Increasing numbers of young people in Yemen are entering the job market as “necessity entrepreneurs” – engaging in self-employment activities, often in the informal economy, as a result of limited employment prospects and a rapidly expanding youth cohort.

Young people in this situation continue to have very limited access to targeted financial and non-financial business assistance which would enable them to develop and grow viable micro enterprises, which over time could grow to become employment generating and tax-paying small or medium enterprises.

Intending to address this challenge, Silatech has entered into a strategic partnership with Al-Amal Microfinance Bank, to deliver a youth targeted loan fund, designed to facilitate access of young entrepreneurs to loan capital that will help them grow and expand their business activities.

Al-Amal meaning “hope” in Arabic, is the youngest and fastest growing microfinance institution in Yemen, and the only dedicated microfinance bank in the region. It is committed to targeting the micro entrepreneurs and the active poor as clients.

The Bank fills a major gap in economic development - providing diversified financial services for cilents, under one roof. Access to financing bolsters the economy by enabling the expansion of micro enterprises and allowing them to save money. These loans help re-open shops, create jobs, and support local businesses, encouraging Yemenis to invest in their own country.

The loan fund, targeting youth ages 18-30, is a joint investment by Silatech and Al-Amal that will provide loans to more than 800 micro-entrepreneurs during an initial 24 month pilot period. It is estimated that these loans will provide close to 1000 employment opportunities to Yemeni youth.

Initially the program will target urban youth in the Sana’a and other major cities, but, following the pilot project, will scale this to loan to significant numbers of youth in rural and underserved areas of the country.

In order to maximize the impact of these loans Silatech and Al-Amal will introduce this fund as part of a holistic package of youth-focused micro and small enterprise (MSE) solutions including entrepreneurship training, business development services and access to markets.

Mohammed Allai, Executive Director of Microfinance Bank, said ‘Bringing Silatech onboard as a partner gives us the opportunity to expand our loan program targeting Yemeni youth and reach out to young entrepreneurs by providing access to capital to help them grow their businesses and increase their impact in the local marketplace.’

Rick Little, Chief Executive Officer of Silatech, said, “Tailored, youth-friendly micro-finance solutions, linked to training and business support, offer truly transformative solutions to the youth job crisis in the region. That is why I am delighted that Silatech has joined forces with the visionary Al-Amal to introduce a product which will set the standard in Yemen and the broader region in innovative youth financing”.

About Al-Amal

Al-Amal Microfinance Bank is the outcome of efforts of the Yemeni Government represented by the Social Fund for Development (SFD), the Arab Gulf Program for United Nations Development Organizations (AGFUND), and the private sector. The Bank provides poor clients engaged in productive activities (micro-entrepreneurs) with small and micro-loans to help them grow their businesses with a broad range of services that includes credit, savings and insurance.

About Silatech

Silatech is an innovative initiative engaging the private, public and civil society sectors to promote large-scale job creation, entrepreneurship, and access to capital for young people. It was intended to help address the critical issue of youth unemployment, a serious and growing challenge impacting countries throughout the world. With the support of His Highness the Emir of Qatar and Her Highness Sheikha Mozah bint Nasser Al Missned, Silatech was first announced in 2008 at the UN Alliance of Civilizations Forum in Madrid and launched in June 2008 at the Doha Summit. Silatech means “your connection” in Arabic, and its strength is in partnering with leaders, corporations and organizations around the globe to promote opportunity and innovation.