In early February, the first craftsmen who contracted loans with Fraternity in Iraq to buy their machines and resume their activity started to pay them back. This is very good news for the area’s micro-economy since this money will finance new entrepreneurs! Here’s how.

Saad, Rodi, Adnan and Wissam (above, with his son) started paying back their loan right in time, in early February. Adnan paid the first part of his debt on February 9^th, and the other three soon followed. Thus, exactly 9 months after the launching of the Niniveh Plains economic revival program for the first beneficiary craftsmen, the results are very satisfactory for Fraternity in Iraq and its generous donors.

Aude, head of the program in Iraq, is delighted: « Adnan decided to pay us back in 1 year instead of the 5 he has. It’s very encouraging for the future. It seems Fraternity in Iraq has found the right model! « 

Reconstruction is difficult

In the current context of the rebuilding of these areas, once invaded by ISIS and released just over a year and a half ago, those are welcome signs of hope. While the revival of the towns of the Nineveh Plains such as Qaraqosh, Bartella and Bashiqa – three cities where this vast project of economic recovery is located – is not really shy, it still needs to be consolidated. Half of the inhabitants of Qaraqosh resettled there, but in Bartella only one third of the population returned.

Exemplary entrepreneurs

The artisans who paid the first amounts due are all the more deserving! They are for the most part courageous fathers. Rodi, whose project of reopening his PVC joinery we presented to you in the end of May 2017, currently employs two people. Adnan, whose beginnings were more difficult, finally found his cruising pace, even though the local economy is not yet as flourishing as it was before ISIS. As for Wissam, he barely hides his satisfaction: « I have already sold six kitchens! « .

Above, one of the kitchens whose furniture has been built by Wissam. On the right, Rodi in his workshop.

Innovation

The model imagined by Fraternity in Iraq is unprecedented. The help brought to entrepreneurs is comprised at 80% of a zero-rate loan and at the remaining 20% of a donation. On average, Fraternity in Iraq allocates to each project a global funding of $ 11,000. A very significant amount considering the fact that in Iraq no institution lends over $ 10,000 – let alone at zero! Which just goes to show the importance of such a program for the economic recovery of a city! The donation part of the amount allocated to each project increases with the speed of repayment. The better deadlines are met, the lower the amount for the debtor to pay back.

148 jobs created

So, the association bet on trust so that these men – and women since, out of the 148 jobs created to this day since the beginning of the program, 4 are held by women – regain their dignity. And it works! The virtuous circle is underway: the funds recovered by Fraternity in Iraq will soon be reinvested to help other craftsmen! Two new projects have already emerged since the beginning of February, and the program is spreading to the surrounding towns.

While the loan part of the program is aimed at being self-sustainable, we still need help to finance the donation part! Help Fraternity in Iraq finance the revival of other entrepreneurial activities, make a donation!