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Business & Economy
27 - July 2nd thru July 8th 2001, Vol XI
 
 
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Investment Opportunities in The Field of Cotton Planting & Marketing

Mahyoub Al-Kamali
Agricultural sources have reported YT that there is a remarkable increase in orders from foreign markets to buy big quantities of Yemeni cotton as it is marked by its high quality. This will provide the private sector better investment opportunities. It can extend the cotton plantation done on100 thousand Fadan from which Yemen export 20 thousand tons of cotton annually.
Sources in the General Corporation for Agricultural Services revealed that the Yemeni cotton a highly valued in foreign markets. There are some orders from the foreign private sector to establish joint ventures with the general Corporation for the Textile and weaving to increase the production and exportation volume of cotton.
Fluctuating Production Volume
Sources revealed information about the cotton plantation in Yemen and the resources available to invest in this field. In 1975-1976 Yemen produced about 40 million Kgm of cotton. In 1983, the production went down to 20 million kgm. Then the production volume remained constant at this volume until the agricultural season in 1990.
The slump in cotton production is attributed to natural, economic and social factors . The situation deteriorated to such an extent that during 1990-94 four million kgm of cotton was produced annually. This has led the Yemeni government adopt the agricultural reform program within the framework of its overall economic reform program which has been embarked upon since 1995.

The Government Plan to Increase Cotton Production
The agricultural reform program includes taking measures to promote cotton plantation subjecting the cotton prices to the supply and demand mechanisms. It also includes establishing a project to develop the production volume of cotton under the supervision of the General Corporation for Agricultural Services. The program also ensured support for the Cooperative Agricultural Associations and the Agricultural Production Fund to increase the cotton production.
The general GCAP renders more services and facilities in the field of marketing and production for cotton farmers including supplying them with good seeds. It also provides support to farmers who plant cotton in more than 500 to 800 fadan.
Development measures taken in this direction led to an increase in Cotton production. In 1997 Yemen exported 7 million kgm of cotton in comparison to 2 million kgm in 1996. In 1999, cotton exports reached million kgm, that is equals 20 thousand tons. During the past three years, the revenues from cotton exports reached $12 million

Encouraging the Private Investment
Polices of the agricultural reform came to face some difficulties including the financial limitations which to improve planting and producing cotton.
Therefore, the Ministry of Agriculture identified new areas which have more favorable weather for cotton plantation. It also took measures to support the trend to encourage the private sector to invest in the production, marketing and manufacturing of cotton. This can have a salutary effect to improve the balance of payment of the state, and buoy up the economy of the country.
Agricultural Sources indicate that the private sector investment in this field will make available the modern technology and all necessary insecticide for pest control.

Yemeni Cotton and its Quality:
Yemeni cotton is of high quality. It competes with that of Egypt. The Yemeni Corporation for Textile and Weaving exports cotton to Portugal, Spain, Germany, Turkey through a Swiss company which markets 500 tons on an annual basis from many countries all over the world.
There are two factories for Weaving and Textiles in Sana'a and Aden. However, the need for the private sector still exist to invest in the weaving and textile sector. According to the official plans, during the current season and until the end of the 2001 there will be a campaign to extend cotton planning to many areas. In 2002-2003 it will be extended to Lahj and Hodeidah.
Agricultural sources confirm that there are serious efforts to increase the opportunity for the private sector to invest in the planting, cotton manufacturing and marketing of cotton which will be a promising source for generating revenues to support the Yemeni economy.

 
REMAH Valley: Natural Environment with Economic Outcome

Yassin Al-Tamimis
The range of western mountains is one of the wonderful signs of geological formation in Yemen . This range is very important from the natural point of view as has the second waterfall after Hadhramaut Hill. But it is the first to receive an annual average rainfall of about 1000mm. This gives it a strategic importance since more than seven large valleys descend from this mountain range. The most important of these valleys is Mour valley - the western gutter of Yemen, then Seham, Zabid, Remah, Sordod and Rissian. These valleys are sequenced according to their importance. These valleys exemplify
a natural conglomeration of animal and botanical diversity. They are also covered with a permanent green cover of consisting of various trees and crops throughout the year. This range varies in height from Tehama Plain in the west to the Middle Plains and from these mountains many sub valleys and streams descend which form the main valleys. This range has a rich diversity of flora and fauna.

REMAH Valley : about 2500 m2
It's a good advantage point for calculating the magnitude of the western mountains. Despite its being at the midpoint among the valleys, it has the distinctive feature of having a perennial stream along its main canal in TEHAMA Plain. It is also conspicuous by its fertile soil and the number of plateaus which spread across many districts such as BILLAD AROUS, DHAORAN, ANES, ASHARG MOUNTAIN, MAGREB ANS, UTOMAH, ASALAFIA, KUSMA, WESAB AL ALI, and WESAB ASAFFEL.

Vital variety
The valley has another feature of having vegetation throughout the year due to the availability of a perennial stream. But the arable land is limited since the valley is narrow as the other valleys in the west.
In regard to the fruits and vegetables of higher bread, banana comes in the first rank for its high quality and good harvest which a part from fulfilling the local needs are exported as well. Besides banana there are other varieties of fruits such as papaya ( sham grapes ), mango and palms. In addition to these there are the screw pine trees which fill the valley with a nice fragrance and are used for social occasions in the valley. Moreover, these trees are a good means for the protection the arable lands against floods. There are many species of birds living in the valley throughout the year such as Water King as it is called in the valley. These species depend mainly on fish which is so plenty available in the valley and people depend on it as a favorite food. Above all there are many species of animals in the valley such as sheep, goats, cows and camels.

IBEX Environment
The diversity of the valley's ecology gave ibex a suitable and unique environment to sustain itself for centuries until it became extinct in the beginning of the 80s of the last century as a result of the devastating fire list by the hunters and poachers. There are many signs that this animal survived for so many centuries because of a natural habitat. It was used as a precious sacrifice for the Gods by ancient Yemenis. And after the dawn of Islam it ceased to be an easy prey. However, its delicious meat led many people to follow it over the rugged descents.
The habitat of this extinct species which is also known as the wild He-goat was the target of many teams of experts from the Center for Cultivating Unique Animals in Ashareka. This team was headed by Mr. Naji Thoabah the Chairman of the Natural Resources and Researches in the council. Mr. Peter Rait was the representative of the center which undertook the survey in collaboration with ADHABARA Association in Kusma district. The visit lasted two days and it was a good chance for exploring the environment in which the rarer species ibex lived. As the inhabitants of that region said there were a large number of this animal in this valley before 20 years. Moreover, there are signs of the holy place the Ibex enjoyed as evident from its horns hung in houses as an auspicious omen to discard any evil spell.
People there also narrated the story of Ashiakh Hidarah Al-Afif who tried to stop hunting this animal and who succeeded to some extent but after some time the situation became as before. During the visit of the team to this district along with Ashiakh Ali Mahdi Adhubarah the Chairman of the Association the possibility of reviving the species again in this area due to its congenial environment was explored.
Mr. Naji Thwabah stated that in view of these factors, the council can announce the district of "ADHABARAH" as a natural sanctuary. This is of course with the collaboration of the native population after carrying out the necessary survey on the quality of the biological diversity and after demarcation of the borders as well as defining limits for human colonies.
To Mr. Peter Rite, a specialist in the Environment Studies, the signs are encouraging for launching this project as an ideal example which may eventually lead to expand the protectorate to include new areas in all directions, especially those which share the same geological formation and biological environment as ADHABARAH.
As experts opined Ibex has a striking resemblance with some other different kinds of goats in the area in terms of color spots on the body. On the other hand there was another kind of wild animals which was known as "Mountain Gazelle" but regrettably it also met the same destiny as Ibex.
However, the experts in the Council for the Protection of Environment realized that the circumstances are suitable to breed and revive this mountain gazelle along with Ibex again. To the people of the district this project is a dream they are looking forward to come true. In other words, they are so enthusiastic to carry out this project as soon as possible. This is for the sake of the protection of the extinct animal species still living in district against any atrocious actions. This enthusiasm clearly reflected on their faces during their discussions with the experts of the council.

 
Cost Sharing for Primary Health Care: Workshop

Under the auspices of Professor Dr. Abdul Nasir Al-Munibari, Minister of Public Health and Population Oxfam GB Yemen and Health Sector Reform Support Unit, Public Health and Population Ministry held a on 27 June workshop on the cost sharing for primary health care in the public sector of Yemen. In the workshop a study conducted by Oxfam (GB) in Yemen in Collaboration with the Health Sector Reform Support Unit, Public Health and Population. In the workshop the study will be presented on current cost sharing practices in public health financing and how these affect the poor and vulnerable among the Yemeni population. The study presentation will be made to representatives from the Public Health and Population Ministry, other policy makers and donors to discuss and explore ways to improve the current system of cost-sharing and possible alternative options for the future health financing.
The study covered four government facilities and 12 donor supported schemes across the country, which had introduced cost sharing by patients in the form of fees for basic service and drugs. It gathered and analyzed the perceptions of over 1,000 users and non-users, members of health facility committees, health services. It also evaluated the degree to which cost-Sharing schemes achieved the aims of enhancing access to health care and promoting equity and community participation.
The study revealed wide variations in how schemes were implemented. While many people were prepared to contribute to financing basic health care, as many as one person in two could not afford to do so, and had to either forgo treatment or get into debt and sink further into poverty to obtain treatment. Exemption policies were found to be inadequate or non-existent, with the result that many of the poor were denied access to basic health facilities. As one poor man in Ibb governorate said: "The poor who cannot afford to feed their children ....how will they afford to pay?" The study showed that the priority for most people was affordable and locally available drugs and services of good quality, and safeguards for those who could not afford treatment.
The study report recommends that the current cost sharing schemes be improved. Key areas for improvement include national guidance on definitions of poverty, a clearly defined and well-publicized exemption policy, and steps to improve service and supply of drugs, including better staff training and supervision, reinvestment of revenue and improved auditing and monitoring of the schemes. The study aims to stimulate debate around the development of health financing policy and practice that would protect the poor.

 
Economy News

American Financial Aid to Yemen
An American grant of US$ 31.25 million has been recently received by Yemen. The grant which comes within an aid program will be utilized for implementation of a number of developmental projects in the fields of roads, water, education, bridges, etc.

Net Profits of CBY: 20.6 Billion Rials
Net profits of the Central Bank of Yemen (CBY) reached 20,600,000 000 rials during the financial year 2000 out of which 15,000,000,000 is revenues of the bank from external assets.

US$ 1.45 per Barrel of Al-Masilah Crude Oil
The Yemeni Oil & Gas Corporation has priced the exported crude oil of Al-Masilah at US$ 1.45 per barrel. Chief among importers of Al-Masilah crude oil are BP, Total, etc.

Yemeni-Saudi Relations Conference
The first session of Yemeni Saudi Relations held in Sana'a last week to discuss development of the economic systems, promotion of investment in the two countries, transit trade, financing infrastructure by private sector, increase the volume of trade exchange between the two countries.

 
 
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