The partnership’s overarching goal is to contribute to Yemen’s economic resilience and recovery by fostering local development and job creation. In line with the EU and IFC’s respective regional strategies and priorities for fragile and conflict-affected situations (FCS), the EU and IFC will focus on unlocking the potential of small and medium enterprises and larger businesses in key sectors of Yemen’s economy.

Recognising the vital role of Yemen’s private sector as a key driver of growth and employment opportunities, the EU and IFC will implement tailored interventions. These interventions will include supporting the manufacturing sector, enhancing food security through agri-business sector support, boosting the health sector’s capacity, expanding renewable energy opportunities, and improving urban infrastructure through Public Private Partnerships.

Likewise, the Trust Fund will also focus on strengthening the financial ecosystem in Yemen, particularly the banking sector, in order to expand access to financial, green and inclusive opportunities. Activities will be devoted to support regulatory and capacity development interventions within the financial sector, promote financial inclusion and expand financial access to underserved segments, as well as boost investment opportunities in climate finance.

A key objective of the partnership is to ensure sustainability and inclusion by promoting sustainable business practices, including environmental and social standards, and the economic empowerment of women.

In particular, the Trust Fund will seek to mobilise private capital to support climate mitigation and adaptation measures, as well as climate smart initiatives with the goal of creating an enabling environment for the green transition. Improving opportunities for women across critical sectors is a shared priority and can lead to more equitable economic and social impacts. Mobilising private sector financing for gender-smart and inclusive projects will also be a core element of the action.

Throughout its lifespan, the EU-IFC Trust Fund will support the development of bankable investments in Yemen by engaging in early stage project preparation, and the creation of investment opportunities with the goal of providing de-risking tools and addressing bankability gaps.