Financial Inclusion for a New Economic Start and Integration - Diagnostic of financial inclusion in Iraq

The Multi-Donor Action "Financial Inclusion for Economic Restart and Integration in Iraq" is jointly financed by the European Union and the Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ as part of the BMZ project "Finanzielle Inklusion für wirtschaftlichen Neubeginn im Irak". The duration of this Action is scheduled from 15.12.2021 to 14.11.2024 with a total budget of EUR 16.050.000 (EU contribution EUR 11.000.000 and BMZ contribution EUR 5.050.000; BMZ"s total funding for the BMZ project "Finanzielle Inklusion für wirtschaftlichen Neubeginn im Irak" is EUR 7.000.000). The Action is part of and contributes to the Team Europe Initiative (TEI) "Sustainable and in-clusive socio-economic perspectives for Iraq" (2021-2026); the Federal Ministry for Economic Cooperation and Development (BMZ) Special Initiative "Tackling the root causes of dis-placement, reintegrating refugees" and the two EU Special Measures. First, the EU Special Measure 2019/2020 "Support to Governance and Sustainable Job Creation in Iraq" (MID-EAST/2020/042-211 and MIDEAST/2019/041-827), which aims to support economic governance, vocational training, migration management, and job creation through sustainable agriculture and diversification of economic opportunities. Second, the EU Special Measure "Support to the Energy Sector Reform in Iraq" (MIDEAST/2018/ 41-106) which aims to enhance the availability of sustainable, affordable energy and limit the environmental impact of hydrocarbon combustion. The Overall Objective of these two EU Special Measures are "To foster improved governance and promote the sustainable, knowledge-based, and inclusive economic growth in Iraq" and "Ensure increased and more reliable access to energy for the Iraqi population". The Specific Objective (outcome) of this Action is "Access to inclusive financial services for vulnerable target groups has been sustainably improved". This is achieved through a multi-dimension approach incorporating the supply side through product development with financial service providers, the demand side through financial education and framework conditions particularly through capacity development for inclusive policy-making with Central Bank of Iraq. Equal access, usage and quality for all parts of the population, with specific measures for women, is applied in a cross-cutting approach throughout the 3 dimensions. The Action accordingly has four Outputs, (1) "Developing inclusive financial services", (2) "Enhancing awareness about inclusive financial services and the financing of renewable energies", (3) "Strengthening the capacities of the Central Bank of Iraq to promote and regulate inclusive financial services", and (4) "Improving conditions for women-led businesses to access financial services." Direct beneficiaries are vulnerable Iraqi population groups such as women, youth, people affected by poverty, forcibly displaced persons (FDPs), returnees, refugees and micro, small and medium enterprises (MSMEs). Indirect beneficiaries of the Action are the total Iraqi population as they indirectly benefit from enhanced access to financial services across the country. The Action is based in Baghdad and maintains an office in Basra.