Towards more and better employment through enhanced support to private sectors in southern Iraq – with a focus on green business

Private sector development in Iraq challenged by several factors as the economy is largely dominated by the oil sector and state-owned enterprises further impedes incentives for private sectors growth and diversification in the wider economy. Moreover, local firms struggle to become competitive within national and international markets and an abundance of cheap imports combined with low levels of investment have hindered the development of nascent domestic activities . Iraq is also known for challenging business environment which makes it difficult for “start-up” and/or MSMEs’ to flourish and expand their business in the formal economy and green businesses. Lack of business management skills and financial literacy coupled with lack of access to credit and loan services even makes it more complex for entrepreneurs and enterprises to start up business in Iraq. Furthermore, Iraqis private sector is characterized by high rates of informality and decent work deficit. Despite all the challenges, the sector has enormous potential for growth and job creation if there is enabling business environment for MSMEs. The ILO, having the expertise and experience globally, in the region and in Iraq, namely: building on its well-established business and financial management tools, and its previous agreement with the central bank of Iraq, aspires to achieve the following two objectives while creating more and better jobs through its proposed activities: 1) Improve business ecosystem for MSMEs in Iraq to grow and thrive through policy options along with national and subnational dialogue amongst key stakeholders in the private sector development; and 2) Capacitate and empower national/subnational financial and non-financial institutions to better support entrepreneurs and MSMEs to unleash their full potential.

Project symbol

IRQ/22/03/ITA

Admin unit

RO-Arab States/DWT-Beirut

Start date

09/03/2023

End date

12/05/2026

Total allocation

3216118

Total expenditure

Status

Active

2067501

Development Partners

Italy, Ministry of Foreign Affairs and International Cooperation

Country/Countries

Iraq

Outcomes

Outcome 4: Sustainable enterprises for inclusive growth and decent work