Small and Micro Enterprises Development Program

The SFD believes in the importance of developing the small and micro-enterprises to boost national economy and improve the individuals' income. For this end, the SFD created the SMED Unit, as the first and major player in this sector in Yemen in collaboration with its partners, in order to support the provision of services of various financial and non-financial services for the relevant providers till they get the proper environment to grow and expand as well as to improve the standard of living of the poor and thus contribute to the development of society.


  • Financial institutions provide effective and sustainable financial services for the microfinance institutions (MFIs);
  • New partners and quality innovations contribute to bridging the gap of demand and encourage competition;
  • SMED organizational initiatives such as (Small and Micro-enterprises Promotion Agency SMEPS and Yemen Microfinance Network YMN... etc) are anchored properly and are provided with effective, efficient and sustainable support for the sector; and
  • Donor and intermediate institutions provide effective support for the MFIs.


Activities and services
First: Financial Services
SMED provides financial services to the MFIs and they differ depending on the service needs of each MFI.

- Grants
they are temporary grants gradually decreasing and are granted in the early years of the life cycle of the MFI that becomes capable to achieve self-reliance operationally, fulfill financial sufficiency and reach sustainability of operation. These grants are usually used to cover the considerable expenses of MFIs in the early stages of its establishment.

- Loans
SMED grants long-term loans to the MFIs to cover their needs in order to fund their loan portfolio. And these loans are given in line with the mechanisms and conditions agreed upon between the SFD and the guarantor MFI but within the SFD framework.

- Technical Support:
The SFD provides technical support to the MFIs in order to enable ti to expand and improve their service delivery.


Second: non-financial services:
These services are provided through SMEPS, subsidiary of the SFD, to facilitate the provision of non-financial services to the owners of small and micro-enterprises such as value chain analysis, training materials and training that help them develop and expand their businesses and help them develop and improve their products and create an overseas market and other services.


In the meantime, SMED provides financial support and consultancy to SMEPS and revisit their work so it can provide its services effectively and reach as many micro-enterprises owners as possible, and, therefore, contributes to develop this sector.

SMED also provides support to the following areas:

  • promoting the concept of "microfinance" in Yemen through activities such as exhibitions of annual conferences and seminars
  • Technical, social and economic studies
  • promoting best practices and advocacy for policy, regulations and national bylaws supporting this area  
  • Building the capacity of NGOs and private institutions
  • Contributing to the creation of appropriate environment for the work of the owners of micro-enterprises through advocating and contributing to the issuance of supporting laws and the drafting of the relevant national strategies.
  • adopting appropriate regulations to keep track of loans


عذراً .. سيتم بث موقع الصندوق الإجتماعي للتنمية باللغة العربية قريباً