Report estimates the economic damages of torrential floods in Yemen

An new report estimated the damages caused by torrential floods in Yemen on the economy, especially the agricultural sector, which provides income for around 70 percent of the population, with thousands turning to it due to salary disruptions and job cuts in the private sector.

The report issued by the Forum for Media and Economic Research, indicated that the floods washed away thousands of farms and irrigation systems, leading to soil erosion and destruction of its general structure. In addition, agricultural crops were destroyed, surface wells were buried, dams and water barriers were destroyed, mines were carried by the floods and deposited in the middle of agricultural lands, making them difficult to reclaim.

The report also noted that the damages extended to internal trade, facing logistical challenges due to road closures, isolation of internal regions from each other, and making it difficult to deliver shipments from ports to main warehouses or distribution points.

Furthermore, the floods swept away transport trucks, goods and warehouses, causing additional costs for the commercial sector. The floods also contributed to the failure of many farmers to repay the financing installments they received from banks and microfinance programs, making the environment for microfinance industry more challenging after significant fluctuations due to the war.

The report expected that the floods and their damages would be an additional reason for some farmers, even those who were not affected, to evade repaying their installments, leading to an overall increase in the volume of non-performing loans in microfinance and thus imposing more conditions and restrictions on the financing process.

As for human and infrastructural losses, the report indicated that heavy rains and floods affected nearly 562,000 people, destroyed more than 17,093 homes for residents and shelters for displaced persons, and 22 schools - 7 of which were completely destroyed and 15 partially damaged in all affected areas. Additionally, a number of major hospitals and more than 74 health facilities were affected.