Iraq faces a persistent gap between its people and the financial system.
Banks have long leaned on large state-owned institutions, credit has flowed
mainly to established borrowers, and micro and small businesses along with
women entrepreneurs and displaced communities have been largely left out.
ProDIGI project, full name Promoting Employment in the Digital and Green
Economy in Iraq, is trying to change that in a practical, grounded way.
ProDIGI is a multi-donor initiative commissioned by the German Federal
Ministry for Economic Cooperation and Development (BMZ), co-financed by
the European Union, and implemented by the Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH. The project covers central and
southern Iraq as well as the Kurdistan Region, with a focus on areas where
joblessness, displacement, and limited access to services overlap.
Within the project, Output 3 targets the financial inclusion side of the
challenge. The starting point is a clear-eyed look at what the sector lacks:
financial service providers that are capable, willing, and equipped to design
products that fit the people they are supposed to serve. Banks and
microfinance institutions in Iraq today mostly offer standardised products with
high collateral requirements and limited digital capabilities. Reaching women
led small businesses, rural communities, or young entrepreneurs running
green or tech ventures requires a different kind of product, and often a
different kind of institution.
To bridge that gap, the project works directly with Iraqi financial service
providers: banks, microfinance institutions, digital payment companies,
fintechs, and government lending programmes. The approach combines
needs assessments, hands-on advisory services, staff training, product
design support, and pilot testing. The goal is not to deliver a finished product
from outside, but to build the knowledge and process capacity within each
institution so that change remains after the project ends.
By the close of the assignment, at least three new or significantly adapted
financial products must be in place, and these products must be actively
reaching real users at a minimum of 950 individuals and 50 companies. The
work also emphasises gender equality: women-led businesses are a priority
target group, and all capacity-building activities must include a meaningful
share of women participants.
The broader context matters too. Iraq's Central Bank launched the national
financial inclusion strategy that encourages digital payments, SME lending,
and consumer protection improvements. ProDIGI project aligns directly with
those priorities, making it both a practical intervention at the level of individual
institutions and a contribution to the country's wider financial sector
development.
The selected firm will work directly with three to five financial service providers
(FSPs) operating in Iraq. These may include commercial banks, microfinance
institutions, digital payment providers, fintechs, and government lending
schemes. GIZ will have pre-selected up to two FSPs before the contract
starts, so work can begin without delay. The remaining FSPs will be selected
by the contractor and GIZ jointly, based on agreed criteria.