Considered the poorest country in the Middle East and North Africa (MENA) region, years of conflict have left Yemen’s economy with a myriad of challenges. The civil war has caused widespread damage to vital economic infrastructure, severely limited food and fuel imports, accelerated inflation and halted Yemen’s exports.
The collapse of the Yemeni economy, combined with the impact of the war on the rapidly growing population, is severe. Enabling vital central economic institutions, such as the Central Bank of Yemen or the Ministry of Finance, to function effectively and coherently, represents a precondition for economic recovery and macro-economic stability. Engaging these institutions in a targeted capacity building exercise is crucial to rebuild a viable and resilient economy.
The need for economic reconstruction requires developing a vibrant private sector. Apart from income-generation and job creation, the private sector provides the delivery of important goods and services. This is of critical importance to improved food security and nutrition in Yemen. Enabling the private sector to become more resilient can manifest in communities becoming better able to deal with risks and shocks by increasing economic self-reliance.