World Bank Grants $30M to Yemen for Digital Finance and Education Recovery

In a significant move to support Yemen’s fragile population amid protracted conflict and institutional collapse, the World Bank’s Board of Executive Directors has approved US$30 million in new grants to help bolster digital financial infrastructure and sustain access to education in the country’s most disadvantaged areas. The funding is part of a broader commitment by the World Bank to deliver urgent services, preserve human capital, and lay groundwork for long-term recovery.

The package supports two new projects designed to promote inclusive service delivery and institutional resilience:

• US$20 million for the Yemen Financial Market Infrastructure and Inclusion Project, to be implemented by the United Nations Development Programme (UNDP).

• US$10 million for the Sustaining Education and Learning Project, implemented by the United Nations Children’s Fund (UNICEF).

“These new operations reflect our continued commitment to supporting the people of Yemen in meeting their most urgent needs,” said Dina Abu-Ghaida, World Bank Group Country Manager for Yemen. “By investing in core infrastructure that enables children to stay in school and families to access financial services, we aim to preserve human capital and support more inclusive, resilient service delivery.”

Yemen’s Fragile State: A Crisis of Services and Human Capital

Yemen remains one of the world’s most conflict-ridden and impoverished nations, with over a decade of civil war severely eroding public institutions and cutting off access to basic services. Over 60% of Yemeni households report inadequate food consumption, and millions face limited access to education, healthcare, and formal financial systems.

Women, children, and rural communities have been especially impacted by infrastructure collapse, rising poverty, and social exclusion. The World Bank’s renewed support targets these vulnerable groups with a strategy focused on service continuity, digital resilience, and gender equity.

Digital Financial Inclusion: A Critical Lifeline for Vulnerable Households

The Yemen Financial Market Infrastructure and Inclusion Project aims to modernize and expand the country’s digital financial ecosystem through a multi-pronged approach. It will:

• Develop a Fast Payment System and a Real-Time Gross Settlement System (RTGS) under the Central Bank in Aden, facilitating safer and faster transactions.

• Strengthen regulatory compliance, especially regarding anti-money laundering and counter-terrorism financing.

• Promote interoperability between financial institutions to ensure broader access to services.

• Expand access points in underserved rural and conflict-affected areas, empowering people who lack traditional banking options.

• Enable digitization of cash transfers, government payments, and remittances, which serve as essential income streams for millions of families.

Digital infrastructure is critical in Yemen, where physical banking networks have been disrupted by conflict, and remittances remain a vital economic lifeline.

Keeping Classrooms Open: Investing in Yemen’s Education Amid Crisis

The Sustaining Education and Learning Project will directly address the deterioration of the public education system in the most vulnerable districts. It will:

• Rehabilitate damaged school facilities, construct new classrooms, and install WASH (Water, Sanitation, and Hygiene) infrastructure.

• Provide school operational grants, managed by local community councils, to help maintain basic educational services.

• Strengthen education data systems and build local institutional capacity to plan and monitor service delivery effectively.

• Place a special focus on girls’ education, particularly in rural and hard-to-reach areas, where access to schooling remains deeply unequal.

UNICEF will leverage its deep operational presence in Yemen to implement this initiative and build on lessons learned from previous education recovery programs.

Toward Stability: A Strategy Rooted in People and Infrastructure

These projects are part of the World Bank’s broader Country Engagement Strategy for Yemen, which focuses on:

• Preserving essential services like education, health, and food security.

• Protecting and building human capital, especially for vulnerable populations.

• Strengthening institutions and preparing for future recovery, peacebuilding, and economic reactivation.

The Bank’s emphasis on partnerships with UN agencies, such as UNDP and UNICEF, ensures the efficient deployment of resources in high-risk and conflict-affected environments.

Looking Ahead: Building Blocks for Recovery

Though Yemen’s challenges remain immense, these new investments signal a determination to safeguard development gains and empower communities with tools for resilience. By advancing digital financial inclusion and educational access, the World Bank and its partners are not only responding to today’s crisis—but also planting seeds for tomorrow’s peace, stability, and prosperity.