Sana'a - Saba:
Given its potential for tangible economic results, the Value Chain Management Program is considered one of the most important strategic projects pursued by the Government of Change and Development to reduce the import bill and achieve self-sufficiency.
This program draws its significance from its direct connection to the foundational pillars of a resilient economy, including production and industrial processes. These, in turn, contribute to empowering and improving living standards for a broad segment of the population — farmers, marketers, traders, manufacturers, and others — especially in rural and urban areas, through the employment opportunities it creates.
The launch of the Value Chain Management Program by the government aligns with a national vision, leveraging Yemen's vast and promising potential. If fully activated, this potential could bring substantial benefits to the people, provided the responsible authorities succeed in mobilizing the latent capacities of both the national economy and local communities.
The revolutionary and political leadership, along with the government, fully recognize that success in this endeavor requires a genuine and effective partnership with the private sector and the community. All efforts must be unified to steer the country towards self-reliance and sustainability.
Accordingly, the government seeks to give stronger weight and influence to the economic sector in the coming stages, in line with the current challenges and the catastrophic consequences of ten years of aggression and blockade.
As part of its broader plan, the Government of Change and Development has prioritized the community-based economy as the main driver of developmental and economic growth. From this, the Economic Stimulus Program for the next five years was born.
The Ministry of Administration and Local and Rural Development plays a pivotal role by coordinating and networking the efforts of various government bodies, local authorities, and communities. It also plays a vital part in mobilizing, motivating, and organizing community initiatives.
Based on this role, the ministry’s leadership is highly focused on activating local authorities’ role in encouraging community participation, with special attention to economic and social aspects and in awakening the community’s capabilities and energies to achieve local and rural development.
The Value Chain Management Program is built on the principles of a resilient and service-based economy, with key success factors including the activation of currently unused capacities within the national economy — all while taking into account the country’s current conditions under aggression and siege.
Experts consider Value Chain Management one of the most effective strategies for resilience in the face of Yemen’s current crises and difficult economic situation.
In its initial stages, the program focuses on more than 42 categories of locally grown agricultural goods and raw materials, aiming to stimulate industrial growth. The program represents a major initiative of the Government of Change and Development, especially considering the annual import bill which reaches up to $15 billion.
The Value Chain Management Program stems from the Economic Empowerment Project, itself part of the broader Economic Stimulus Program adopted by the government. This included issuing a new Investment Law, which, alongside the empowerment project and its key programs such as value chain management, aims to deliver tangible economic impact.
Within this framework, the National Economic Empowerment Committee was established, chaired by Deputy Prime Minister and Minister of Administration and Local and Rural Development, Mohammed Al-Madani. The committee has made significant strides in implementing stimulus programs focused on value chains and reducing the import bill.
Under the value chain approach, eight major programs and projects have been approved. The first involves support for the textile industry, a promising sector that can absorb large numbers of workers. This includes full tax and fee exemptions for all related factories and facilities, starting from cotton production to ginning and textile manufacturing, aiming for significant economic empowerment.
The second value chain focuses on dairy production, which is expected to expand across agricultural basins such as Qaa al-Bawn, Jahran, Rasabah, Qaa al-Haqel, Yareem, Kutab, and Al-Sahoul in Ibb, reaching Al-Qa’idah and Al-Hawban in Taiz. The focus will be on infrastructure including small and medium collection centers and refrigerated transport systems, leading to higher product quality.
The third chain targets the production of food items based on local agricultural inputs, including the production of halawa tahini (sesame sweet), especially after the success of white sesame cultivation in Yemen. The fourth involves juice production, with a focus on concentrate manufacturing plants to help address surplus issues during harvest seasons.
Other value chains also include support for small and micro industries, as well as leather industries, where Yemen possesses great potential due to the availability of raw hides. Currently, Yemen exports these materials, and there is significant room for growth in domestic leather production.
Further emphasis is placed on supporting and protecting local products, enabling businesses to expand their operations and improve product quality to levels that allow them to compete with imported alternatives.
In this context, the Ministries of Economy, Industry and Investment, and Finance play a key role in implementing localization and protection policies for local products. They are also working to ease procedures for the private sector, which is seen as the cornerstone and main partner in achieving the desired economic growth.
The Investment Law has been a qualitative addition to this path, offering a new vision from the state — with the backing of the revolutionary and political leadership — to open wide opportunities for national capital in both public and private sectors to enter investment projects with unprecedented incentives and full guarantees. It provides strong support for national industries and high protection for local products, with the goal of advancing the industrial sector through value chain management and reducing the import bill.
The strategy to support national industries and protect local products also encourages food industries to use local raw materials. This helps create industrial production activity that supports and develops investments in agriculture and livestock by leveraging the advantages, facilities, and incentives offered by the new Investment Law.
The Government of Change and Development has already approved the Economic Stimulus Program, which includes various tracks and goals. Among its most important are industry localization and local product protection, aiming to significantly increase job opportunities, reduce unemployment, and provide high-quality, competitively priced national products. This effort is accompanied by decisions to protect and localize several new goods in support of local industries.
To develop local factories' productive capacities and protect their products, the government has adopted well-studied steps, including decisions to protect national products, enhance consumer trust, and establish a genuine partnership with the private sector — considered the key guarantee to achieving the desired economic objectives.
Given its potential for tangible economic results, the Value Chain Management Program is considered one of the most important strategic projects pursued by the Government of Change and Development to reduce the import bill and achieve self-sufficiency.
This program draws its significance from its direct connection to the foundational pillars of a resilient economy, including production and industrial processes. These, in turn, contribute to empowering and improving living standards for a broad segment of the population — farmers, marketers, traders, manufacturers, and others — especially in rural and urban areas, through the employment opportunities it creates.
The launch of the Value Chain Management Program by the government aligns with a national vision, leveraging Yemen's vast and promising potential. If fully activated, this potential could bring substantial benefits to the people, provided the responsible authorities succeed in mobilizing the latent capacities of both the national economy and local communities.
The revolutionary and political leadership, along with the government, fully recognize that success in this endeavor requires a genuine and effective partnership with the private sector and the community. All efforts must be unified to steer the country towards self-reliance and sustainability.
Accordingly, the government seeks to give stronger weight and influence to the economic sector in the coming stages, in line with the current challenges and the catastrophic consequences of ten years of aggression and blockade.
As part of its broader plan, the Government of Change and Development has prioritized the community-based economy as the main driver of developmental and economic growth. From this, the Economic Stimulus Program for the next five years was born.
The Ministry of Administration and Local and Rural Development plays a pivotal role by coordinating and networking the efforts of various government bodies, local authorities, and communities. It also plays a vital part in mobilizing, motivating, and organizing community initiatives.
Based on this role, the ministry’s leadership is highly focused on activating local authorities’ role in encouraging community participation, with special attention to economic and social aspects and in awakening the community’s capabilities and energies to achieve local and rural development.
The Value Chain Management Program is built on the principles of a resilient and service-based economy, with key success factors including the activation of currently unused capacities within the national economy — all while taking into account the country’s current conditions under aggression and siege.
Experts consider Value Chain Management one of the most effective strategies for resilience in the face of Yemen’s current crises and difficult economic situation.
In its initial stages, the program focuses on more than 42 categories of locally grown agricultural goods and raw materials, aiming to stimulate industrial growth. The program represents a major initiative of the Government of Change and Development, especially considering the annual import bill which reaches up to $15 billion.
The Value Chain Management Program stems from the Economic Empowerment Project, itself part of the broader Economic Stimulus Program adopted by the government. This included issuing a new Investment Law, which, alongside the empowerment project and its key programs such as value chain management, aims to deliver tangible economic impact.
Within this framework, the National Economic Empowerment Committee was established, chaired by Deputy Prime Minister and Minister of Administration and Local and Rural Development, Mohammed Al-Madani. The committee has made significant strides in implementing stimulus programs focused on value chains and reducing the import bill.
Under the value chain approach, eight major programs and projects have been approved. The first involves support for the textile industry, a promising sector that can absorb large numbers of workers. This includes full tax and fee exemptions for all related factories and facilities, starting from cotton production to ginning and textile manufacturing, aiming for significant economic empowerment.
The second value chain focuses on dairy production, which is expected to expand across agricultural basins such as Qaa al-Bawn, Jahran, Rasabah, Qaa al-Haqel, Yareem, Kutab, and Al-Sahoul in Ibb, reaching Al-Qa’idah and Al-Hawban in Taiz. The focus will be on infrastructure including small and medium collection centers and refrigerated transport systems, leading to higher product quality.
The third chain targets the production of food items based on local agricultural inputs, including the production of halawa tahini (sesame sweet), especially after the success of white sesame cultivation in Yemen. The fourth involves juice production, with a focus on concentrate manufacturing plants to help address surplus issues during harvest seasons.
Other value chains also include support for small and micro industries, as well as leather industries, where Yemen possesses great potential due to the availability of raw hides. Currently, Yemen exports these materials, and there is significant room for growth in domestic leather production.
Further emphasis is placed on supporting and protecting local products, enabling businesses to expand their operations and improve product quality to levels that allow them to compete with imported alternatives.
In this context, the Ministries of Economy, Industry and Investment, and Finance play a key role in implementing localization and protection policies for local products. They are also working to ease procedures for the private sector, which is seen as the cornerstone and main partner in achieving the desired economic growth.
The Investment Law has been a qualitative addition to this path, offering a new vision from the state — with the backing of the revolutionary and political leadership — to open wide opportunities for national capital in both public and private sectors to enter investment projects with unprecedented incentives and full guarantees. It provides strong support for national industries and high protection for local products, with the goal of advancing the industrial sector through value chain management and reducing the import bill.
The strategy to support national industries and protect local products also encourages food industries to use local raw materials. This helps create industrial production activity that supports and develops investments in agriculture and livestock by leveraging the advantages, facilities, and incentives offered by the new Investment Law.
The Government of Change and Development has already approved the Economic Stimulus Program, which includes various tracks and goals. Among its most important are industry localization and local product protection, aiming to significantly increase job opportunities, reduce unemployment, and provide high-quality, competitively priced national products. This effort is accompanied by decisions to protect and localize several new goods in support of local industries.
To develop local factories' productive capacities and protect their products, the government has adopted well-studied steps, including decisions to protect national products, enhance consumer trust, and establish a genuine partnership with the private sector — considered the key guarantee to achieving the desired economic objectives.