USAID-FUNDED IRAQ GOVERNANCE & PERFORMANCE ACCOUNTABILITY (IGPA/TAKAMUL) PROJECT TASK ORDER 0004 UNDER CLIN 0005
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NIFI tests the potato varieties for propagation at the HK International Investment Company farm in Erbil. USAID-FUNDED IRAQ GOVERNANCE & PERFORMANCE ACCOUNTABILITY (IGPA/TAKAMUL) PROJECT TASK ORDER 0004 UNDER CLIN 0005 Semi-Annual Progress Report: OCTOBER 1, 2020 – FEBRUARY 28, 2021 FEBRUARY 2021 This publication was produced for review by the Unites States Agency for International Development. It was prepared by DAI.
CONTENTS Objective of Task Order 4 1 Highlights of Outcome and Achievements 1 Overall status of project progress towards objectives and targets 2 Status of overall project progress per the approved indicators 11 Summary of completed activities and progress towards results 12 List of reports/deliverables completed 15 Explanation of quantifiable outputs of the tasks 15 Status of budget expenditures 15 Problems and mitigating actions 15 Relevant constraints or impediments 16 List of major activities planned for the next six months 16 List of meetings, workshops and other activities 17 Reasons why established targets were not met 17 Projected USAID approvals, waivers or deviation requests 17 Trainet reporting requirements 17 Acronyms 19
OBJECTIVE OF TASK ORDER 4
The USAID-funded IGPA/Takamul’s Task Order 4 (TO4) commenced April 23, 2019. Task Order 4,
known as the IGPA/Ninewa Investment Facilitation Initiative (NIFI), provides business development
services (BDS) in the form of firm-level technical assistance and practical training to empower
entrepreneurs and enable businesses to acquire the knowledge, tools, and financing to start-up,
revitalize, and grow. IGPA/NIFI assists firms of all sizes—from internally displaced persons (IDP)
minority and women-owned micro enterprises to larger and more sophisticated small and medium
enterprises (SME).
Overall Project Goal: Increased employment through demand-driven private sector-led
economic growth in Iraq, with a major focus on Ninewa Province.
Overall Project Purpose: Increased employment through improved business expansion
and investment readiness of the Iraqi private sector with a focus on SMEs and targeted
assistance to funding and investor sources.
Focus Geographic Area: Ninewa Province, with a focus on including ethnic and religious
minority-owned businesses.
HIGHLIGHTS OF OUTCOMES AND ACHIEVEMENTS
Key accomplishments from October 1, 2020 through February 28, 2021 are as follows:
• Facilitated financing deals for four businesses, bringing the total number of SMEs for
which NIFI mobilized financing to 39 enterprises. One of the businesses is from
Ninewa’s Yazidi minority group.
• Provided BDS to 69 new firms, bringing the total number of SMEs that received United
States Government (USG)-funded technical assistance to 326 firms.
• Referred 80 SME applications to various financing institutions and investors. The total
amount of financing for NIFI’s referred SME applications is $35,731,700.
• Conducted two entrepreneurship programs in cooperation with two leading universities
in Ninewa in which more than 502 students and alumni participated.
• Conducted meetings and technical assistance sessions with 10 agribusinesses from
Ninewa and northern Iraq.
• Established the Mosul Business Development Center (BDC), which now serves as
the base for meetings and SME trainings in Ninewa.
• Conducted a Ninewa Agribusiness Value Chain study.
• Commenced support to six Provincial Investment Commissions (PIC) of Baghdad,
Basrah, Najaf, Anbar, Wasit, and Ninewa, including the Kurdistan Region of Iraq’s (KRI)
Board of Investments.
• Conducted 85 various firm-level technical assistance activities to Ninewa and northern
Iraq businesses on production and quality management, barcoding and inventory, food
1 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOV
safety, digital and social media marketing, Lean Canvas business planning, feasibility
studies, and business registration.
1. OVERALL STATUS OF PROJECT PROGRESS TOWARDS
OBJECTIVES AND TARGETS
Below is a summary description of progress under each NIFI task:
ESTABLISH THE BUSINESS DEVELOPMENT CENTER
MOSUL BDC. NIFI established its second BDC in Mosul City, co-located with its partner Mosul
Space, a well-known business incubator. To kick off the program activities, NIFI conducted two in-
person training workshops at the new Mosul BDC on Lean Canvas business planning and marketing
for Ninewa businesses in October 2020. Fourteen business representatives (8 men and 6 women)
participated in both workshops. Additionally, NIFI conducted one-on-one technical assistance
sessions on Lean Canvas business planning with 18 participants (8 women and 10 men) of NIFI’s
Entrepreneurship Program with the University of Mosul to enhance their business plans. All 18
participants were University of Mosul students or alumni.
Despite COVID-19 restrictions during the reporting period, NIFI established initial contact with a
broad range of businesses and entrepreneurs in Ninewa and northern Iraq through its Mosul BDC
and remotely. NIFI continued screening and selecting the most appropriate businesses to support in
terms of technical assistance and financial facilitation. NIFI worked closely with selected businesses
and entrepreneurs to develop business diagnostic analyses to identify their constraints to doing
business and connect them with potential financing institutions as well as help them search for the
most appropriate investment opportunities, loans, or equity.
NIFI opened its Mosul BDC with an in-person Lean Canvas
Business Planning Workshop for seven SMEs in Ninewa.
ENTREPRENEURSHIP PROGRAM. NIFI conducted entrepreneurship programs with two
leading universities in Ninewa—University of Mosul where 365 students and alumni (262 men and
103 women) participated and Northern Technical University (NTU) where more than 137 students
and alumni (101 men and 36 women) participated.
• Outcome Example. After completing the Entrepreneurship Program with University of
Mosul graduates and alumni, NIFI conducted one-on-one technical assistance sessions
with 18 shortlisted entrepreneurs. NIFI reviewed business plans to ensure they contain
all the information for financing assessment before they were submitted to financing
USAID.GOV IGPA/NIFI SEMI-ANNUAL REPORT | 2
institutions. Among the 18 entrepreneurs, NIFI has so far referred one woman-owned
saffron startup project to an Erbil-based KH International Investment Company to
receive in-kind support worth $1,000 for soil fertilizers and equipment. NIFI conducted
the business planning sessions at its BDC in Mosul with BDC host Mosul Space taking
the lead in conducting the sessions.
MOSUL SPACE. NIFI co-located its BDC with Mosul Space to facilitate knowledge transfer from
NIFI to the local staff and thus help ensure the sustainability of BDS when the Project ends. NIFI
trained designated staff of Mosul Space as well as subject matter trainers on practical methods and
effective strategies to deliver online training. As a result, Mosul Space has capably delivered three
modules (Selecting and Working with Co-founders and Stakeholders, Lean Canvas Business Planning
and Developing and Presenting a Pitch Deck) that were favorably received by participants.
NIFI and Mosul Space conducted individualized sessions at the Mosul BDC with shortlisted student- entrepreneurs
from the first Entrepreneurship Program. The business plans were prepared for financing readiness.
PROVIDE BUSINESS DEVELOPMENT SERVICES
PROGRESS ON NIFI’S INVESTMENT COMMISSIONS TASK FORCE. NIFI collaborates
with IGPA/Takamul to build the capacity of Provincial Investment Commissions (PIC) in target
provinces. Commencing in January 2021, NIFI led the development of a capacity building program for
the PICs of Basrah, Najaf, Wasit, Anbar, Baghdad, Ninewa, and KRI Board of Investments (BOI). NIFI
designed the capacity development program around the assessment earlier conducted by IGPA.
In addition, NIFI gathered data on the PICs’ human resources and institutional structure, economic
profiles, and investment process workflow in order to revitalize the PICs investment toolkit. The
data will likewise inform the capacity building program being designed by NIFI. Related to this, the
Project conducted several meetings with the Ninewa PIC to complete their organizational and
provincial investment information. As of the end of February, NIFI has compiled the human
resources and organization information from Basrah, Najaf, and Ninewa PICs; completed the
economic profiles for Wasit and Ninewa PICs; and drafted the investment process workflow for
Ninewa.
At the same time, NIFI started the preparations for an investment planning retreat scheduled for
March 17 and 18. The event will gather the PICs from the above-mentioned six governorates and
3 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOV
the Kurdistan BOI to coordinate and agree on common investment approaches and an action plan,
taking into consideration the general investment climate in Iraq.
TRAINING WORKSHOPS AND FIRM-LEVEL TECHNICAL ASSISTANCE. NIFI
provided BDS to 69 businesses and enterprises with the participation of 154 individuals (104 men
and 50 women) from Ninewa and northern Iraq. The assistance included workshops and firm-level
technical support on production and quality management, digital and Facebook marketing, Lean
Canvas business planning, barcoding and inventory management, food safety based on Good
Manufacturing Practices (GMP) standards, feasibility studies, and access to financing.
Below is a summary description of NIFI’s training workshops and firm-level technical assistance and
examples of outcomes:
PRODUCTION AND QUALITY MANAGEMENT. NIFI conducted workshops and firm-level
technical assistance on production and quality management for 11 businesses (14 individuals) from
Ninewa and northern Iraq.
Outcome Example. NIFI helped Alaela Tahini to pinpoint the causes of high oil separation in
their tahini product. The Project and the company conducted multiple tests and analysis of
roasting times and temperatures and other aspects of the production process. The tests
determined that the company needed to adjust the roasting temperature. The tests were
well documented, and the processes will be shared with other tahini producers in Ninewa
so they can avoid the same mistake. Addressing this issue will have a positive impact on
tahini factories’ quality, sales, and profitability.
“Thank you, NIFI, for the valuable technical assistance. It is true that we’ve been working for 30 to
40 years in this field, and this is the first time we have applied advanced scientific methods, whether
they are chemical or physical methods,” said Alaela Tahini factory owner Abdulla Naif Darwish after
NIFI’s technical assistance.
NIFI compared and analyzed the results of tahini roasted at
different temperatures and will share the result of the production
experiment with other tahini producers in the province.
USAID.GOV IGPA/NIFI SEMI-ANNUAL REPORT | 4
BARCODING AND INVENTORY MANAGEMENT. NIFI conducted workshops and firm-level
technical assistance sessions for 18 businesses in Ninewa and northern Iraq. Inventory management
helps businesses ensure they have the right products in the right quantity, prevent stock-outs, and
avoid the costs of carrying excess inventory. Barcodes allow businesses to operate more accurately
and efficiently, enabling growth. Using barcodes allows businesses to process inventory much faster
than any other manual method.
Outcome Example. Dahuk-based RS Solar Power and Plumbing Equipment Company benefited
from the new inventory management system developed by NIFI, enabling them to organize
and track their raw materials and finished goods. NIFI installed the inventory management
program on the company’s computers.
“Thank you NIFI for this great session. In the absence of a proper inventory management system,
we often purchased materials or goods without knowing we already have them in our stores. Now
that we have an inventory system, we can avoid this mistake. This will help us reduce costs,” said
Hawer Subair Sulaiman, an employee of RS Solar Power Company.
FOOD SAFETY BASED ON GMP. NIFI conducted firm-level technical assistance for five food
processing businesses to address a common gap in food processing businesses in Ninewa and
northern Iraq. As part of this technical assistance, the Project provides target businesses with three
types of educational posters on personal hygiene, pest control, and handwashing in Arabic.
Outcome Example. All five food processing companies in Ninewa and northern Iraq committed to the
new food safety measures introduced by NIFI and implemented the recommendations they were
trained on. Also, all of them are using promotional and educational materials that NIFI provided such
as posters on personal hygiene, pest control and handwashing.
Educational posters such as the one above are distributed to food processing businesses in Ninewa
and northern Iraq as part of NIFI’s food safety program.
DIGITAL AND FACEBOOK MARKETING. NIFI conducted workshops and firm-level technical
assistance for 15 businesses and entrepreneurs. In today’s business world, Facebook presence is
essential to increase brand awareness, sales, and profitability and to find and keep customers. This
assistance teaches business owners to develop a business page, write and publish posts, respond to
5 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOV
messages, setup and launch advertising campaigns based on demographics and other criteria, and
measure the results.
Outcome Example. NIFI created at least five
Facebook pages for businesses based in
Ninewa and northern Iraq. Digital
marketing is one of the most commonly
requested assistance from NIFI, especially
by women entrepreneurs. Noor Ghazal,
administrator of Cosmetics and Painting
Facebook Pages, reached out to NIFI
requesting another social media marketing
training for 10 Ninewa-based women
entrepreneurs running small enterprises
such as children’s clothing, cooking
ingredients, flower shops, embroidery, A NIFI Facebook marketing firm-level technical
session with woman-owned Alkuba Alsharqiya food
handicrafts, online clothing, and a medical processing factory in Erbil.
clinic. Noor was a previous trainee of NIFI
and the positive benefits she derived for her business after applying what she learned from
NIFI’s social media marketing training inspired her to recommend the training to other
women.
“I told my women friends about NIFI’s Facebook marketing workshops. They got excited. I benefited
a lot to the extent that I am applying the knowledge I acquired from NIFI at my freelance work with
several online marketing companies. I am running Facebook pages for such companies now,
handling sponsored Facebook advertising, designing, and scheduling ad posts. Thank you so much
NIFI because you are always available to respond to our questions,” said Noor.
CASH FLOW PROJECTIONS. NIFI conducted cash flow projections firm-level technical assistance
for two businesses in northern Iraq. Cash flow management is the process of tracking how much
money is coming into and out of the business. This helps businesses spot trends, prepare for the
future, and ensure there is enough money to keep running.
Outcome Example. The financial projection firm-level technical assistance enabled businesses
to enhance their applications to financing sources guiding them to provide proper financial
information on operations and financial needs for the coming three years. An example is
NIFI’s assistance to Alghazal Dairy Factory documenting their financial projections for their
application to a GroFin loan and USAID Durable Communities and Economic Opportunities
(DCEO) grant program.
LEAN CANVAS BUSINESS PLANNING. NIFI conducted workshops and firm-level technical
assistance sessions for 22 start-ups in Ninewa. Lean Canvas is a one-page business plan template that
has gained international popularity in the start-up and entrepreneurship community. It has proven to
be useful for businesses across the entire range of complexity—from beauty salons to high tech
start-ups. It is adapted from Alex Osterwalder’s Business Model Canvas and replaces elaborate
business plans with a single page business model.
Outcome Example. All 22 start-ups created and enhanced their business plans based on the
Lean Canvas model that NIFI provided. Out of this number, a woman-owned saffron
USAID.GOV IGPA/NIFI SEMI-ANNUAL REPORT | 6
cultivation start-up, was referred to a local agricultural investor for $1,000 of in-kind
financing.
FEASIBILITY STUDIES. NIFI developed feasibility studies for three businesses in Ninewa and
northern Iraq in the food processing, soft drinks, and energy sectors. The Project developed the
feasibility studies for multi-million-dollar ventures on new projects, expansions, and spinoffs. NIFI
connected the businesses to institutional investors including the International Finance Corporation
(IFC), FinnFund, and Khudairy Group.
Outcome Example: NIFI discussed Hawkary Group’s financial needs with the IFC and
provided all required information to finance a $10 million loan.
BUSINESS REGISTRATION PROCEDURES IN
IRAQ. NIFI conducted workshops and firm-level
technical assistance for 11 businesses on
registering a business in Iraq and the KRI.
Businesses and entrepreneurs face significant
challenges when they try to register their
companies and this usually involves lengthy
processes, unclear steps and direction, and high
cost of registration. NIFI’s technical assistance
provides useful information and educates
businesses on these processes that will help them
save time and money.
NIFI met with the director of the Dahuk Health and
Outcome Example. NIFI assisted Alomeraa Protection Directorate to support Alomeraa Food
Processing Factory in obtaining approval for the
Food Processing Factory, a business based opening of a store in the province.
in Baashiqa Sub-district of Ninewa, to
register a branch in Dahuk. NIFI met with the director of the Dahuk Health and Protection
Directorate to obtain certifications and permits and guided the company in completing the
requirements for registration.
“I am grateful to NIFI for their support as I did not have any information about Dahuk’s regulations
and had no knowledge of the processes for opening a sales outlet in this province. I hope that my
products will be available in the markets of Dahuk soon,” said owner George Khalil Gergees.
TECHNICAL ASSISTANCE AND MEETINGS WITH AGRIBUSINESSES. Since its new agribusiness
adviser has deployed in February, NIFI has conducted meetings and technical assistance sessions with
10 agribusinesses from Ninewa and northern Iraq. The agribusinesses were Dilshad Family
Greenhouse Operation, Barani Factory for Tahini and Peeling and Roasting Sesame, Batam Nuts
Factory, a greenhouse for vegetables and herbs, Askandar Potato Farm, Slwan Saka Grape Farm,
Sangar Multi-Span Greenhouse Operation, an olive farm, KH for Trading and Agricultural Investment
and Erbil Food Distribution Center.
Outcome Example. Out of these 10 agribusinesses, NIFI signed two memoranda of
understanding with Slwan Saka Grape Farm and the olive farm in Erbil to develop feasibility
studies for establishing cold storage and processing facilities.
7 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOV
NIFI’s agribusiness adviser met with the owner of Slwan Saka
Grape Farm in Erbil and suggested a pilot cold storage as an
orderly marketing strategy.
FINANCIAL FACILITATION. During the reporting period, NIFI provided financial facilitation
services to 80 SMEs and entrepreneurs by preparing and referring a total of $35,731,700 in financing
applications (either loans or grants) in the last five months. NIFI referred the financial applications to
the USAID DCEO project, GroFin, Iraqi Islamic Bank (IIB), International Organization for Migration
(IOM), Marla Fund, National Bank of Iraq (NBI), and CEWAS, IFC, FinnFund, and Khudairi Group.
Some cases were referred to more than one source of financing. Out of the 80 referred applications,
four SMEs (two loans and two grants) were approved to receive financing totaling $168,000 during
that same period.
Outcome Example. NIFI assisted Yazidi-owned Hezheer Restaurant to obtain $60,000 from
GroFin’s COVID-19 Relief Fund to pay for 10 months of delayed rent and salaries. The
owner also used part of the loan proceeds to expand the restaurant now that business is
returning. The restaurant is located in Sinjar’s Sinune Subdistrict in Ninewa. NIFI helped the
owner evaluate the business’s financing needs and collect the required documents including
business registration and health department approvals. NIFI will be providing additional
technical assistance including Facebook marketing and food safety program based on GMP.
“Thank you, NIFI, for the outcome of your hard work and responsiveness. Without USAID and NIFI,
this financial assistance would not have occurred. I hope you can support more Yazidi-owned
businesses and I will put NIFI in contact with other Yazidi SMEs,” said Hezheer Restaurant owner
Ahmed Shingaly.
USAID.GOV IGPA/NIFI SEMI-ANNUAL REPORT | 8NIFI assisted Yazidi-owned Hezheer Restaurant in Sinjar to obtain $60,000 from GroFin’s COVID-19 Relief Fund,
enabling the company to continue operating after the lockdown.
Below is the list of NIFI’s referred SME applications to the financing resources mentioned above
during the reporting period:
# SME Name No. of Businesses Amount
1 DCEO 9 $1,615,000
2 GroFin 4 $1,350,000
3 IIB 5 $2,750,000
4 IOM 27 $466,820
5 Marla Fund 4 $104,940
6 NBI 24 $5,544,940
7 CEWAS 3 $900,000
8 Institutional Investors (IFC, FinnFund, 4 $23,000,000
Khudairi Group)
Total 80 $35,731,700
9 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOVThe four businesses who secured financing with NIFI’s assistance are as follows:
# SME Name Financing Type Location Amount Secured
1 Shad Group Co. for Contracts, GroFin COVID-19 Erbil $70,000
General Training, Logistics & Relief Loan
Catering Services
2 Hezheer Restaurant GroFin COVID-19 Sinjar - Ninewa $60,000
Relief Loan
3 Al-Kubba Al-Sahrqiya USAID Business Erbil $15,000
Accelerator Program
through Top Mountain
4 Black Ace Company for IT IOM’s Enterprise Sulaimaniyah $23,100
Services Development Fund –
Innovation
Total $168,000
NINEWA AGRIBUSINESS VALUE CHAIN STUDY. During the reporting period, NIFI’s
agribusiness value chain expert completed over 30 interviews with key stakeholders including
business owners, local officials, and academics. The final report included a list of the most promising
types of agricultural products in terms of potential for economic impact and an analysis of the
primary constraints faced by these agribusiness sectors. The final report also provided
recommendations to address value chain constraints including policy related obstacles as well as
firm-level constraints and weaknesses. Consistent with the study recommendations, NIFI has
engaged with several agribusiness firms through firm-level technical assistance including conducting
business opportunity and diagnostic gap analyses. NIFI’s agribusiness pipeline currently includes
processing and production of tahini, flour, olive oil, and potato products; fish breeding; and
agricultural spare parts manufacturing.
NIFI provides firm-level technical assistance,
helping Mosul-based Al Watanya Dairy
Factory to apply for financing from the
USAID.GOV Islamic Bank of IraqSEMI-ANNUAL
IGPA/NIFI and implement social |
REPORT 10
media marketing.CONDUCT NINEWA INVESTMENT FORUM (NIF)
FOLLOW UP ON NIF-FEATURED SMES
• NIFI continued to work with the NIF-featured SMEs that were redirected to GroFin for
financing. The following is the status and latest actions taken to facilitate these transactions:
Amount
# SME Name Status Location
Requested
Under process. NIFI helped Al-Ghazal Dairy
complete an updated three-year cash flow
Al-Ghazal projection required by GroFin. The owner Hamdaniya -
1 $600,000
Dairy travelled to Turkey to finalize the machine and Ninewa Plains
production line selection and order. GroFin is still
reviewing the application.
Review pending submission of complete
documents. NIFI helped Samim Tahini comply with Bashiqa - Ninewa
2 Samim Tahini $504,000
additional documentation requirements from Plains
GroFin.
Review pending submission of complete
documents. GroFin requested new dated
ownership documents for the collateral and met
Bashiqa - Ninewa
3 Alaela Tahini with all the shareholders. Alaela Tahini started the $600,000
Plains
documentation renewal process and is scheduled
to submit their full papers to the registration office
in Bashiqa.
Awaiting review; all documents submitted. NIFI
assisted TeamMart to submit all required updated
4 TeamMart Erbil $2,000,000
documents to GroFin. GroFin is reviewing the
application.
2. STATUS OF OVERALL PROJECT PROGRESS PER THE
APPROVED INDICATORS
Progress towards NIFI’s two approved indicators is summarized below.
Indicator 1: Number of enterprises that access or mobilize financing as a result of USG
assistance.
NIFI facilitated financial deals for the following four SMEs from its the pipeline during the reporting
period. This brings the total number of SMEs for which NIFI mobilized financing to 39 enterprises,
meeting 60% of the Project goal.
Amount
# SME Name Financing Type Location
Secured
Shad Group Co. for Contracts, General
1 GroFin COVID-19 Relief Loan Erbil $70,000
Training, Logistics & Catering Services
2 Hezheer Restaurant GroFin COVID-19 Relief Loan Sinjar - Ninewa $60,000
USAID Business Accelerator
3 Al-Kubba Al-Sahrqiya Erbil $15,000
Program through Top Mountain
IOM’s Enterprise Development
4 Black Ace Company for IT Services Sulaimaniyah $23,100
Fund – Innovation
Total $168,000
11 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOVIndicator 2: Number of firms receiving USG-funded technical assistance for improving
business performance.
During the reporting period, NIFI provided BDS to 69 new firms with 154 participants. This brings
the total number of SMEs that received USG-funded technical assistance to 326 firms, meeting 75%
of the Project goal. A summary of the 69 firms per type of BDS rendered is presented below.
# of Gender of Business
Enterprise Location Type of BDS
Enterprises Owner
28 Ninewa and KRI 3 women and 25 men Digital and Facebook Marketing
3 Ninewa and KRI 3 men Feasibility Studies
17 Ninewa and KRI 1 woman and 16 men Cash Flow Projection
24 Ninewa and KRI 3 women and 21 men Barcoding and Inventory Management
44 Ninewa and KRI 32 women and 12 men Lean Canvas Business Planning
11 Ninewa and KRI 6 women and 5 men Company Registration in Iraq and KRI
26 Ninewa and KRI 5 women and 21 men Production and Quality Management
1 Ninewa and KRI 1 man Oil Separation Test in Tahini
3. SUMMARY OF COMPLETED ACTIVITIES AND PROGRESS
TOWARDS RESULTS
NIFI completed most of the NIF’s task activities and brought about the following results:
• GroFin is reviewing several loan applications from SMEs that connected with GroFin as a
result of the NIF. See details under Task 3 of Section 1 of this report.
• NIFI is working closely with GroFin, NIB, IIB, DCEO, and other institutional investors
including IFC, FinnFund, and Khudairi Group to arrange matchmaking events with potential
borrowers.
The following is a summary of completed NIFI overall activities:
NIFI COMPLETED & UPDATED ACTIVITIES
ACTIVITY NAME OUTCOME
ESTABLISH BUSINESS DEVELOPMENT CENTER
Erbil and Mosul BDCs are operational and have
become focal points for SME access to NIFI’s services.
Establish one or more BDC in Ninewa SMEs receive BDS through the BDCs such as training
and/or Erbil. workshops and firm-level technical assistance. Pop-up
BDCs have also served as venues for NIFI promotional
and financial facilitation workshops in Ninewa.
The digital BDC has launched under the program
Launch and maintain a digital BDC. website www.biz-iraq.com on which business
resources and investment opportunities are uploaded.
USAID.GOV IGPA/NIFI SEMI-ANNUAL REPORT | 12Reviewing existing analysis on Ninewa Ongoing reviews and analyses of research on the
Province. investment environment in Ninewa.
Develop SMEs selection and evaluation NIFI created and used selection criteria to select SMEs
criteria. to be showcased at the NIF.
NIFI developed an SME database and utilized it for the
Create SME Database.
NIF.
NIFI continues identifying new investors. Referrals of
SME applications are presented to investors monthly
Identify potential investors.
such as KH International Investment Company,
Khudairi Group, IFC, FinnFund, and others.
Establish a referral and matchmaking NIFI forged several new relationships with
mechanism with international international investment institutions such as NIB, IIB,
investment institutions and capital DCEO, and CEWAS to match and refer SME financing
lending entities. applications from its pipeline.
NIFI continues to work with the Iraqi diaspora in the
Facilitate outside investor interest in US. It also started discussions to host a virtual event
Ninewa, particularly US-based investors. for AmCham Kurdistan member companies including
their US-based Iraqi-American investors.
NIFI launched its support to six Provincial Investment
Work with both public and private Commissions in Basrah, Najaf, Wasit, Baghdad, Anbar,
sectors to mitigate systemic constraints and Ninewa as well as to KRI’s Board of Investments
to business growth and investments. to enhance the investment environment in the
country.
NIFI maintains a database of investment opportunities
Maintain an online database of
on its digital BDC under the program website
investment opportunities
www.biz-iraq.com.
Create a list of barriers to investment
NIFI identified a list of barriers and is continuously
experienced when connecting investors
updating this list while work is still ongoing.
to businesses
In addition to the 19 SMEs showcased at the NIF, NIFI
Develop marketing materials for developed several marketing materials including
selected businesses. business plans, social media marketing, and
promotional materials for SMEs.
PROVIDE BUSINESS DEVELOPMENT SERVICES
NIFI provided technical assistance to several
businesses on Barcoding and Inventory Management,
Provide technical assistance and advisory Business Registration in Iraq, Cash Flow Management,
to select businesses. Food Safety Based on GMP, Production and Quality
Management, and Digital and Social Media Marketing.
For details, see Section 1 of this report.
NIFI developed specific and tailored training
workshops including Financial Literacy for Women
Develop and deliver tailored BDS Entrepreneurs, Access to Finance, Business
training modules. Performance Improvement, Barcoding and Inventory
Management, Business Registration in Iraq, Cash Flow
Management, Food Safety Based on GMP, Production
and Quality Management, and Digital Marketing.
13 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOVDuring the reporting period, NIFI conducted eight
workshops and two trainings for a total of 69
businesses from Ninewa and northern Iraq.
NIFI secured financing for four SMEs from Ninewa and
northern Iraq worth $168,000 and referred 80 SME
applications to financing institutions that are worth
Facilitate financing for SMEs.
more than $35 million total. Since its inception, NIFI
managed to close 39 financing deals that are worth $1
million.
Conduct entrepreneurship and start-up NIFI completed two Entrepreneurship Programs with
programs. the University of Mosul and NTU.
Build the capacity of private banks in NIFI is in the process of planning an activity with Iraq
SMEs credit. Private Banks League (IPBL).
Strengthen banks’ SME credit policies
NIFI is in the process of planning an activity with IPBL.
and procedures.
A NIFI staff observes the work processes at the
Barany Factory, a Yazidi-owned tahini
enterprise, to design firm-level technical
assistance for the factory.
USAID.GOV IGPA/NIFI SEMI-ANNUAL REPORT | 144. LIST OF REPORTS/DELIVERABLES COMPLETED
During the reporting period of October 2020 to February 2021, NIFI submitted 21 weekly progress
reports and five monthly reports as follows:
DELIVERABLE TITLE SUBMISSION DATE STATUS
NIFI Progress Reports Weekly USAID approval not needed
NIFI Monthly Reports Monthly USAID approval not needed
5. EXPLANATION OF QUANTIFIABLE OUTPUTS OF THE
TASKS, IF APPROPRIATE AND APPLICABLE.
This information is covered in Section 1, 2, and 3 of this report.
6. STATUS OF BUDGET EXPENDITURES AND ANALYSIS OF
ANY COST OVERRUNS OR HIGH UNIT COSTS
7. PROBLEMS AND MITIGATING ACTIONS
NIFI has not encountered specific challenges that would lead to impeding the implementation of its
project in Ninewa during the reporting period. However, due to COVID-19 restrictions, NIFI faced
challenges in conducting its in-person activities including training workshops and firm-level technical
assistance to SMEs in Ninewa. NIFI responded to the challenges by rapidly pivoting to a program of
more frequent remote technical assistance workshops and focusing its financial facilitation efforts on
sources of financing currently active on the ground, facilitating funding for SMEs that were negatively
impacted by the pandemic. NIFI was successful in securing two COVID-19 Relief Fund contributions
from GroFin for two SMEs from its pipeline as mentioned under Section 1 of this report. In addition,
NIFI ramped up its social media marketing workshops to help businesses leverage the internet to
promote their products and remain connected to their customers remotely.
Starting in September 2020, with the lifting of the COVID-19 travel restrictions and the willingness
of staff and business owners to meet face-to-face, NIFI has been able to steadily build up its pipeline
of SMEs that are receiving technical assistance and financial facilitation services aimed at helping them
realize growth opportunities.
15 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOVWhile the supply side of SME finance remains weak given Iraq’s risk profile and the continuing impact
of COVID-19, NIFI is building the self-reliance of SMEs at the firm level to help them survive the
COVID-19 pandemic, prepare for better times ahead, and, in some cases, realize growth. NIFI is
helping SMEs adopt best business practices essential to competing in increasingly competitive
markets and achieving organic growth as well as becoming bankable or investment ready (i.e., the
ability to access financing and absorb additional capital to support expansion and growth).
Potential further lockdowns and travel restrictions due to the spread of the new strain of COVID-19
in Iraq could delay some program activities focused on providing firm-level technical assistance.
Other general problems that NIFI identified during the reporting period include:
Investors are becoming more cautious and tighter in their investment policies and outlook towards
Iraq. For instance, the IFC has limited their financing to debt instruments 100% collateral-based
including movable and immovable assets. FinnFund has expressed a careful approach to Iraq by
saying, “We have just recently updated our strategy for fragile states and presently we have higher
requirements on development impact aspects than previously. This means that we will be even more
selective in our approach, especially in more developed countries, like Iraq.”
The challenges and impediments to private sector growth that existed before COVID-19 remain. In
the World Bank’s Ease of Doing Business rankings for 2020, Iraq ranked 172nd out of 190 countries
and ranked 186th in “getting credit,” revealing a severe lack of access to finance for both established
businesses and new entrepreneurs. Iraq ranks 153rd out of 174 countries in the Euromoney Country
Risk investment rankings.
Other impediments include a lack of infrastructure, an inefficient and bloated public sector,
inadequate trade policies, a shortage of skilled labor, the low rate of participation of women in Iraq’s
labor market, and high levels of corruption that are a real economic and financial cost to doing
business in Iraq. Iraq is ranked 162nd out of 180 countries in Transparency International’s Corruption
Perceptions Index.
8. ANY RELEVANT CONSTRAINTS OR IMPEDIMENTS THAT
HAVE AFFECTED OR WILL AFFECT PROJECT
PERFORMANCE
None.
9. LIST OF MAJOR ACTIVITIES PLANNED FOR THE NEXT SIX
MONTHS
IGPA/NIFI is planning to conduct the following events, training workshops and firm-level technical
assistance sessions in the upcoming months:
• GMP. NIFI launched its Food Safety Based on GMP technical assistance program for 18 food
processing companies in Ninewa and northern Iraq during February. The program will
continue in the coming months. It aims to address a common gap for many food processing
businesses. The target SMEs will come from the tahini, packaged food, pickles, dairy, flour,
molasses, nuts, and ice cream production sectors. As part of this technical assistance, NIFI
will provide these businesses with three types of educational posters on personal hygiene,
pest control, and handwashing in Arabic.
USAID.GOV IGPA/NIFI SEMI-ANNUAL REPORT | 16• Capacity building for banks. NIFI is working with the IPBL to determine possible capacity
building activities including training and revision of bank policies and procedures related to
SMEs finance.
• Digital Marketing. A professional-looking website and social media presence is essential
for SMEs to find customers and earn their confidence. This training workshop will lead
participants through the process of determining what digital marketing assets they need for
their businesses. The training workshop output will be a summary digital marketing plan for
each participating business.
• Investment planning for PICs. As of February 2021, NIFI started preparations for an
investment planning retreat scheduled for March 17 and 18. The event will gather the PICs
from Baghdad, Basrah, Anbar, Najar, Wasit, and Ninewa as well as KRI’s BOI to coordinate
and agree on common investment approaches and action plans, taking into consideration the
general investment climate in Iraq. Below is the date, title, and location of NIFI’s training
workshops:
DATE WORKSHOP TITLE LOCATION
Digital and Facebook Marketing workshop for
April 4 Remote
businesses selected by AmCham Kurdistan
Retreat for PICs from Baghdad, Basrah, Anbar,
March 17-18 Erbil
Najaf, Wasit, and Ninewa as well as KRI’s BOI
Facebook marketing workshop for ten women
March 25 Remote
entrepreneurs from Mosul
10. LIST OF MEETINGS, WORKSHOPS, AND OTHER
ACTIVITIES WITH POTENTIAL INVESTORS,
GOVERNMENT INSTITUTIONS, DONORS, AND NGOS
See Section 9 above.
11. REASONS WHY ESTABLISHED TARGETS WERE NOT MET,
IF APPROPRIATE
Not applicable.
12. PROJECTED USAID APPROVALS, WAIVERS, OR
DEVIATION REQUESTS ANTICIPATED DURING THE NEXT
SIX MONTHS
Not applicable.
13. AS APPLICABLE, CONFIRMATION THAT TRAINET
REPORTING REQUIREMENTS ARE UP TO DATE
USAID has recently replaced TraiNet with TEAMS on which NIFI will conduct introductory sessions
including distribution of TEAMS tutorials to explain its features, show what the application looks like,
17 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOVand demonstrate how to enter data. The data entry and verification will be managed by the IGPA/NIFI Monitoring, Evaluation, and Learning (MEL) unit. As for Geo-MIS, IGPA/NIFI understands that this system is only applicable in West Bank and Gaza. USAID.GOV IGPA/NIFI SEMI-ANNUAL REPORT | 18
ACRONYMS BDC Business Development Center BDS Business Development Services BOI Board of Investment DCEO Durable Communities and Economic Opportunities GMP Good Manufacturing Practices IDP Internally displaced person IFC International Finance Corporation IGPA Iraq Governance and Public Accountability IIB Iraqi Islamic Bank IOM International Organization for Migration IPBL Iraq Private Banks League KRI Kurdistan Region of Iraq MEL Monitoring, evaluation, and learning NBI National Bank of Iraq NIF Ninewa Investment Forum NIFI Ninewa Investment Facilitation Initiative NTU Northern Technical University PIC Provincial Investment Commission SME Small and medium enterprise TO Task Order USAID United States Agency for International Development USG United States Government 19 | IGPA/NIFI SEMI-ANNUAL REPORT USAID.GOV
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