CBI, ILO mark achievements in financial inclusion drive for MSMEs
The Central Bank of Iraq (CBI) and the International Labor Organization (ILO) celebrated significant milestones in their collaborative Financial Inclusion Initiative, aiming to uplift Micro, Small, and Medium-Sized Enterprises (MSMEs).
The joint effort has successfully disbursed nearly 200 loans, catalyzing the establishment and sustainability of approximately 1,200 job opportunities across the governorates of Duhok and Nineveh.
According to an official statement from the ILO, the initiative has provided business and financial training to around 3,000 young individuals, as well as small and medium-sized project owners. This comprehensive approach, designed to address the challenges faced by MSMEs, particularly in accessing formal financial channels and obtaining guarantees, targets members of the host community, returnees, and displaced individuals.
The high-profile event, endorsed by the CBI Governor and attended by prominent figures in Micro, Small, and Medium-Sized Enterprise development and financing, featured key representatives from the Dutch Embassy. Ammar Khalaf, the Deputy Governor of the CBI, highlighted the initiative’s dual focus on equipping youth with essential entrepreneurial skills and facilitating their access to financing backed by sufficient guarantees.
“Small enterprises encounter barriers in accessing official financial channels and securing guarantees. Our collaborative initiative not only imparts crucial entrepreneurial skills but also streamlines access to finance with robust guarantees. We aspire to expand our impact beyond Duhok and Nineveh, fostering broader economic empowerment and growth,” explained Deputy Governor Khalaf.
As of 2021, Iraq’s overall unemployment rate stood at 16.5 percent, with a stark gender disparity – 28.2 percent for women in the labor market compared to 10.7 percent for men. The youth unemployment rate was particularly alarming, at 35.8 percent, more than three times higher than the adult rate. The CBI and ILO initiative aims to address these challenges, contributing to the nation’s socio-economic development and job creation.
