“In any society you need loans to be part of the economic activities, and that is something we are trying to improve in Yemen. If that succeeds, Yemenis will have the ability to take long term loans and start a future for themselves, instead of having to wait for others to help them.”

Yemen Post: What programs does the IFC have in Yemen?

JK: Well, IFC does two things in Yemen. One is investment work, where we provide investment capitals while the other is working to provide consultancy and advice to the private sector and the government.

YP: What kind of consultancy or business do you give the country?

JK: In terms of consultancy, we activate in different areas. One thing we do is help the government improve the investment environment and make investments easier in Yemen. For example, we are working with the government, and to be specific with the Ministry of Industry and Trade to make it easier for locals to start a business. It is called a business startup simplification project which basically looks at reducing the procedures related to starting a business. Our experience from across the world shows that by reducing the process to start a business, you will have more business, therefore, more businesses will be brought to the formal sector. This will create more jobs for a large number of unemployed Yemenis.  

YP: Yemen's loans are increasing and not decreasing, from your point of view, why is that happening?

JK: I think if we look at the private sector, one of the things we observed here in Yemen is that the financial sector is not well developed. The capital base of the banking sector is rather limited when comparing to other countries. One of the things that is fundamental in a good economy is how easy it is for people to go to a bank, get a loan, and get some capital to start a business to expand their business. So in any society, you need loans to be part of the economic activities, and that is something we are trying to improve in Yemen. If that succeeds, Yemenis will have the ability to take long term loans and start a future for themselves, instead of having to wait for others to help them. 

YP: Does the Yemeni government cooperate well with IFC?

JK: Very much. We are very encouraged by the support we get from the government in Yemen, and we have seen great cooperation. 

YP: From which angle does the government lack in cooperation?

JK: Well, the government is doing, in my view, the best it can to accommodate what we are trying to do in the country. I really have no complaints. 

YP: There are only a small number of foreign investments in Yemen currently. People expected the number of investments to increase during the last five years, but a very limited increase has been witnessed. Why?

JK: It is difficult to point one specific reason why no foreign investments are coming. We are working very actively in several fronts with the government to try to make Yemen a more friendly environment for investors. Obviously, when international investors look at where to place their investments, they look at the local conditions and how easy is it to engage their business along with other things like stability and security. We in specific, are working on helping the government to attract foreign investments, but progress needs time and investors need to see and observe the progress the country is making.

Investment has been easier for investors is the mining sector where we are trying to make the policy in the mining sector more friendly for foreign investors, and until now we have seen strong progress.

YP: The percentage of improvement in the business sector in Yemen over the last five years, how much can you estimate it?

JK: Well. If we look at international reports on business it will show you exact results and where Yemen stands. These reports were issued by the World Bank and IFC together. The report ranks 178 countries in the world in terms of how easy it is to do business. Currently, Yemen ranks 113 out of 178. So it is in the lower end of the list. We are working very actively with the government to try to improve that, and I can tell you one specific activity that can improve the current situation and that is to reduce the minimum capital requirements for starting a business. We certainly expect to see progress in how easy it will be to start a business in Yemen in the near future.

YP: The number of projects for IFC in Yemen, How many?

JK: We are currently doing four projects in Yemen. Last year IFC invested more than $100 million in Yemen. 

YP: In which sectors?

JK: In the financial, manufacturing, and agriculture sectors. This year we will be investing another $100 million mainly in the financial, health and education sectors.

YP: The money that is given, is it as a loan to the country or a free fund?

JK: These are pure commercial investments. We invest with private sector investors so if a company wants to invest in Yemen, they come to us and we cooperate with them in making sure that the business environment is good for them.

YP: Do you see an increase of projects for IFC in Yemen in the near future?

JK: For sure. We are putting a lot of focus and emphasis on business and financial  activities in Yemen. We are also trying to build a bigger team for our office here in Yemen. We currently have 15 people in our office now, and we will be increasing soon. Yemen is a very important country for us in this region and we are working hard to try to increase our activities. 

YP: Do you have any final comments?

JK: We are encouraged in Yemen by two things. One is that we see more economic activity. We certainly see a good approach from the private sector, which is increasing and looking outside Yemen’s border for partners in investment. We also noticed foreign investors looking with keen interest at Yemen, especially from gulf countries, which is very encouraging. I believe that bringing foreign investors will not only bring money to the country,  but it will also bring modern business practices and will in the end help the country and people. Secondly, Yemen has to make it easier to invest so that not only big companies and projects can invest in the country, but also small businesses by locals can be easily run and started.