The
Objectives of the SMED Program is to increase the income
of the poor and create new job opportunities. The mean to
achieve these is to help improve the capacity of local organizations
to provide financial services to small and micro enterprises.
Financial
Services
Small
enterprise lending:
Surveys, like the Baseline Survey for Small and Micro Enterprises
( SMES) in Yemen – 2000, confirm the need of SMES
for finance: SFD's policy is to work with existing organizations
( Banks, NGO's, …etc) to provide credit to SMES. Recently
SFD started a program to support the Small Enterprises Development
Fund ( SEDF ). The program is expected to improve SEDF's
capacity to provide services to more small entrepreneurs.
Microfinance
SFD
was the first organization in Yemen to help introduce Microfinance.
Since its establishment SFD has adopted a policy to use
the internationally known best practices in the field of
microfinance. The objective of SFD's Interventions is to
help improve the capacity of local organizations to provide
sustainable microfinance services. SFD provides grants for
set up, training, and TA. It also provides loans to be used
for on lending.
SFD's
Policies in supporting Microfinance
Institutions
interested in establishing and running microfinance services
should file requests for financing to SFD. SFD also promotes
microfinance in selected areas and helps carry appraisal
studies.
Topics
for Microfinance Screening
Economic Landscape
Determines Investment opportunities and the quality of
infrastructure and markets.
Financial Landscape
Provides Information on the financial services that are
in place.
Institutional Landscape
Provides information on organizations, agencies, projects,
and other programs that support development.
Cultural landscape
Enumerates items that have an influence on the performance
of the scheme.
How
It works
The
MF intermediaries are free to design their MF products as
long as they follow the best practices in the field. Some
follow individual lending, other use group lending; some
charge direct service fee, while others use Islamic Murabaha
or Musharakah. SFD provides support in the form of training
and technical assistance to the intermediaries.
Roles
Intermediary's Role
The intermediary is the implementing partner. It signs
the contracts with SFD, recruits staff, and supervises
the implementation.
SFD's Role
SFD provides funds according to the agreements. It supervises
implementation and provides technical assistance.
