Erbil hosts a conference to discuss the policy of the national MSMEs development policy in supporting the Iraqi economy

Erbil-INA

The city of Erbil hosted a conference sponsored by the Ministry of Planning to discuss Iraq's national MSMEs development policy.

Sabah Jundi, Director General of the Economic Policy Department at the Ministry of Planning, told the Iraqi news agency INA that “A conference was held in Erbil governorate on the policy of developing micro, small and medium enterprises under the auspices of the Ministry of Planning and in cooperation with the International Labor Organization,” 

Jundi highlighted that MSMEs account for 90% of global businesses, employ 70% of the workforce, and contribute 50% of the global GDP. He stressed the government's commitment to this sector, with the Ministry of Planning working to develop a clear policy and actionable plan.
 
Additionally, Jundi outlined the Ministry's support for green initiatives, particularly in southern Iraq and Basra, which face environmental and climate challenges. He emphasized the integration of green projects into national strategies, including the Prime Minister’s recent forestation efforts.
 
He also noted the crucial role MSMEs play in driving economic growth and job creation in Iraq. Jundi called for coordinated efforts to effectively support these enterprises and detailed ongoing Ministry initiatives aimed at improving the business environment through regulatory reforms and capacity-building programs. He assured that efforts are being made to reduce bureaucratic obstacles and enhance access to resources for MSMEs.

Dr. Maha Kattaa, ILO Country Coordinator in Iraq 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."

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.
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 labor 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 labor market, particularly in entrepreneurship. They will work towards formulating practical recommendations for a cohesive national policy to support MSMEs in 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.