The global objective of this Call for proposals is to support the transition of Yemen to a non-oil economy through the creation of an environment conducive to private sector development, and ultimately to support the country's overarching objective of poverty reduction and job creation. The specific objective of this Call for Proposals is to support the development of inclusive financial systems targeted to the needs of Micro, Small, and Medium Enterprises (MSMEs) by increasing the availability and effectiveness of financial instruments (loans, credit lines, or other financial products) for meeting MSME borrowers’ working capital needs.

This action includes two sub-components:

1. Financing of capital for on-lending operations to existing local Financial Institutions that (already or plan to) provide financial services to MSMEs
2. Supporting the institutional strengthening and capacity building of existing local Financial Institutions (Fis)

Types of action

• Setting up a revolving fund for on-lending to FIs that provide financial services to MSMEs. In addition to a general credit line for MSMEs, the applicant is encouraged to propose innovative ways to support the participation of youth and women entrepreneurs.
• Supporting capacity and institutional building of Financial Institutions (FIs), to improve the institutional capacity and operational efficiency of the participating institution(s), and expanding their outreach and operations.
• Implementing the Exit Strategy. The applicant should propose a detailed Exit Strategy in line with the indication provided in these Guidelines (see note no 1 on p.5). The implementing body (awarded under the call for proposals) will seek to transfer the management of the revolving fund created under the Capital for on-lending component to a local institution that specialises in providing financial services to MSMEs in the local context. The local financial institution must be a public or semi-public Financial Institution or similar body.

The Community provisional funding available for the call for proposals is:

• 6,55 Million EUR (Global Budget)

• 12 July 2012 - 13 years ago (Deadline for the presentation of proposals)

• Official page of the Call

• Call fiche EuropeAid/132890/L/ACT/YE (Guidelines for applicants)

Opened to the following bodies or institutes with legal status established in the covered areas:

• Local authorities
• Regional authorities
• Any legal organisation
• Non-governmental organization
• Universities

Bodies or institutes must have their registered legal seat in one of the countries taking part in the Programme which are:

• Third countries

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