KRG's 'Gashanawa' Project Ignites Entrepreneurial Spirit, Empowers Small Businesses

ERBIL (Kurdistan24) – In a quiet but bustling factory in the Kurdistan Region, where the air is rich with the scent of sunflower, olive, and coconut, a young entrepreneur named Chia Ali is overseeing the production of 101 different types of natural oils, his business a thriving testament to a dream realized. Just a year after starting operations, Ali's factory, which now employs more than 25 people, received a crucial financial boost from "Gashanawa" (Shine), a landmark initiative by the Kurdistan Regional Government (KRG) designed to ignite the region's entrepreneurial spirit and transform the dreams of its youth into tangible, job-creating enterprises.

Ali's story, and those of the 24 other young business owners who benefited from the project's first phase, is a powerful illustration of the KRG's strategic shift towards fostering a vibrant private sector and building a diversified, resilient economy from the ground up.

The Gashanawa project, which was officially announced by KRG Prime Minister Masrour Barzani in September 2023, is a targeted and innovative program dedicated to providing small commercial loans to project owners and small to medium-sized businesses looking to expand.

The initiative, supervised by the Ministry of Labor and Social Affairs, is a cornerstone of the Ninth Cabinet's economic agenda, aimed at supporting young entrepreneurs, reducing unemployment, and creating a more dynamic and inclusive economy.

With the successful completion of its first phase, the project is now poised to begin its second, with plans to support an additional 100 projects, a move that is expected to create thousands of new job opportunities across the Kurdistan Region.

A Seed of an Idea, a Harvest of Opportunity

Chia Ali's oil factory is a perfect case study in the transformative power of the Gashanawa project. The idea for the factory was born in 2019, the culmination of a multi-year dream.

After a period of careful planning and preparation, the factory officially started its work in 2022. Just one year later, with a proven concept and a growing market for its diverse range of natural oils, the business was selected as a beneficiary of the Gashanawa project.

The financial support, Ali explained, was a game-changer. "It was a good financial support for us and led to the advancement of our project," he told Kurdistan24, expressing his happiness at being chosen.

The loan allowed him to scale up his operations, invest in new equipment, and expand his workforce, which now numbers over 25 employees. The factory's product line is impressive, boasting about "101 types of natural oil," including essential cooking oils like sunflower, olive, and sesame, as well as a wide variety of other specialty oils.

The Gashanawa loan did more than just provide capital; it validated his vision and fueled his ambition for the future.

"We have created job opportunities for several people and we intend to be supported more in the future, so that we can develop our factory further," Ali said.

His story is a powerful example of the project's ripple effect: a single loan not only helps one entrepreneur but creates a cascade of employment and economic activity that benefits the entire community.

For Chia Ali and the 24 other young people whose dreams were brought to fruition in the first phase, Gashanawa has been a gateway to self-reliance. It has enabled them to "stand on their own feet," becoming owners of their own projects and, in turn, creators of jobs and opportunities for others.

A Strategic Vision for a Diversified Economy

The Gashanawa project is a direct and practical application of a broader strategic vision laid out by Prime Minister Masrour Barzani and the Ninth Cabinet.

At the project's launch event in September 2023, the Prime Minister emphasized that a thriving private sector is "essential for a robust economy," and that this, in turn, hinges on a "strong and efficient banking system that facilitates economic and commercial development."

He noted at the time that small and medium-sized businesses account for over 50% of private sector activity and employment in the Kurdistan Region, yet they have historically faced significant challenges in accessing the financial support needed to grow.

Gashanawa was designed to directly address this gap. The project, overseen by the Ministry of Labor and Social Affairs, provides loans of up to 150 million Iraqi dinars to entrepreneurs, with an accessible and modern application process managed through a digital portal.

Nahro Jawhar, the deputy director of the Gashanawa project, confirmed the scale and impact of this financial support. "The projects that have been financially supported have received up to 150 million Iraqi dinars to develop their projects," he told Kurdistan24.

He also highlighted the project's indirect but equally important economic benefits. "The Gashanawa project, in addition to directly benefiting the project owners, also indirectly creates many job opportunities," he explained.

Looking ahead, he confirmed the ambitious plans for the project's expansion: "In the future, we plan to support 100 other projects and with that, thousands of job opportunities will be created."

A New Model of Trust-Based Lending

One of the most innovative and groundbreaking aspects of the Gashanawa project is its approach to loan approval.

As Prime Minister Barzani explained at the launch, it represents the first time the KRG has extended commercial loans through private banks, and, crucially, it introduces a new model of lending that prioritizes the viability of the business itself over traditional forms of security. 

The project, he stated, "introduces a groundbreaking approach of considering the strength of private businesses as the primary indicator for loan approval, eliminating the need for collateral."

This trust-based lending model is a radical departure from the often rigid and prohibitive requirements of traditional banking, which can stifle entrepreneurship and prevent promising small businesses from accessing the capital they need to grow.

By removing the barrier of collateral, the KRG is sending a powerful message of confidence in its entrepreneurs and fostering a more conducive and dynamic environment for private sector growth.

The Prime Minister's vision for Gashanawa is rooted in a deep belief in the principles of economic freedom and partnership.

In his speech at the launch, he emphasized that commitment to a country should be based on "mutual respect, equality, and justice," and that "a prosperous and harmonious nation can only be built on these principles." 

By empowering its citizens to build their own businesses and create their own prosperity, the KRG is putting these principles into practice, fostering a sense of ownership and shared investment in the nation's future.

As the Gashanawa project prepares to launch its second, even larger phase, the success of entrepreneurs like Chia Ali serves as a powerful and inspiring example of what is possible.

His factory, once a dream, is now a thriving reality, producing high-quality local products, employing dozens of people, and contributing to the economic fabric of the Kurdistan Region.

It is a story that the KRG hopes to replicate a hundred times over, as it continues to invest in its greatest asset: the talent, ambition, and entrepreneurial spirit of its people.

Kurdistan24's correspondent Hevrest Rejeb contributed to this report.