PRIVATE SECTOR DEVELOPMENT IN IRAQ
PROVINCES
Nationwide
LIFE OF ACTIVITY
2020 to present
GOALS
USAID partners with the Government of Iraq (GOI), the Kurdistan Regional Government (KRG), the private sector, civil society, and vulnerable communities to create economic opportunities, enable households to overcome poverty, and promote long-term economic growth by diversifying and strengthening the private sector.
USAID supports micro-, small-, and medium-sized enterprises (MSMEs) to create a more business-friendly ecosystem, identify barriers to growth, attract investors, promote inclusive economic growth, and advocate for policy changes. USAID partners with Iraqi business associations to strengthen private sector networks and facilitate greater access to finance. Along with other donors, USAID supports the return of displaced persons to Ninewa with the Enterprise Development Fund, which promotes inclusive economic recovery and private sector revitalization with small grants to SMEs in affected communities.
USAID supports the GOI and KRG to implement economic reforms that respond to citizens’ demands for more responsive public financial administration, market diversity, and improved integrity and transparency. USAID also supports the government in developing private sector development strategies to achieve inclusive economic growth.
USAID supports businesses in Iraq to access capital investment and business development services. USAID is investing $2 million in small- and medium-sized agri-businesses to increase food security. The Water & Energy for Food Grand Challenge supports Iraqi innovators offering solutions to increase food production and boost the economy while ensuring sustainable water and energy use.
IMPACT
- Over 10,000 entrepreneurs (about 50% women) received support services to set up, formalize, and scale businesses.
- Since 2019, USAID has provided grants and loans to about 3,000 businesses, generating about $70 million in sales, an 80% increase. Nearly 7,500 youth received business development services.
- USAID has provided over $30 million in direct loans and grants to about 200 SMEs and entrepreneurs.
- USAID has helped attract over $90 million in equity investment and development loans for private banks’ SME portfolios, especially for businesses in technology, trade, and industry.
- In 2023, USAID facilitated collaboration between the U.S. Development Finance Corporation and the National Bank of Iraq to launch an $85 million lending program for SMEs.
- Since 2021, USAID has supported Iraqi innovators to generate over $2.7 million in revenue from the sale of smart climate systems and modern agri-techniques to about 12,500 farmers and smallholders.
- The GOI and IKR launched roadmaps for SME development, including increasing lending for micro-businesses to about $2 billion; 150 loans went to women- owned businesses in rural areas.
