USAID Yemen Economic Growth, Recovery, Livelihoods and Agriculture Fact Sheet

Speeches Shim

A Yemeni farmer
Ahmed, a farmer in Dhamar, Yemen, is a recipient of a USAID-facilitated loan.
Pragma Corporation for USAID

USAID is strengthening the Central Bank of Yemen (CBY) and the Ministry of Finance (MOF) to stabilize and create a productive macroeconomic environment, while at the same time supporting business at the local level.

Yemen is suffering the most severe humanitarian crisis in the world, exacerbated by its ongoing conflicts. USAID development assistance in Yemen accelerates the relief-to-development continuum and strengthens Yemen’s resiliency through programs that build critical macroeconomic institutions that underpin political stability. USAID/Yemen’s economic portfolio creates tangible opportunities for people to invest their labor and local resources to create value and employment opportunities.

Since the beginning of the civil war in 2014, Yemeni households have seen their incomes slashed, while prices of basic foodstuffs and essential commodities have risen. Economic activities have virtually ground to a halt. Oil and gas production and exports are at a fraction of pre-crisis levels. Exports fall far short of covering Yemen’s food imports - which amount to 90 percent of all food consumed in Yemen - and the banking system is in turmoil. The UN estimates at least 55 percent of the workforce has been laid off since the civil war began and over a quarter of businesses have closed. Diminished purchasing power and a dysfunctional agricultural sector have rendered millions of Yemenis food insecure. COVID dealt another blow to Yemen’s economy. Reduced oil prices, Yemen’s primary export, and reduced remittances during the global economic downturn added to the country’s economic struggles.

USAID’s Response and Expected Results

USAID, in partnership with  the private sector, is working to ensure that job creation and income enhancing opportunities reach a broad spectrum of Yemenis, including women, youth, and ex-combatants. USAID supports the Republic of Yemen Government (ROYG) in advancing macroeconomic reforms critical to stabilizing the collapsing economy and reestablishing a functioning trade regime. Activities include capacity-building in the Central Bank of Yemen (CBY) and the Ministry of Finance (MOF), as well as facilitating the flow of commercial and humanitarian goods and services through Yemen’s borders and ports. USAID also directly supports small and medium-sized enterprises (SMEs) to improve fish and farm productivity and establish linkages to domestic and international markets. Ultimately, USAID helps to increase employment and incomes of Yemeni households and sustain their livelihoods.

The Economic Recovery and Livelihoods Program (ERLP) strengthens key institutions in Yemen to improve economic growth and stability, and raises household income by supporting small and medium-sized enterprises, especially in the agricultural and fisheries sectors. The program builds the capacity of economic institutions administered by the Republic of Yemen Government – most critically the CBY, MOF, Yemen Customs Authority, and port authorities. These interventions improve public budget management, increase international commercial trade flows, and enable more humanitarian goods to reach vulnerable populations in Yemen.

Current activities build on the achievements of the Yemen Economic Stabilization and Success (YESS) program, which over three years expanded employment opportunities for more than 3,500 Yemeni youth through job creation and placement, provided livelihoods support to more than 7,500 farmers, launched a breakthrough initiative to facilitate trade at the Aden port, and advised the CBY during the implementation of major macro-financial reforms. Technical assistance to the CBY continues through a multi-donor effort to restore transparent management of the financial sector and improve liquidity conditions by strengthening key central banking functions, such as currency management and foreign exchange operations. Ensuring sustainability of economic reforms is fundamental for Yemen’s long-term resilience.

To support Yemen during the COVID-19 pandemic, USAID increased support to SMEs manufacturing personal protective equipment, antibacterial cleaners, and sanitizing products helping meet local demand while creating jobs and increasing incomes. Through workforce development activities tailored to COVID-19 preparedness and response, USAID supported the training and placement of over 1,100 health care workers in critical positions in public and private hospitals.

Last updated: December 02, 2021

Share This Page