Yemen: World Bank Group Launches New Country Partnership Framework and Projects to Support Better Livelihoods and More Jobs Amid Fragility

Amman/Washington, June 4, 2026 - The World Bank Group's Board of Executive Directors today approved a new Country Partnership Framework (CPF) for the Republic of Yemen for fiscal years 2026-2030, alongside four new operations totaling US$285 million, marking a new phase in the World Bank Group's long-standing commitment to the people of Yemen.

The new Partnership Framework, titled "Better Livelihoods and More Jobs Amid Fragility", outlines the World Bank Group's strategy to support Yemen over the next five years. It comes at a defining moment: a decade of conflict has shrunk real GDP per capita by 58 percent, pushed more than three-quarters of the population into poverty, and left half of Yemen's children stunted. Yemen's private sector has been an important source of resilience, and key sectors such as agriculture and fisheries offer growth and jobs potential, which the new CPF is designed to build upon and strengthen.

"Yemen's future has to be built now," said Stéphane Guimbert, World Bank Division Director for Egypt, Yemen and Djibouti. "This means creating real opportunities for Yemenis, especially women, and strengthening the institutions that will carry the country forward. We are investing in the capacity of Yemeni women and men themselves to shape their own future."

The new framework focuses on three core outcomes: improving nutrition; expanding access to electricity; and strengthening agribusiness, mariculture, and fisheries. These outcomes build on a strategic shift in the World Bank Group's approach towards greater selectivity, partnership, and localization - the latter with deepening investment in Yemeni institutions, companies, and domestic delivery systems as the cornerstone of sustainable recovery for all Yemenis.

A key cross-cutting enabler is to increase the participation of women in society and the economy. The CPF follows a coordinated approach in this regard: stabilizing household consumption and nutrition, improving women's access to services, including energy and finances, and linking women to sustainable livelihoods and market opportunities.

The private sector is equally central to the CPF's ambitions: the World Bank Group is working to create the conditions for Yemeni businesses to grow and to attract investment, including by the Yemeni diaspora.

"In the past several years, Yemen's private sector has been a critical pillar of economic resilience," said Khawaja Aftab Ahmed, Division Director for the Levant, Iraq, and Yemen, IFC. "IFC's engagement in Yemen reflects our confidence in the ability of the private sector to continue driving growth and creating jobs. From agribusiness to energy, we see significant opportunities for Yemeni businesses to serve as engines of recovery for their communities and catalysts for a better future."

The four operations approved today span health, water, urban services, and governance, putting the CPF's ambitions into action immediately.

The Yemen Health, Nutrition, and WASH Project (US$94 million) will deliver an integrated package of health, nutrition, and water and sanitation services to vulnerable populations, with a focus on pregnant and lactating women and children under five. The project will strengthen national disease surveillance systems, rehabilitate water and sanitation infrastructure at primary healthcare centers, and build the institutional capacity of the Ministry of Public Health and Population and other national institutions. Over six million people will receive outpatient services through the new operation.

The Yemen Improved Water Management and Irrigation for Sustainability and Efficiency Project (US$153.6 million) is the first phase of a multi-phase programmatic approach addressing Yemen's acute water scarcity crisis. The project will rehabilitate irrigation systems and water harvesting structures, restore water supply infrastructure across the Aden-Tuban and Wadi Hajir basins, and support digital systems for climate and water resources management. It will contribute to the CPF-wide target of expanding access to water, sanitation, and hygiene services from 3.4 million to 6.4 million people by 2030, while opening the door to private sector participation in water solutions in later phases.

The Yemen Integrated Urban Services Emergency Project II- Third Additional Financing (US$21 million) will restore and expand critical urban services, including roads, water and sanitation systems, flood risk management, and electricity for schools and hospitals, across selected cities, benefiting up to 1.75 million people through improved access to essential services.

The Modernizing Public Institutions and Systems in Yemen Project ($20 million) addresses one of the most fundamental constraints to Yemen's longer-term recovery: the fragmentation and weakening of core governance systems. The project will strengthen public financial management, improve statistical capacity, and lay the institutional groundwork for transitioning toward direct World Bank financing of Yemeni institutions. It contributes to a CPF-wide enabling objective of strengthening macro-economic stability, governance and institutions.

The World Bank Group has maintained an active presence in Yemen throughout the conflict, with a current portfolio of approximately $2 billion across nine active projects, financed through a mix of concessional IDA resources, trust funds, and donor support. The CPF was developed through extensive consultations with government counterparts, the private sector, civil society, development partners, and UN agencies, and is supported by the Yemen Resilience, Recovery and Reconstruction Trust Fund, co-financed by the United Kingdom, the Netherlands, and Switzerland, as well as the EU-IFC Enhancing Private Sector Growth in Yemen Trust Fund.