The Background and Activities of Building the Iraqi Microfinance Industry
The Iraqi Microfinance Network is a member-oriented organization that plays an important role in formulating and developing a sustainable and inclusive microfinance industry in Iraq. The network was registered with the Department of Non-Governmental Organizations and holds the registration certificate numbered (1D75316) in the year 2012. Its membership includes microfinance institutions operating in Iraq.
The network currently operates as an independent legal entity and looks forward to collective efforts from all stakeholders at the national, regional and international levels.
The network is a stimulating and coordinating body that aims to promote industry standards and best practices in addition to providing technical support to member microfinance institutions.
Microfinance empowers the vulnerable, turning opportunity into a sustainable reality.
This portal brings together a network of 9 microfinance institutions operating in Iraq. These institutions lend to micro and small business enterprises with loans ranging from 500,000 IQD to 100 million IQD and a 12-24 month loan term. Each microfinance institution (MFI) charges its own interest rate which are from 4% to 12% per annum. Other fees are also charged by select institutions depending on the conditions set for each loan product.
Microfinance is not charity. It is a powerful catalyst for self-reliance and economic growth
The microfinance industry based on best practices has experienced impressive growth since its inception in 2003. Its growth in outreach to clients was as high as 78% per annum through December 2007.
From December 2007 through January 2009 growth stabilized to a still impressive 64%. This stabilization is due to the stage of growth and maturation of the MFI industry, lack of capital, limited institutional capacity, and a lack of enabling legislation to support the industry. Some major accomplishments include (figures are as of the end of June 2024)
Nine emerging microfinance institutions are now functioning, with a total outstanding loan portfolio of IQD 189.4 Billon for almost 69,633 active clients (27% of whom are women).
Cumulative loan disbursements of over IQD 4.6 trillion to over 1.2 million clients (23% of whom are women).
Microfinance Institutions enjoy operational self-sufficiency
The financial systems of the MFIs are verified and structured to improve data quality. Regional and international integration of the Iraqi microfinance industry by way of membership and participation in the Sanabel Arab Network of MFIs, and uploading key data to the Microfinance Information eXchange (MIX) Market web-based platform.