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Synopsis:
This market assessment, conducted in the governorates of Taizz, Al Dhale'e, and Lahj in Yemen by the Cash Consortium of Yemen, with funding from the European Union, highlights a challenging economic situation for the country’s most vulnerable groups, particularly internally displaced persons (IDPs) and women. Based on 900 household surveys and extensive qualitative research, the study reveals that livelihoods are largely informal, low-skilled, and unstable, with daily wage labour being the primary source of income. IDPs, who constitute 71% of the respondents, face even greater obstacles: 85% own no significant assets, and 61% of all surveyed households lack access to financial services, with formal loans and credit largely inaccessible due to insufficient collateral and documentation.
Women are doubly marginalised, with an illiteracy rate of 58% compared to 43% for men, limited decision-making power, and severe mobility restrictions due to cultural norms. Most women are confined to home-based, low-income work such as tailoring and handicrafts, while caregiving duties further restrict their economic participation. Despite these challenges, there is a strong desire for change: 94% of respondents are eager to pursue income-generating activities that align with community-identified gaps in local products and services, presenting real opportunities for targeted interventions. Specifically, 47% of respondents reported gaps in agricultural skills, particularly in areas like first-aid veterinary skills, animal husbandry, disease control, and feeding methods for livestock. There are also persistent knowledge gaps in climate-smart agriculture (CSA) and natural resource management (NRM).
Livestock rearing and beekeeping are identified as high-potential sectors, especially in rural areas, while crop diversification and climate-smart agriculture provide resilience against water scarcity and climate shocks. Women’s participation in these promising sectors is culturally accepted and increasing. Emerging fields such as mobile repair, solar technology, beauty services, and car/motorbike repair offer new opportunities for youth and women, provided that training and capital are made accessible.
Significant barriers persist, including a lack of skills, poor infrastructure, unreliable energy, and discrimination against IDPs and ethnic minorities, all of which undermine economic resilience. Climate change and conflict exacerbate these issues, disrupting agriculture and market access. However, the assessment identifies clear pathways forward: expanding vocational training tailored to literacy levels, enhancing women's inclusion in higher-value sectors, improving access to finance, and investing in climate-smart agriculture and infrastructure. By addressing these systemic barriers and leveraging community aspirations, aid actors can unlock inclusive and sustainable growth for Yemen's most vulnerable populations.
Examine the full report for a thorough understanding of the challenges and actionable solutions that can contribute to shaping Yemen’s economic future.