Economic Recovery and Livelihoods Program (ERLP) FY2021 Q4 Report

ERLP lays the institutional groundwork for sound macro-financial policy, addresses trade barriers, and promotes sustainable livelihoods, raises competitiveness, and generates employment opportunities in key sectors of the economy. ERLP Component 1, Improved Macroeconomic Functions of Key Institutions, seeks to improve macroeconomic management by strengthening the capacity of key Republic of Yemen Government (ROYG) institutions, including the Central Bank of Yemen (CBY), the Ministry of Finance (MOF), the Customs Authority, and the Port Authorities. This component aims to restore macroeconomic stability, enhance fiscal management efficiency, and increase international trade flows. During the fourth quarter of FY2021, ERLP upgraded the CBY's institutional capacity and provided technical and advisory services to enhance macroeconomic management. The program undertook coordinated action with the CBY to control monetary growth, stabilize price and exchange-rate expectations, and improve financial sector regulatory oversight. These efforts helped to gradually restore confidence in the financial system. ERLP Component 2, Improved Microeconomic Conditions, focuses on strengthening SME capacity, sustainable livelihoods, and access to finance. The program provides support to small and medium enterprises (SMEs), workforce development, and access to finance. It also promotes sustainable livelihoods through agriculture and agribusiness, fisheries, and other sectors. During Q4, ERLP implemented various activities to support SMEs, including training programs and access to finance initiatives. The program's geographic focus is on Yemen, with a specific emphasis on the Republic of Yemen Government (ROYG) institutions and key sectors of the economy. ERLP's timeframes are aligned with the FY2021 budget, with quarterly reports providing updates on program progress and achievements. The program's recommendations are based on its findings and analysis, with a focus on improving macroeconomic management, promoting sustainable livelihoods, and enhancing private-sector competitiveness. ERLP's implementation details include the provision of technical and advisory services to key ROYG institutions, as well as support to SMEs and other stakeholders. The program's methodology involves a combination of research, analysis, and capacity-building activities, with a focus on improving macroeconomic management and promoting sustainable livelihoods.