MICROCAPITAL STORY: USAID-Funded Al-Takadum Microfinance Institution to Open in Iraq’s Al-Anbar Province, Expanding Existing Microfinance Network

A statement issued by the U.S. Agency for International Development (USAID) indicated that the network of microfinance institutions active in Iraq will receive further expansions in new districts around the country. Specifically, the Al-Takadum microfinance institution (MFI) will open in Al-Anbar province, reports Middle East North Africa Financial Network News (MENAFN). This scheme is currently in its final stage of construction.

The MFI will begin operations with a staff of six members and is expected to open in late August 2007. The staff was recruited and trained by the USAID-funded Izdihar project. The loan capital will be provided by Izdihar and the operational capital will come from the U.S. Military MNF-W CERP funds, according to an article at PortAl Iraq, on online business portal.

The Izdihar-Iraq project is a comprehensive, 3-year program designed to assist the Government of Iraq expand the private sector and create jobs. Its main objectives are to develop a more market-friendly environment for broad-based economic activity and business expansion; to help Iraq attain sustained, higher economic growth rates that are private sector-led, employment generating and equitable; and to enhance the viability and growth potential of micro, small and medium enterprises by providing greater, more reliable access to sustainable financial services, training and other appropriate technical assistance. Its areas of focus include:privatization, investment promotion, trade policy and market access, business management services, capital market development, small and medium enterprise development/bank lending, and sustainable microfinance development. Within this last category, implementation activities currently underway include: grants to microfinance institutions, start-up technical assistance, best practice training, in-country microfinance training, and internationally recognized microfinance training.

As of July 23, 2007, Izdihar has provided USD 10.9 million in operational grants to three international non-governmental organizations (NGOs) that give microfinance loans to businesses in 17 of the 18 provinces of the country. It currently has a combined loan portfolio of USD 26.8 million, extended to over 19,000 active clients. Over 52,000 loans worth over USD 109 million have been disbursed (See Sustainable Microfinance Progress Highlights at Izdihar website).

While funded by USAID, Izdihar is managed by a joint venture of The Louis Berger Group, Inc. and The Services Group, Inc., contractors to USAID.

By Chryssa Rask, MicroCapital Writer

Additional Resources:

MENAFN: Al-Takadum microfinance institution to open in Al-Anbar

Portal Iraqi Economy: New indigenous microfinance institution to open in Al-Anbar

Izdihar-Iraq: Home

Izdihar-Iraq: Project Overview

Izdihar-Iraq: Sustainable Microfinance Development

Izdihar-Iraq: Sustainable Microfinance: Progress Highlights