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AFD Group activity in Yemen

AFD Group has been authorised to operate in Yemen since the country became part of France’s Priority Solidarity Zone (PSZ) in February 2002. Prior to the opening of an agency, until the autumn of 2007 AFD’s activities in Yemen were supervised by AFD’s regional agency for the Horn of Africa based in Djibouti.

AFD opened an agency in Sana’a in November 2007. The Establishment Agreement was signed on 4 December 2007.

1. Strategy and prospects for AFD operations

In March 2007, the French Minister for Cooperation signed a Partnership Framework Document (PFD) between France and Yemen in Sana’a for the period 2007-2011.

The PFD provides for:

the French Embassy in Sana’a to continue activities in cross-cutting sectors: governance, cultural diversity, academic and scientific cooperation.
enhanced French cooperation in the sectors of agriculture and food security on the one hand, and infrastructure on the other hand.

AFD’s operations in Yemen under its sectoral competences consequently focus on these two sectors: agriculture and infrastructure.

2. AFD operations in Yemen

AFD operates in its two concentration sectors:

- Agriculture:

the PADZEY project that aims to increase income for small-scale livestock farmers in two agricultural regions: Wadi Mawr (Tihama) and Taez.
Local financing for a small amount, in the form of a €715 000 grant, which was signed with the NGO Triangle on 21 January 2009 to support the development and promotion of sustainable agriculture adapted to its environment on Socotra Island.

- Electricity infrastructure with the SCADA project, financed by a €26M loan signed on 17 November 2008 with the Yemeni State for the modernisation of the distribution network.

The environment with €1M of French GEF financing in the form of a grant allocated on 1 July 2008 for a project to preserve marine biodiversity on Socotra, an island which has just been listed as a World Heritage Site by UNESCO.

Finally, a Study and Capacity Building Fund (SCBF) in the form of a €1M grant was signed in late 2007 with the Yemeni authorities to finance the identification and preparation of future projects. An initial contract for an environmental and social impact assessment has already been signed for the preparation of the rural electrification project.

3. AFD operations in Yemen in figures

A total of €31.6M has been allocated to Yemen by AFD in the form of grants and loans: