Market Assessment Report Assessing Critical Markets in 5 districts in 3 conflict affected governorates in Iraq Hawija, Kirkuk; Edheim, Diyala; Falluja, Ramadi and Ana in Anbar May- June 2019 1 Table of Contents I. Introduction ......................................................................................................................................... 3 II. Assessment Methodology ................................................................................................................... 3 III. Key Findings ....................................................................................................................................... 7 Firstly, Kirkuk Governorate; Hawija District ........................................................................................ 7 1. Market and labor for Construction Value Chain in Hawija ......................................................... 7 2. Fruits and vegetables Value Chain in Hawija .............................................................................. 9 3. Groceries ................................................................................................................................... 12 Secondly, Diyala: Edheim Market Mapping ...................................................................................... 16 1. Groceries value chain in Edheim, Diyala: .................................................................................. 16 2. Fruits and vegetables Value Chain in Edheim: .......................................................................... 17 3. Wheat to Bread value chain: ..................................................................................................... 19 4. Sheep and Goats market mapping in Edheim ........................................................................... 20 5. Construction value chain in Edheim ......................................................................................... 22 Thirdly, Falluja Market Mapping, Anbar governorate: ..................................................................... 25 1. Food and grocery ...................................................................................................................... 25 2. Clothes and accessories in Falluja ............................................................................................. 26 3. Construction Value Chain in Falluja: ......................................................................................... 28 4. Communication in Falluja ......................................................................................................... 30 5. Money Transfer (Hawala) in Falluja .......................................................................................... 31 Fourthly, Ramadi Market Mapping, Anbar Governorate .................................................................. 33 1. Fruits and vegetables value chain ............................................................................................. 33 2. Food and Groceries in Ramadi .................................................................................................. 34 3. Construction value chain in Ramadi.......................................................................................... 36 4. Clothes and accessories ............................................................................................................ 38 5. Communication: ........................................................................................................................ 39 6. Money Transfer ......................................................................................................................... 41 Fifthly, Ana Market Mapping, Anbar Governorate: .......................................................................... 43 1. Food and grocery, Ana .............................................................................................................. 43 2. Clothes and accessories Ana ..................................................................................................... 44 3. Construction Ana....................................................................................................................... 45 4. Communication Ana .................................................................................................................. 46 5. Money transfer (Hawala) Ana ................................................................................................... 48 IV. Recommendations: .......................................................................................................................... 51 2 I. Introduction Supported by the Iraq Humanitarian Fund (IHF), ZOA and the Consortium partners, Relief International, Wand Al Khair Human Organization and Al Rafedain Peace Organization have carried out the market assessment to identify level of functioning and accessibility of the markets as well as opportunities and constraints that the market shows for returnees and non-displaced in five conflict affected areas. The study targeted several critical markets in Construction, Food, communication and money transfer. Geographical scope of the study covered Hawija (Kirkuk), Edheim (Diyala); and Fallujah, Ramadi and Ana in Anbar. The study took place in May-June 2019, and results have supported consortium partners to identify potential market demand and opportunities to support micro businesses and income generating activities in target communities along identified value chains, especially for beneficiaries who are not sure about their business idea, or are entering the market, and to do reality check on available demand for beneficiaries who are resuming their livelihoods and economic activities upon return.. II. Assessment Methodology 1. Objectives: The study aims to identify major gaps in the market systems that can be supported through Small businesses and Income Generating Activities through: • Market mapping for value chains needed for the revival and establishment of small businesses and IGA’s. • To identify market infrastructure that needs rehabilitation. • To identify hiring sectors within the job market. • To identify existing sources of financing for small businesses. • Identifying accessibility of markets by consumers in target communities. 2. Methodology ZOA, RI, WAHO and Al Rafedain Peace Organization, will hire and train a team of research assistants to collect data from respondents in Falluja, Ramadi, Ana in Anbar; Hawija in Kirkuk, and Al Khalis, starting from Edheim district of Ninawa governorate as follows: 1. Session with project team and volunteer committee members, to identify the critical market that will be analyzed as part of the study in every location. 2. Key Informant Interviews (KIIs) with governmental authorities concerned with the studied value chains, to map governmental policies and other factors of the community’s general context that affect this value chain. 3. KIIs with whole sale shops and traders dealing in relevant products or services that are being studied 4. KIIs with small holders and shops that deal in these products or services 5. Focus group discussion with a sample of consumers for the products that we’re studying 6. Data analysis through developing seasonal maps for these goods and services, identifying impact of government policies on availability, access and prices. 7. Prepare a set of recommendations for appropriate interventions 8. Reporting and publishing the study 3 3. Geographical scope The assessment is covering urban market in the following locations: • Falluja city, Anbar • Ramadi City, Anbar • Ana City, Anbar • Hawija city, Kirkuk • Edheim subdistrict, Al Khalis district, Diyala 4. Sources of information and how to collect them: # Source of info How to collect them 1 Government officials (policy makers Key informant meeting with relevant information) government stakeholders 2 Users or consumers of this product or good Focus group discussion 3 Whole sales traders Key informant meetings 4 Small traders and merchants Key informant meetings 5 Observation Direct information gathering in terms of value chain supplies. 5. Value chains to be covered in this assessment Partners agreed on the following wider pool of value chains to be considered aspart of this assessment: # Group Value chains to be assessed 1 Food production • Manufacturing food items and trading • Grocery trade • Bread 2 Construction value • Construction and finishing materials chain • Skilled labour and contractors 3 Communication • Mobile service providers, mobile maintenance and Mobile cards trading • Internet service providers 4 Cash • Hewala companies, cash transfer services • Mobile cash service providers 6. Workload of KIIs, FGDs and observation per area (Falluja, Ramadi, Ana, Hawija and Edheim)1 Value chain KIIs Gov KII wholesales KII small FGD Observation trader trader consumers Food production 1 1 1 2 1 and trading 1 KIIs with Gov and FGDs with consumers can be merged 4 Construction value 1 1 1 2 1 chain Communication 1 1 1 2 1 Cash 1 1 1 2 1 7. Study information gathering guidelines from different sources of information Partners agreed on the following guidelines from EMMA, to be used in the market assessment, with minimal modification to map market demand and beneficiaries access to market, to be able to identify opportunities for additional small and micro businesses to be supported through the project: Disaster-affected population • the household economy pre- and post-disaster?? • income and expenditure