In August 2007, MicroCapital reported on the launching of Al-Takadum, an Iraqi microfinance institution (MFI) in Al Qaim, Al Anbar province. IZDIHAR recently announced in a press release that Al-Takadum opened a second office in Fallujah with seven employees, and as of November 2007, has disbursed fourteen loans totaling USD 32,200.
The establishment of the MFI was a joint effort by the USAID-funded IZDIHAR project and the U.S. Military. While IZDIHAR conducted staff training, supplied loan capital, and provided technical assistance in setting up policies and procedures, the military covered refurbishment and equipment expenses. Since its inception in August 2007, Al-Takadum’s Al Qaim branch has awarded 85 loans totaling USD 194,450. The MFI hopes to soon open another office in Ramadi.
As reported in another MicroCapital story, IZDIHAR (prosperity in Arabic) is a comprehensive three-year project funded by USAID (United States Agency for International Development) in September 2004 to promote private sector development and a market-based economy in Iraq. Components of the project include: sustainable microfinance, privatization, investment promotion, business management services, and small and medium enterprise (SME) bank lending programs, among others. In the area of microfinance, IZDIHAR has contributed USD 17.6 million in operational and loan capital grants to three international non-governmental organizations (NGOs) involved in providing micro-loans in all eighteen provinces of Iraq. These NGOs have a combined loan portfolio of USD 32.2 million with almost 23,000 active clients. IZDIHAR has also provided USD 7.25 million in loan capital grants for the establishment of the seven indigenous MFIs in Iraq in 2006. As of October 2007, these institutions have awarded 871 loans totaling USD 1.4 million. The MFIs do not currently report to a third-party performance evaluator, such as the Microfinance Information eXchange (MIX) Market.
For previous MicroCapital stories on IZDIHAR, please click here.
By Mary Fu
Additional Resources:
MicroCapital article, August 23, 2007: “USAID-Funded Al-Takadum Microfinance Institutino to Open in Iraq’s Al-Anbar Province, Expanding Existing Microfinance Network”
IZDIHAR: “The Fallujah Branch of “Al-Takadum” Microfinance Institution Makes First Loans”
MicroCapital article, December 4, 2007: “New Microfinance Institution in Iraq Kicks Off Lending with Thirteen Loans”
Similar Posts:
- MICROCAPITAL BRIEF: 3k Displaced Persons, Returnees, Hosts Access Loans, Guarantees, Business Training in Iraq
- MICROCAPITAL BRIEF: World Bank’s IDA Lending $15m to Djibouti for Low-income Housing Finance, Policy Reform
- MICROCAPITAL BRIEF: Reefy Microfinance Borrows $6.5m from EBRD for Youth-led MSMEs in Egypt
- MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine
- MICROCAPITAL BRIEF: CEB, EU Expand Roma Housing Microfinance, Financial Inclusion Program to Bulgaria
