IOM’s Enterprise Development Fund (EDF) is an innovative programme that supports livelihoods at the community level through private sector revitalization and economic development by targeting small and medium-sized enterprises (SMEs) in Iraq. 

The EDF provides financial capital to SMEs in primary, secondary, and tertiary economic sectors with a high demand for labour, with the objective of post-conflict economic recovery and inclusive economic development. Concurrently, targeting key sectors and businesses with the greatest potential to create jobs, the EDF encourages rapid and large-scale job creation. 

SMEs are limited by a lack of access to finance in Iraq. War, economic crisis, the COVID-19 pandemic have all contributed to destruction and loss of infrastructure and economy, worsened by the fact that finances to rebuild and recover are severely restricted for the affected SMEs. The EDF addresses this critical gap which limits the capacity for businesses to expand and hire new workers. Considering that 60 per cent of jobs in Iraq are concentrated in the private sector and that 

the public sector is unable to absorb new entrants to the economy, a focus on SMEs remains critical for the development of Iraq.