EBRD Launches SME and Startup Support Programmes

The European Bank for Reconstruction and Development (EBRD) has launched a new package of finance and advisory programmes for Iraqi small and medium-sized enterprises (SMEs), opening applications for startups and prompting calls from business leaders for regulatory reforms to help firms grow.

Announced at a launch event in Baghdad attended by government officials, banks, business associations and entrepreneurs, the initiative combines access to finance, advisory support and ecosystem engagement. The rollout includes the Bank’s flagship Star Venture, the international acceleration programme that provides selected high-potential startups with mentoring, technical expertise, and access to investor networks. Applications are now open to Iraqi applicants, with the current application round closing on 1 April.

The EBRD states that the programme is designed to help local companies improve international competitiveness and expand into new markets. Catarina Bjorlin Hansen, EBRD’s Head of Iraq, highlighted the opportunities for SMEs: “We see enormous potential in the country’s private sector, which is central to building sustainable growth and creating opportunities for the next generation. We are committed to working with our partners to strengthen the conditions for their growth and success.”

Participants in the discussions included the International Chamber of Commerce (ICC) Iraq and the Green Bank for Sustainable Development. ICC representatives called for stronger legislation, effective implementation of reforms, greater transparency and wider use of dispute-resolution mechanisms to improve investor confidence and support SME growth.

Meanwhile, representatives from the Green Bank highlighted lending gaps facing Iraqi SMEs, stressing the need for closer cooperation between local banks and international institutions and a flexible regulatory environment to promote competitiveness, innovation and job creation.

The programme forms part of the EBRD’s broader efforts since beginning operations in Iraq in 2025 to support private-sector development, expand access to finance and encourage entrepreneurship. Following the approval of Iraq’s economy of operation status last year, the Bank also recently launched its first investment in the country: a $100 million trade finance facility to the National Bank of Iraq (NBI) aimed at boosting import and export activity.

Source: EBRD