The Iraq Microfinance Strategy

This document represents the consensus view of Iraqi MFIs, practitioners and other key stakeholders on the development of a comprehensive strategy for microfinance development in Iraq.

The strategy document is designed for a period of three to five years, and will be driven by MFIs and practitioners. It comprises six strategies that include:

• Promoting awareness of microfinance and its benefits among clients, donors, government officials and policymakers, and the banking industry;
• Seeking a legal and regulatory environment that supports establishment of new MFIs and integration of MFIs into the financial community;
• Capacity building through training and other programs;
• Emphasizing transparent operations with internationally accepted standards and reporting, and the use of computer-based record keeping;
• Supporting industry development through formal and informal networking opportunities, while ensuring information security;
• Increasing business opportunities with the banking industry to provide MFIs with banking services and promote partnering arrangements between MFIs and banks.

Although there is large demand for microfinance in Iraq, the conflict and other complicating factors make microfinance services delivery very challenging. These challenges can best be faced by focusing on the six strategies outlined in the document.