The World Bank: The private sector faces an arbitrary and coercive business environment in Houthi areas
English - Monday 05 April 2021 الساعة 06:49 pm
Aden, NewsYemen, Exclusive:
The World Bank said that the private sector in Houthi militia-controlled areas faces enormous challenges due to an arbitrary and coercive business environment and numerous interruptions to the flow of commercial imports.
In its economic update to Yemen in April 2021, the World Bank added that the fragmentation of institutional capacity and financial divisions has exacerbated the challenges of the private sector, smuggling and currency speculation.
The Chamber of Commerce and Industry in Amanat Al-Asimah complained about the customs and tax double, and the Houthi militia raised the percentage of customs collected on goods at the outlets it had created from 30% to 50%.
The Houthi militia pushed the business environment in Yemen to its worst levels, and the Yemeni economy lost its competitiveness, due to the creation of customs points between cities, the plunder of private money, raising taxes, stopping electricity and high transportation prices.
Yemen ranked late at the global and regional levels in trade, electricity and permits indicators, and ranked 187 at the global level in the Business Environment Report 2020.
The economy remains under significant pressure this year, as the Houthi militia’s ban on the use of government-issued banknotes has dramatically lifted barriers to doing business.
An economic study on the role of the private sector has confirmed that the owners of official projects find themselves neglected by all authorities in all regions and at all levels, as they are not provided with any support or receive any incentives.
The Houthi militia’s tax practices and destructive policies for the business environment have pushed hundreds of Yemeni companies into bankruptcy and liquidation of their businesses, after decades of their contributions to development.
Reports indicate that the Houthi militia practice has caused material damage to companies and public infrastructure, insecurity, fuel shortages, electricity cuts, and a sharp decline in economic productivity.
