The United States Agency for International Development (USAID), an federal agency that provides global economic and humanitarian assistance, has announced a USD 4.45 million grant to USAID-Tijara, a microfinance program based in Iraq [1]. USAID founded USAID-Tijara, which means “trade” in Arabic [2], in 2007 as a five-year program intended to combat unemployment [3]. Three years into the program, national unemployment remains at 30 percent.
USAID estimates the funds will go to 5,000 individuals between the ages of 18 and 35 through individual and group loans to start businesses. According to Raymond Mendenilla, the director of USAID-Tijara, training is a key part of this initiative. Microborrowers must participate in classroom workshops, one-on-one consultations and mentoring by experienced business planners before receiving loans.
By Matthew Castner, Research Assistant
About USAID-Tijara
USAID-Tijara was founded in 2007 and has created and funded eleven microfinance institutions (MFIs) over that time. Consequently, these MFIs have loaned USD 343 million to nearly 150,000 borrowers with a USD 3,000 limit per loan and a one-year repayment term. The corporation does not report to the MIX Market, the microfinance information clearinghouse.
[1] USAID: “New USAID Program to Help Young Iraqis Acquire Skills, Find Employment, Start New Businesses,” http://www.usaid.gov/press/releases/2010/pr100409.html
[2] USAID-Tijara: “Welcome!” http://www.tijara-iraq.com
[3] USAID: “RFP No. 267-07-001: Tijara – Provincial Economic Growth,” http://www.usaid.gov/iraq/contracts/rfp267-07-001.html
[4] USAID-Tijara: “Tijara 2009 Progress Report,” http://www.tijara-iraq.com/?pname=open&f=doc101052_tijara_ProgressRpt_oct2009_pt1.pdf&id=1052&type=file
Additional resources:
MicroCapital: “MICROCAPITAL BRIEF: US Agency for International Development’s (USAID’s) Tijara Program Funds Microfinance Institutions in Iraq,” https://www.microcapital.org/microcapital-brief-us-agency-for-international-developments-usaids-tijara-program-funds-microfinance-institutions-in-iraq/
MicroCapital’s Microfinance Universe profile: USAID-Tijara: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=USAID-Tijara
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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