Silatech Strengthens Engagement in Yemen

Doha, June 19 (QNA) - A delegation from Silatech has returned from Yemen after meeting with the country’s president and other dignitaries, and launching an innovative new program designed to encourage savings among young people. Based in Qatar, Silatech is a regional social initiative that works to improve employment and entrepreneurship opportunities for young people throughout the Arab world. On Sunday, June 16, Yemeni President HE Abdo Rabbo Mansour received Silatech CEO Dr. Tarik M. Yousef, who briefed the President on the launch of a number of new initiatives and the expansion of existing programs between Silatech and its Yemeni and international partner organizations. President Mansour pointed to the need for international and regional cooperation to reduce poverty and unemployment in Yemen, and expressed his appreciation for the efforts of Silatech and partners, including Al Amal Microfinance Bank. Silatech representatives also met on Sunday with officials from the Ministry of Planning and International Cooperation including Minister HE Dr. Mohammed Al-Sadi, as well as with Minister of Technical Education and Vocational Training HE Mr. Abd al-Hafiz Nu'man, with whom they discussed the potential to restart Silatechs skills training programming in the country. During its pilot phase, the SilaQual program provided over 1500 Yemenis with international standard construction skills training. The program was put on hold in April 2012 due to the political crisis in Yemen. On Monday, June 17, Silatech, the Yemen Microfinance Network, the German Agency for International Cooperation (GIZ), Al Kuraimi Islamic Microfinance Bank, and Al Amal Bank launched a campaign called "Youth Savers" to promote financial literacy and encourage youth savings for low income Yemenis between 16-30 years of age. This "Youth Savers" campaign combines the provision of dedicated Youth Savings Accounts from Al Amal Microfinance Bank and Al Kuraimi Islamic Microfinance Bank with an extensive promotional campaign led by the Yemen Microfinance Network, which will also incorporate key messages to youth stressing the benefits of savings, as well as motivating young people to save more. Furthermore, GIZ will lead on the provision of financial literacy training for youth including such essentials as effective money management, budgeting and the importance of savings. The expected impact of the initiative is to help young people learn smart financial habits early on in life, as well as to increase their assess to savings accounts that will help them accumulate capital for starting a business, getting married, or help in other important life stages. By the end of 2014, the Yemen program is expected to provide at least 10,000 Yemeni youth with specially designed youth savings accounts, as well as financial literacy training that will be delivered to another 10,000 young people. Dr. Tarik M. Yousef, CEO of Silatech, said: "Micro-savings are widely recognized as driving financial inclusion by providing an entry point into the formal financial sector, reducing vulnerability to economic shocks, evening out irregularities in income, and creating collateral for lending to support business start-up and growth. However, the MENA region has the world’s lowest levels of access to formal savings instruments. Therefore, creating and expanding youth savings opportunities in the MENA region is a major goal for Silatech, and this initiative in Yemen is highly strategic for this region." According to the World Bank, only around 13 percent of people 15-24 in the Middle East and North Africa (MENA) region have accounts at formal financial institutions, compared to the worldwide average of 37 percent. Linking "unbanked" young people into a formal financial network is a crucial step to building the assets of young people, financing the development of microenterprises, and increasing the employability of young people. Youth unemployment in the Arab world stands at 25 percent, the highest of any region in the world. Other Yemeni dignitaries meeting with the Silatech delegation included Mr. Abdul-Qader Hilal (Mayor of Sanaa), Mr. Alwan Al Shaibani (Chairman of Universal Group), Mr. Yousuf Al Kuraimi (Managing Director of Al Kuraimi Islamic Microfinance Bank), Mr. Ismail Mahmoud Al-Jailani (General Manager of QNB Yemen), and Mr. Mohanad Al Maktary (Deputy General Manager, Al Amal Microfinance Bank). In addition to CEO Dr. Tarik M. Yousef, the Silatech team included Yemen Country Representative Dr. Mohammed Al Maitami, Mr. Martin Roeske (Chief Programs Officer), Mr. Justin Sykes (Director of Microenterprise) and Mr. Nader Kabbani (Director of Research and Policy). Silatech is a Qatar-based social initiative that works to create jobs and expand economic opportunities for young people throughout the Arab world. The organization promotes large-scale job creation, entrepreneurship, access to capital and markets, and the participation and engagement of young people in economic and social development. Founded in 2008 by Her Highness Sheikha Moza bint Nasser, Silatech finds innovative solutions to challenging problems, working with a wide spectrum of development organizations, governments and the private sector to foster sustainable, positive change for Arab youth. (QNA)