N E T W O R K O F E N T E R P R I S E

D E V E L O P M E N T C E N T E R S

O F I R A Q

T H E B O O K L E T

UNITED NATIONSINDUSTRIAL DEVELOPMENT ORGANIZATION

The Enterprise Development Centers and UNIDO Enterprise Development & Investment Promotion Programme for Iraq are funded by the Italian Development Cooperation

PARTNER INSTITUTIONS

E N T E R P R I S ED E V E L O P M E N T

C E N T E R S

The Network of Enterprise Development Centers (EDCs) of Iraq comprises business services providers jointly established by the United Nations Industrial Development Organization (UNIDO) and local host-institutions. The EDCs are deeply embedded in the local institutional context and they derive their strengths through the bundling of different local capacities developed through the UNIDO Enterprise Development & Investment Promotion Programme for Iraq. EDCs are trusted partners in the local SME development framework, acting as “one-stop-shops”

catering for diverse enterprise support needs.

THI QAR

Al Nasseriyah Chamber of Commerce+964 780 008 4038

thiqar@iraqedc.orgpmu@iraqedc.org

BAGHDAD

Ministry of Industry and Minerals+964 181 62006 - ext.3104

baghdad@iraqedc.orgpmu@iraqedc.org

BASRA

Basra Chamber of IndustryManawi Basha

+964 780 100 7126pmu@iraqedc.org

ERBIL

KRG Ministry of Trade and Industry+964 750 445 3650

erbil@iraqedc.orgpmu@iraqedc.org

H O S T - I N S T I T U T I O N S

The Enterprise Development Centers (EDCs) were established within the ambit of the UNIDO’s Enterprise Development & Investment Promotion Programme for Iraq. The Programme was designed to support the development of a sound private sector in Iraq and to encourage investment in Iraq. It is composed of three interlinked projects, spanning a time period from 2007 to 2016 and with an overall project volume of more than 10m USD. Each project complemented the other, and consolidated, reinforced and expanded the achievements of the previous one.

Launched in 2007, the “Enterprise Development and Investment Promotion in Iraq” (EDIP) project led the way by focusing on creating a cadre of local experts on enterprise development and investment promotion, who in turn provided business training and counselling to Iraqi SMEs as well as help local SMEs to find foreign partner for mobilizing domestic and foreign investment through B2B events and facilitation of international partnership match-making. These experts became the core trainers, counsellors, and Investment Promotion experts of the EDCs. In the immediate follow up of the EDIP, in 2010, the “Investment Promotion for Iraq” (IPI) project was launched, strengthening the existing enterprise development and investment promotion services of the EDCs and introducing new services such as UNIDO’s Subcontracting Partnership eXchange tools and methodologies and the Computer Model for Feasibility Analysis and Reporting (COMFAR). In 2011, the Enterprise Development through Information and Communication Technologies (EDICT) project was launched to introduce e-learning courses for Iraqi entrepreneurs to increase the project outreach.

H I S T O R Y

KRG Ministry of Trade and Industry

Ministry of Industry and Minerals

Nassiriyah Chamber of Commerce

Basra Chamber of Industry

2007Enterprise Development and Investment Promotion in Iraq (EDIP) Project

2008Enterprise Development Centers in Baghdad, Erbil and Thi Qar are established

2009Investment Promotion for Iraq Project (IPI)

2010Investment Promotion through Information and Communication Technologies (EDICT)

M I L E S T O N E S

2012Opening of ICT Poles equipped with desktops computers and video conference system and introduction of E-learning courses

2013Expansion of EDC Network to Basra

2014Capacity building for the Iraqi Federation of Industries HQ

• Upgrade competitiveness of

SMEs

• Facilitate creation of new enterprises

• Develop/strengthen institutional

capabilities in the areas of enterprise

development

ENTERPRISE DEVELOPMENT

AND INVESTMENT PROMOTION

INVESTMENT PROMOTION FOR

IRAQENTERPRISE

DEVELOPMENT THROUGH

INFORMATION AND COMMUNICATION

TECHNOLOGIES

• Introduction of e-learning

courses for Iraqi

entrepreneurs to increase the project outreach

• Strengthening the existing enterprise

development and investment

promotion services of

the EDCs and introduction of

new services

T H E P R O G R A M M ET H E P R O G R A M M E

EDIP IPI EDICT

GoI & KRG Level• Focal Points• Service Providers• Local Institutions

UNIDO LevelProject Management Unit (UNIDO-Iraq Office)• Senior Programme Coordinator• Associate Programme Coordinator• Programme Admin & Logistic Officer

S T R U C T U R E O F T H E E D C s

HEAD OF EDCAssigned by the Host Institution

UNIDO Local Coordinator

Administrative Assistant

BusinessCounselorsTutors IP Expert SPX Expert

ICT POLE Team of Trainers for Training of Entrepreneurs

Team of Counselors

S E R V I C E S

Training of Entrepreneurs EDCs offers various training courses on topics such as entrepreneurship skills development, investment rules and regulations, accounting, marketing, and enterprise management.

Business Counselling and AdviceOne-to-one counselling sessions with EDC experts are held to discuss the specific needs and requirements of individual entrepreneurs aiming to establish and/or expand their business. These sessions allow entrepreneurs to translate their business ideas into presentable business plans, approach public institutions for registration and licensing, and be better placed to approach financial institutions for access to finance.

Investment PromotionEDCs support enterprises in establishing international partnerships with foreign companies in areas such as, but not limited to, market access, technology transfer and joint ventures. The EDCs promote the investment profiles and project proposals from Iraqi SMEs at international network events, helps organize study tours to business events abroad and supports bilateral business negotiations on demand.

E-learningWeb-based training sessions are offered through an online distance-learning platform where entrepreneurs receive training courses on entrepreneurship and management as well as receive online business advice. EDCs also host a technology pole and tutors to incease accessibility for e-learning activities.

Subcontracting Partnership eXchange

SPX is a technical cooperation programme with objective of helping local enterprises to successfully meet the challenges of globalization and to take advantage of the emerging opportunities that evolve from industrial subcontracting, outsourcing and supply chain opportunities. The UNIDO SPX Network thus serves to provide an important platform for the matchmaking of suppliers and buyers across the globe.

Employment Generation

Foster Local Investment

Institutional Setup

Provision of advisory services to SMEs

(Business Counselling)

Provision of financial linkages services to SMEs

(Financial Counselling)

Provision of enterprise creation services

Provision of enterprise growth/upgrading services

E D C D E V E L O P M E N T I M P A C T

The cumulative development impact of UNIDO Enterprise Development and Investment Promotion Programme for Iraq since 2007 can be observed by the below indicators.

No. of Entrepreneurs trained- Classroom 902

No. of Entrepreneurs trained- Online 468

No. of Entrepreneurs provided with business advisory services 649

No. of Iraqi SMEs supported in partnership match-making 319

No. of International business delegations organized for Iraqi SMEs 18

No. of MoUs/LoIs signed with foreign partners 65

No. of capacity building initiatives taken 48

No. of Iraqi experts trained 200

Amount of domestic investment mobilized 42 Million USD

No. of employment created 1400

E D C D I S P L A Y W I N D O W

EDCs PROVIDING MULTI-DIMENSIONAL SUPPORT TO LOCAL SMEsEDCs are committed to develop both the soft and hard skills of the Iraqi companies. Besides the various training courses both online and offline, business advisory services, investment promotion match-making, buyer-supplier match-making, facilitating linkages etc., EDCs also facilitate certification of the Iraqi SMEs in Quality Management, Occupational Health & Safety Advisory Services, Environmental Management, Integrated Management System, and Auditing. Under the agreements signed by EDC Basra and ISO certification providers in Iraq, all supplier registered to the UNIDO SPX Programme receive 30% discount for ISO certification. The EDCs hold workshops on ISO certification to raise awareness about the benefits of meeting international standards and encourage certification.

EDCs try to help Iraqi entrepreneurs overcome some of the most common obstacles they are facing in their efforts to expand their business. In particular, access to finance has been the leading bottleneck for the Iraqi SME sector for decades. The EDC Basra signed a MOU with GroFin for disbursement of loans to SPX suppliers up to 2 million USD with repayment period up to 5 years. GroFin also pledged to provide technical support and advice to SPX Iraq suppliers.

A snapshot from the ISO 9001 Quality Management System Workshopat the EDC Thiqar.

EDCs ENCOURAGING LOCALIZATIONIn recognition of the fact that localization is mutually beneficial for both Iraqi industries as well as for the foreign investors in Iraq, the EDCs pro-actively engage in encouraging localization. Given the very modest share of expenditures the Iraqi SMEs are receiving from the International Oil and Gas Companies (IOGC) in comparison to other oil and gas producing developing countries, Oil and Gas sector was a natural starting point for intervention. EDCs Basra and Thi Qar organized meetings with Exxon, Lukoil, Hyundai Oil Company, Petronas, and Shell to explain how they can provide a reliable pool of suppliers for local procurement, design training modules to help Iraqi SMEs meet the procurement standards and requirements of the IOGC, and about wider partnership in realization of corporate social responsibility commitments of the IOGCs. The EDCs also brought on board business associations such as Business Union (BU) and Contractors Federation (CF) in their meetings with the IOGC for a more representative and inclusive local business presence. The EDC agreed with the IOGC to collect procurement lists in advance, tender schedule and holding custom trainings designed with strategic guidance of the IOGC.

EDC team meeting with the PETRONAS delegation.

EDCs ALLURE FOREIGN BUSINESSES INTO IRAQThe EDCs play an important role in encouraging foreign businesses in re-thinking the opportunities of investing in Iraq by revealing the local business environment and investment climate which varies greatly across the country, alleviating mis-perceptions fed by generalizations and stereo-types. By placing themselves as experienced, reliable and reputable intermediaries, EDCs provide the foreign companies with the confidence to visit and eventually invest in Iraq. At various times the EDCs hosted foreign companies in their governorates, arranging, facilitating and intermediating B2Bs with Iraqi companies and following up in the aftermath of the visits. Remarkable delegations include the Italian Union of Chambers of Commerce, Cairo Chamber of Commerce and Industry, and Shiraz Chamber of Industry.

A foreign businessman presenting his company at the premises of the EDC Erbil.

EDCs REACHING OUT TO INTERNATIONAL PARTNERSThe EDCs are building international institutional relationship and partnerships both individually and collectively to achieve synergies both within Iraq and abroad. EDCs represented their entrepreneurs collectively in UNIDO booths at renowned fairs such as Baghdad International Fair, MidEst Industrial Exhibition and Hannover Messe. UNIDO also provides support in organizing high level awareness and networking events such as the Italy-Iraq Investment Forum held at Rome in 2012 under the auspices of His Excellency Under Secretary of Foreign Affairs of Italy and former UN Special Representative of the Secretary General for Iraq Mr. Staffan de Mistura and the German-Iraqi Partnership Forum held within the sidelines of the Hannover Industrial Fair in 2015 under the auspices of His Excellence Ambassador of Iraq to Germany Dr. Hussain M. Fadhlalla Alkhateeb.

Further, EDCs organized delegations abroad through partnerships with various fair organizers, participating to numerous fairs through their own independent initiatives including:

Event Date LocationFakuma for Plastic Products and Machinery 13-17 October 2015 StuttgartMOTEK for Manufacturing Assembling Lines 5-8 October 2015 StuttgartKielce Bike Expo 25 September 2015 KielceEXPO Milano 14-18 September 2015 MilanoExpo Brno 13 September 2015 BrnoIstanbul Water Expo 3-5 September 2015 IstanbulCNR Poultry Technology Fair 11-13 June 2015 IstanbulCraft Industries Fair 1-10 June 2015 CairoPakistan Auto Show 2015 6-8 March 2015 KarachiFOTEG Fair 5-8 March 2015 IstanbulSIGEP Exhibition 17-21 January 2015 RiminiIran International Water and Waste Water Exhibition 17-20 November 2014 TehranIran International Electricity Exhibition 8-11 November 2014 TehranTaipei International Plastics and Rubber Industry Show 3 October 2014 TaipeiDubai Export Fair 1 October 2014 DubaiMarmomacc Natural Stone Industries Exhibition 24-27 September 2014 Verona

Rapprochement with foreign trade missions has also been an important part of EDCs contribution to bi-lateral trade relations between Iraq and various countries. EDC staff visited trade missions of Italy, Germany, Slovakia and the United States in 2015 to introduce the EDC network and explore areas of cooperation and collaboration for the mutual benefit of local SMEs and international companies operating in Iraq. EDCs also hosted numerous

EDC Basra Team visiting the US Consulate in Basra and met with the Deputy Consul General and the Economic Section Chief. (May 2015)

His Excellency Ambassador of Iraq to Germany Dr. Hussain M. Fadhlalla Alkhateeb is being briefed by UNIDO Iraq Programme Manager Mr. Stefan Kratzsch at the UNIDO

booth Iraq section during the Hannover Industrial Fair 2015.

foreign missions such as, but not limited to, the Italian Consul and Italian Trade Commission representative, the Commercial Attaché of Iran and the Romanian Ambassador and Commercial Attaché.

PROVINCIAL GOVERNMENTS CHOOSE EDCs FOR CAPACITY DEVELOPMENT SUPPORTThe EDCs have built a strong reputation among their local communities gaining appreciation from local officials. The participation of officials from various local governmental bodies is testament to the trust laid upon the EDCs. The provincial agencies that sent their staff to EDC trainings include, but not limited to, Federal Ministry of Industry and Minerals, Basra Electricity Directorate, Board of Investment of Erbil, and Thi Qar Provincial Investment Commission. Further, Basra and Thi Qar EDCs signed contracts with the Governorate of Basra and Thi Qar Health Directorate (THD) respectively for the preparation of customized training courses and to develop the skills of the staff in business operations management, moving closer towards becoming centers of excellence and trainer of choice for leadership and organizational development for both private and public sector.

Entrepreneurs and provincial government officials during a training session at EDC Erbil.

EDCs EMBRACING VULNERABLE GROUPSThe EDCs are not shirking off from their social responsibility; vulnerable groups of the society are also provided support by the EDCs. In addition to ensuring that youth and women are properly represented in the trainings courses held at the EDCs, activities solely for these groups are also organized. A first was achieved when EDC Thiqar with the Nassiriyah Chamber of Commerce organized the 1st Women Crafts and Design Show during June 2015.

The potential of women entrepreneurs remains largely untapped in Iraq with many lacking access to the financial services, skills and opportunities they need to become successful business owners. The show was organized as part of the continuing support for women to have equal opportunities to engage in business and the freedom to be economically and socially independent and equip women entrepreneurs with the tools to help them start and grow their own small businesses. During opening of the show, The Governor of Thiqar has delivered a strong message to local institution and companies to enable women to fulfill their potential share in development of private sector. In a similar initiative, EDC Basra organized a series of free-of-charge textile training courses for women, particularly aiming at the widow, divorced and poor, in April and May 2015. These courses served to develop creative skills in textile design and also supplied the participants with a starter kit that include a sewing machine and materials. Having received the necessary start-up elements, the participants are enabled to start and grow their own businesses and become able to support their families.

The Vice Governor of Basra, Mr. Mohammed Al-Tamimi handed out the certificates to the graduates, 9 Iraqi women received this vocational training, and in addition to that Mr. Tamimi expressed his gratitude to UNIDO’s continuous support to the EDCs.

Women displaying their handcrafts at the 1st Women Crafts and Design Show

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