Selected Sector and Institutions
Project Design Process
Results to be reached
Outputs and Activities
Summary work plan 2011 

NTF II Yemen National Export Strategy Design and Implementation Management (NES) 

Selected Sector and Institutions

The completed NES document, endorsed thereafter by the Government of Yemen, will include recommendations and proposals for Trade-Related Technical Assistance projects that can strengthen Yemen’s competitiveness and improve the country’s enabling business environment, thereby providing programming opportunities for TRTA providers with an interest or focus on Yemen.

The salient needs of the target groups and beneficiaries of the NES are mentioned here below:

• At the macro-level weaknesses observed in Yemen are prevalent socio-economic challenges  (Yemen is an LDC) ; Legal and regulatory challenges the impede an enabling business environment (investment incentives,  contract enforcement and competition regulations); Rules and regulations that increase the cost of doing business and reduce exposure to open competition; Infrastructure constraints; and Security challenges
• At the institutional level, weaknesses affecting national competitiveness include weak private sector institutions (not structured to support economic development); minimal collaboration between private and public sector to enable collective action by the private sector; limited access to finance; and lack of information on business opportunities and other support aspects.
• At the enterprise-level weaknesses observed include a focus on the local market that is characterized by low purchasing power; outdated technology, low investment in machinery, equipment, maintenance; Low investment on branding; Insufficient scientific and technological infrastructure and capacities for R&D which results in reliance on foreign partners to provide know-how and secure innovations; Low investment on training; Pre-dominance of family businesses that are not sufficiently progressive and innovative; and the excessive influence of Government.

Project Design Process

The NTF II Yemen NES pre-engagement mission led by ITC Export Strategy staff took place in November 2010. This mission, apart from scanning the trade support and policy environment in Yemen, and evaluating the readiness of the MoIT (FPO) to undertake the NES design process, also focused on engaging with the larger stakeholder environment through:

• Briefing key stakeholders on the process and methodology of the NES (senior representatives of the Ministry of Industry and Trade; of other key public sector organizations; and of leading Private Sector organizations). This was carried out through individual and collective meetings, and included a meeting with the Minister of the MoIT, to gain support and traction for the process.
• Discussing the selection and confirmation of the NES Navigator.
• Identifying who should be represented on the Core Team, and forming the team.
• Outlining activity sequencing for the full project period, including a detailed work plan for the first six months after the Inception Meeting and First Stakeholder Consultation.
• Setting up a project management structure, describing roles and deliverables of the project team, partner TSIs and NTF II programme management team.
• Outlining the role, expected duties, and ideal profile of the National Consultant, and agreement on the recruitment process. Furthermore, the mission also met with some prospective candidates.
• Agreeing on a modus operandi on the conduct of the preliminary audits.
• Planning for the Inception of the NES  and the first stakeholder consultation; and forming of the National Strategy Team.
• Preparing a plan of action up until the end of the inception phase, marking the achievement of the first milestone – The NES Response/Position Paper – that will shape the scope and direction of the NES.
• Covering all other matters such as the need for strengthening the YESC and identifying a communications plan germane to Yemen.

Results to be reached

Impact 

Contribute to the Yemen’s export development and increase competitiveness of Yemeni exporters 

Outcome 

Sustainable Institutional and enterprise-level capacities created in Yemen for National Export Strategy design and implementation management

Outputs and Activities

 Output 1: Governance structure and preliminary elements for the National Export strategy design process in place and functioning 

• Complete pre-engagement, inception and preliminary audits
• NES Inception and First Stakeholder Consultation

Output 2: Process and capacity built in MoIT to oversee and develop NES 

• Complete Baseline analyses and “Response/Priority Paper”; Determine priority sectors and cross-sectoral functions
• Organize Second Stakeholders Consultation and Form Sectoral and Cross-sectoral teams 

Output 3: Functioning process in place for public/private dialogue, oversight of NES Implementation and Trade Promotion 

• Design implementation management structure with performance management plan
• Refine YESC mandate and establish Technical Secretariat
• Initiate Implementation management phase
• Assist MoIT in Re-Building Trade Promotion Function  

Workplan for 2011