The International Labour Organization (ILO), the Ministry of Planning (MOP), and the Italian Agency for Development Cooperation (AICS) have partnered with key stakeholders and UN agencies to bolster the role of micro, small and medium enterprises (MSMEs) in Iraq's economic development. A two-day conference aims to Discuss the National Micro, Small, and Medium Enterprises development Policy for Iraq by bringing together government entities, international organizations, employer and worker groups, and financial institutions to collaboratively advance MSME development in Iraq.
© ILO/ Rostom Aram Sarkis/ 29 July 2024/ Erbil - Iraq The conference began with a welcoming address by Mr. Sabah Jundi Mansour, Director General of the Economic Policy Department at the Ministry of Planning, and Maha Kattaa, ILO Country Coordinator in Iraq.
Mr. Mansour emphasized the critical role of MSMEs in driving economic growth and job creation in Iraq, stating: "MSMEs are essential for our economic development and job creation. Unified efforts are necessary to support these enterprises effectively." And presented the ministry's ongoing initiatives aimed at supporting MSMEs. His presentation detailed strategic plans and policies, including regulatory reforms and capacity-building programs designed to create a more conducive environment for MSMEs. He underscored the ministry's commitment to reducing bureaucratic barriers and facilitating easier access to resources for MSMEs.
© ILO/ Rostom Aram Sarkis/ 29 July 2024/ Erbil - Iraq Dr. Kattaa highlighted the ILO's commitment to fostering sustainable enterprise development and promoting decent work through MSME support, noting: "The ILO is dedicated to supporting MSMEs and ensuring that they contribute to sustainable economic development and decent employment opportunities."
© ILO/ Rostom Aram Sarkis/ 29 July 2024/ Erbil - Iraq A key presentation by Mr. Ammar Khalaf, Deputy Governor of the Central Bank of Iraq, highlighted the Central Bank's initiatives to support MSMEs and introduced the National Banking Lending Strategy launched in May 2024. This strategy addresses the critical challenge of access to finance, which remains a significant barrier for MSMEs. Mr. Khalaf outlined the strategy's core components, which include low-interest loans, financial literacy programs, and collaborations with microfinance institutions to enhance financial inclusion.
© ILO/ Rostom Aram Sarkis/ 29 July 2024/ Erbil - Iraq The Ministry of Labour and Social Affairs highlighted its efforts to promote entrepreneurship, particularly among youth and women, through comprehensive support programs for MSMEs. These programs include various loan schemes, technical assistance, and vocational training aimed at enhancing the skills and capabilities of MSME operators.
The ILO presented and discussed the results of a comprehensive assessment of the enabling environment for sustainable enterprises (EESE) in Iraq, focusing on those led by women, which highlighted the challenges and opportunities for women entrepreneurs and advocated for inclusive policies to support women's participation in the labour market and promote equality in entrepreneurship. The EESE framework, established by the ILO at the International Labour Conference in 2007, outlines 17 pillars necessary for fostering sustainable enterprises, emphasizing the integration of profit with human dignity, environmental sustainability, and decent work, and has since been applied globally, including in fragile contexts, to promote economic growth, job creation, and poverty reduction through comprehensive policy and program support.
Representatives from international organizations, including the ILO, UNDP, IOM, WFP, ITC, GIZ, IFAD, and UNIDO, shared their experiences and best practices in supporting MSMEs in Iraq. They presented ongoing and planned projects that align with sustainable development goals, emphasizing the importance of green initiatives.
A panel discussion in the conference featured representatives from the Iraqi Microfinance Network (IMN), Iraq Company for Banking Guarantees (ICBG), KAPITA, the First Finance Company (FFC), and the Station, who discussed the diverse range of support services available to MSMEs, both financial and non-financial. Panelists emphasized the challenges faced by their institutions and the importance of integrated support mechanisms, including mentorship, business development services, and access to technology, to ensure the sustainability and growth of MSMEs.
On the second day of the conference, more than 100 participants will continue their discussions, focusing on women's participation in the Iraqi labour market, particularly in entrepreneurship. They will work towards formulating practical recommendations for a cohesive national policy to support MSMEs in Iraq.
© ILO/ Rostom Aram Sarkis/ 29 July 2024/ Erbil - Iraq The ILO, Ministry of Planning, AICS/Italy, and other stakeholders are collaborating to create a sustainable and inclusive economic environment that empowers MSMEs and fosters overall development in Iraq.
The Italian Agency for Development Cooperation is thrilled to announce its endorsement of a new initiative that aligns seamlessly with the goals of the Team Europe Initiative for Iraq. AICS remains unwavering in its dedication to cultivating a diverse and inclusive workforce. It is at the forefront of advocating for the empowerment of groups often sidelined, including women and individuals with disabilities. This pledge highlights AICS's acknowledgment of the significant contributions that various perspectives bring to the organization.
"Revitalizing Micro, Small, and Medium Enterprises (MSMEs) isn't just a strategy; it's a cornerstone for Iraq's economic resurgence," declared Roxane Weber, the Regional Director of AICS. "It's about more than just business growth; it's about creating a harmonious environment where every individual, regardless of background, is granted a fair chance to prosper. This isn't just an initiative; it's a promise to the people of Iraq that we see them, we hear them, and we are committed to their success."
This initiative falls under the "Towards more and better employment through enhanced support to private sectors in southern Iraq - with a focus on green business" project, implemented by the ILO with the support of Italy. The project is part of broader efforts under the Iraq Decent Work Country Programme, a collaborative initiative signed by the Government, employers' and workers' organizations and the ILO to promote employment opportunities and decent work.
