SheCan Iraq: Bridging the financial inclusion gap for vulnerable populations
Lucy Bloxham
In Iraq, where the echoes of conflict and the challenges of rebuilding persist, the World Food Programme’s SheCan initiative is pioneering financial inclusion to empower vulnerable populations and foster economic resilience.
SheCan, an innovative finance initiative launched by the World Food Programme (WFP) Innovation Accelerator, is taking steps to break down the barriers that have long kept vulnerable populations from accessing formal finance. This pioneering initiative, first piloted in Peru, Rwanda and Zambia in 2022, is now taking root in Iraq, bringing with it the promise of financial empowerment and economic resilience.
Breaking the chains of financial exclusion
Many people in Iraq, particularly women and smallholder farmers, face systemic barriers to accessing credit. This means that the simple act of securing a micro-loan to expand a business is out of reach. Financial exclusion perpetuates poverty, trapping families in a vicious cycle. SheCan aims to disrupt this cycle by working with local ecosystem partners, such as Financial Service Providers, to design and implement new gender responsive lending products based on the needs of the people WFP work with.
Iraq’s journey to development may have its challenges, but it also has its opportunities. With financial inclusion at a mere 19 percent — 15 percent for women — the need for innovative solutions is pressing. SheCan Iraq is designed to meet this need by providing micro-credit tailored to the unique circumstances of smallholder farmers, micro-entrepreneurs and graduates of WFP’s vocational training programmes, strongly leveraging the high digital presence in the country to embed and reap the benefits of digital financial inclusion.
Through collaboration with Micro-Finance Institutions (MFIs), SheCan Iraq offers accessible and affordable loans, ensuring that those previously excluded from formal finance can now access formal finance to grow and diversify their business activities for the first time. By leveraging its convening power, WFP builds trust between financial service providers and first-time loan borrowers, paving the way for a more inclusive financial landscape.
Digital innovation and cultural nuance at the forefront
One of SheCan Iraq’s distinct features is its use of digital wallets to extend financial services to remote populations. This is particularly beneficial for rural communities and women, who often face significant barriers to traveling to access financial services due to security concerns. Digital wallets provide a safe, accessible means for these individuals to engage with the financial system, promoting greater economic empowerment.
SheCan Iraq also represents a progressive effort to incorporate Islamic finance principles, which are culturally and religiously aligned with the values and beliefs of the region’s population. This approach not only broadens participation but also ensures the financial inclusion strategies are culturally sensitive and therefore more readily accepted. Those hoping to receive support from SheCan receive sensitization on Islamic finance as well as gender sensitization at an individual and community level. This gender sensitization also involves boys and men to mitigate the risk of Gender Based Violence (GBV) and make them agents of change. All participants receive financial literacy, including loan management and digital literacy training. Moreover, all training materials will be gender responsive and all trainers will undergo gender awareness training.
Building the foundation for sustainable growth
SheCan Iraq’s impact extends beyond providing financial access. It encompasses a comprehensive capacity-building programme that includes financial literacy, digital literacy and entrepreneurship training. This equips people with the knowledge and skills needed to not only manage their finances but also to grow their businesses and achieve long-term economic resilience.
SheCan Iraq is more than just a financial inclusion programme; it is the foundation of a broader developmental strategy aimed at harmonizing financial activities and catalysing additional capital from various partners towards financial inclusion in Iraq. By addressing systemic barriers and fostering resilient businesses, SheCan Iraq is laying the groundwork for sustainable economic growth in a region that has long been in need of such transformative initiatives.
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