portfolios, and approximately 1.694 billion riyals in in-kind loans.
These loans have empowered small and productive projects in rural and urban areas, significantly increasing milk production in Al Hudaydah Governorate to approximately 400,000 liters annually as part of the Dairy Value Chains Project. They have also supported livestock development and enhanced disease protection by up to 80 percent in targeted areas.
Ahmed Al-Kabsi, Head of the General Authority for Small and Micro Enterprise Development, highlighted that the interest-free loans have increased beneficiaries' commitment to their projects, preserved and grown loan assets, and ensured the sustainability of economic activities. This has allowed for the redirection of resources to support new beneficiaries.
Al-Kabsi elaborated on the "Community Empowerment Portfolios," an innovative financing mechanism launched by the Authority. These portfolios are established through local institutions and associations, which handle direct lending to beneficiaries, strengthening community partnerships and ensuring financing sustainability through recycling.
Partnerships with several institutions and associations, including the Orphan and Khairat Al-Ataa Development Foundations and the National Women's Committee in Dhamar Governorate, have been pivotal. Financial loans targeted districts such as Bani Al-Harith, Ma'in, and Al-Thawrah in the capital city, Bani Hashish district in Sana'a Governorate, Dhamar city, and Abs district in Hajjah Governorate, as well as areas on the Tihama coast.
Beneficiaries of the in-kind loans were distributed across several districts in Hodeidah Governorate, including Al-Tuhayta, Bayt Al-Faqih, and Al-Durayhimi, among others, as well as districts in Ibb Governorate. The loans have led to flexible repayment mechanisms, enhancing production within value chains in the dairy, leather, dates, and textiles sectors.
Al-Kabsi affirmed that the Authority's interventions have improved the living standards of beneficiary families, enhanced food security, and provided stable and sustainable income sources. The Authority has also made significant progress in its cotton industry development program, launching six brands in partnership with several institutions and associations in the capital.
The Authority's work over eight months with various factories and production initiatives has trained female specialists in cotton industries according to modern quality standards. This effort reflects the Authority's commitment to supporting national industries and enhancing the added value of local products.