Promotion of the Development of Small- and Medium-Sized Enterprises in Iraq
Area of Operation: Iraq
Duration of Assignment: March 2023 – Present
Name of Client: KfW
KfW Development Bank on behalf of the German Government aims to help remove key obstacles to growth in Iraq’s private sector through its financial cooperation program, “Promoting the Development of Small and Medium-Sized Enterprises in Iraq”, in the amount of up to EUR 45 million focuses on small and medium-sized enterprises (SMEs) that have limited or no access to debt capital due to the weak financial sector and are thus unable to exploit their growth potential.
Under the assignment, LANDT is supporting KfW and the Iraqi Ministry of Finance with the identification and screening of new project concepts in the area of private sector development in order to increase the access to financial services for SMEs.
Specifically, the set-up of a credit guarantee facility is targeted with the credit guarantee facility aiming to encourage and incentivize risk averse banks to serve the Target Group.
- Supporting in the concept note preparation with a focus on the institutional considerations and alternative legal set up options and executing scenarios for the different legal and evaluating options to provide recommendations for the CGF project design.
- Conducting stakeholder consultations and workshops to present the concept note and discuss the implementation roadmap.
- Conducting a preliminary high-level CGF design that includes the mandate, value proposition, type, scope, target group, delivery channels, etc.
- Developing guiding principles for the strategic consideration of PFI selection and specific guidance on defining eligibility criteria.