EdTech Platforms
EdTech Platforms
Business Model Description
Design and develop online learning platforms, learning management systems (LMS) and applications, providing a wide range of online learning material and B2B and B2C educational services for children, students, fresh graduates, early professionals, parents, and corporates. Offer free and subscription-based online courses and learning tracks, in Arabic and Kurdish niche, generating revenue through payments in cash (by selling subscription cards at retail distribution centers), digital payments and transfers from international financial service companies (for sales outside Iraq, mainly to the diaspora), overcoming the limited use of credit cards in Iraq. The e-learning platforms designed for children offer courses that aim at introducing technology to children at an early age to improve educational results through gamification in fields such as mathematics, to enable them to create animations and games, and to achieve breakthrough in learning frontier technologies, such as artificial intelligence (AI), robotics, and coding. E-learning platforms and applications could offer a forum for bringing students, parents, and teachers together, improving parenting and teaching methods as well as mental health. The curricula for new graduates could focus on skills needed in the jobs market that would improve employability, such as copyrighting and accounting.
Expected Impact
Leverage technology-based distance learning for creating skills and employment, building human capacity, improving educational outcomes alongside socioemotional and digital skills.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
Disclaimer
UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.
The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.
Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.
Country & Regions
- Iraq: Countrywide
Sector Classification
Education
Development need
Achieving quality education in Iraq is undermined by limited government education spending, which represents less than 10% of the public budget that is below the MENA average of 14% and the international benchmark of 15-20% for achieving SDG 4, quality of education staff, outdated curriculum, weak school infrastructure, skills mismatch, and limited time spent at school (3,4).
Policy priority
Building human capacity is the first of the five sustainable development priorities set out by Iraq’s Vision 2030. The government envisions the domestication of the SDGs through the Ministerial Curriculum (2022-2025) which stipulates the adoption of a plan based on 23 axes, including the improvement of human capital endowment and efficiency in education as the 14th axis (1, 2).
Gender inequalities and marginalization issues
Female labor force participation in Iraq is the second lowest in the world, at 10.6% as of 2021 (cf. 68% for males) as an outcome of numerous factors that hinder entry, including educational inclusion, prevalence of child marriages, and societal norms. In Iraq, mostly girls make up the 3.2 million children that are out of school (6, 8). Marginalized communities, including the estimated 200,000 displaced households and people living in more than 470 informal settlements in Iraq, have significant challenges in accessing physical education facilities or bear the brunt of overcrowding, inadequate school facilities, and long distances to school, which disproportionately impact the girls’ transportation to the educational facilities. Lack of civil documentation and the need to work to provide extra income for their families impede displaced children’s inclusion in the education system (7).
Investment opportunities introduction
Iraq is a conflict-affected upper-middle income country, endowed with one of the most youthful populations globally as 40% of the Iraqi population is under 15, with opportunities to invest in school buildings, technology-based distance learning, early childhood development, private schools, and higher education facilities such as laboratories (2, 5).
Key bottlenecks introduction
Sourcing skills amidst high employee turnover and access to finance need to be addressed given the banks’ limited loan portfolio and public mistrust in the banking system, owing to bank failures during domestic insurgency and external shocks, and currency auction practices among others (12).
Education Technology
Development need
Human capital development is imperative for sustainable development in Iraq where the population increases by about a million annually, although a child born in Iraq is estimated to only achieve 40% of his or her potential, the second lowest level for such metric in the MENA region. Youth lack formal work opportunities and compete over limited public sector jobs (8, 23, 29).
Policy priority
The Iraq National Development Plan covering the years 2018-2022 sets the objective of adopting education technologies to modernize curricula within a dedicated chapter for Human and Social Development strategies. The Ministry of Education, in partnership with UNICEF, launched the online learning platform ''Newton'' in March 2020 as a response to the Covid-19 outbreak (4, 10).
Gender inequalities and marginalization issues
Internally Displaced Persons (IDPs) and people residing in informal settlements in Iraq have limited access to e-learning opportunities due to lack of means to access online material, including devices and internet connection. In rural areas, female students’ educational attainment is risked by lack of female role models at education facilities, due to cultural barriers that female teachers face working in mixed classrooms. In 2022, from about 1.2 million internally displace persons (IDPs) in Iraq, an estimated 103,000 have been secondarily displaced, due to IDP camp closures among other reasons. Lacking access to electricity, reliable internet connection, and electronic devices, pandemic is the main cause for dropping out of school for 65% of secondarily displace children (7).
Investment opportunities introduction
With the first e-learning platform established in 2011, Iraq’s nascent startup ecosystem has already proven capacity to develop e-learning platforms and learning management systems (LMS), and is expected to grow given the internet penetration rate of 74.9% in 2023 with a yearly increase of 7.3 million new internet users (11, 13).
Key bottlenecks introduction
The limited availability of data, such as from the Ministry of Education (MoE) and the Ministry of Labor and Social Affairs (MoLSA), and deficient digital infrastructure hinder the growth of digital technologies. Systemic issues such as having a stable electricity supply and access to internet connection limit the customer base and user experience (9,11).
Pipeline Opportunity
EdTech Platforms
Design and develop online learning platforms, learning management systems (LMS) and applications, providing a wide range of online learning material and B2B and B2C educational services for children, students, fresh graduates, early professionals, parents, and corporates. Offer free and subscription-based online courses and learning tracks, in Arabic and Kurdish niche, generating revenue through payments in cash (by selling subscription cards at retail distribution centers), digital payments and transfers from international financial service companies (for sales outside Iraq, mainly to the diaspora), overcoming the limited use of credit cards in Iraq. The e-learning platforms designed for children offer courses that aim at introducing technology to children at an early age to improve educational results through gamification in fields such as mathematics, to enable them to create animations and games, and to achieve breakthrough in learning frontier technologies, such as artificial intelligence (AI), robotics, and coding. E-learning platforms and applications could offer a forum for bringing students, parents, and teachers together, improving parenting and teaching methods as well as mental health. The curricula for new graduates could focus on skills needed in the jobs market that would improve employability, such as copyrighting and accounting.
Business Case
Market Size and Environment
< USD 50 million
Iraq's nascent education technologies ecosystem has produced four e-learning companies and two learning management systems (LMS) since the establishment of the first EdTech platform in 2011. The market offers niche online learning material in Arabic and Kurdish that could target diaspora as well as the MENA region where the EdTech has grown with a CAGR of 54% between 2018 and 2021 (11, 17).
Adoption of digital services in education sector is expected to increase in Iraq given the internet penetration rate of 74.9% in 2023 with a yearly increase of 7.3 million new internet users (13).
Iraqi population is increasingly urbanized and youthful, as almost 50% of the population is under 19. The population, which is around 43.3 million as of 2023, is projected to exceed 51 million by 2030, and reach 74.5 million by 2050 (1, 14).
Against the backdrop of the Covid-19 pandemic, in 2020, the Ministry of Education (MoE) released the Newton e-learning platform to provide live classes and online content based on official curriculum. The Ministry of Education of the Kurdistan Region of Iraq (KRI), with support from UNESCO, created the “Ewane” online educational platform that enabled more than 500,000 students at different educational levels (basic, preparatory, and vocational) to continue their education (30).
Indicative Return
> 25%
Iraq has a nascent EdTech ecosystem with some companies receiving five-digit funding as well as grants. An Iraqi EdTech company established business in Baghdad and expanded franchise to six governorates, with an expected profit margin of 30% over a period of seven years (11, 15, 32).
Investment Timeframe
Medium Term (5–10 years)
EdTech investments are expected to generate positive return in the medium term given the systemic issues in Iraq, such as access to stable electricity supply and internet connection. Once these issues are mitigated, companies may expect shorter return periods owing to a strong market growth (9, 12).
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Market - Volatile
Market - Highly Regulated
Impact Case
Sustainable Development Need
The projected cost of delivering SDG 4 - Quality Education in Iraq for the period of 2022-2030 would be about USD 120 billion from a developing country base scenario, albeit the limited public spending on education, representing less than 10% of the government budget -below the MENA average (3, 9).
Learning outcomes and skill levels in Iraq remain low amid high dropout rates (highest at the end of upper secondary education with 12%, in 2020) and repetition rates (over-aged children make up about one-third of the secondary school children), aggravated by declining teacher quality (3, 4, 6).
Almost one-third of the Iraqi labor force are impacted by labor underutilization as of 2021, due to both high unemployment (16.5%) and underemployment (24%) (8).
Gender & Marginalisation
Enrolment is a key issue for an inclusive education sector in Iraq where the rate of females who are out of school (11.4%) is double that of males (5.4%), leaving out-of-school children vulnerable to child labor and child marriage (4).
Labor underutilization in Iraq is higher among women than men, and youth than adults. In 2021, the female unemployment rate was 28% compared to 15% for males, and youth unemployment was 36% with almost three times the figure for adults (8).
Expected Development Outcome
Private investments in distance learning could improve financing for education and educational outcomes for youth, complementing formal education.
Improvement in educational outcomes, including skills development in socioemotional and digital skills that are often overlooked by the public curriculum, could benefit Iraqi students from all age groups.
Use of educational technologies may support the larger-scale digital transformation in Iraq, therefore improving data-driven decision making, customer-centric services, cybersecurity and utilization of digital payment systems.
Gender & Marginalisation
Distance learning could help the out of school females and vulnerable groups in Iraq, including displaced and rural populations, improve skills and close the digital divide albeit the issues with accessing physical education such as lack of infrastructure, civil documentation, or cultural norms.
Educational technologies decrease skills-related unemployment for women and youth, while increasing learning opportunities for marginalized groups, who bear the brunt of accessing physical education due to hardship in transportation or social norms that make them stay at home.
Primary SDGs addressed
4.3.1 Participation rate of youth and adults in formal and non-formal education and training in the previous 12 months, by sex
4.4.1 Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill
No recent sex-aggregated data available, 28% in 2019 (19).
N/A
N/A
The National Development Plan (NDP) for 2018-2022 targets improving education system efficiency and upskilling teachers and youth without target levels (10).
8.5.2 Unemployment rate, by sex, age and persons with disabilities
15.7% in 2023 (20).
The National Development Plan (NDP) for 2018-2022 sets out the objective -for private sector- of reducing unemployment by 0.5% every year throughout the five-year NDP period (10).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Corporates
Public sector
Outcome Risks
If not standardized and supported by public framework, e-learning applications may risk attaining lower content quality and educational returns.
If cybersecurity features are not accounted for, educational technologies may exacerbate the exposure to cyber risks for the government, businesses, and individuals.
Impact Risks
Internally Displaced Persons (IDP), including the secondarily displaced population living in the informal settlements may not register to and afford subscription-based online learning materials.
Convincing their families to pay subscription-based courses could be harder for female students (11).
Impact Classification
What
Investments in human capital through educational technologies increase national wealth, help Iraqi students achieve their lifetime potential, and improve teaching quality and parenting methods.
Risk
Disadvantaged groups, including rural communities and internally displaced persons (IDP), may not access online learning materials due connection and affordability concerns.
Contribution
Educational technologies help Iraq develop capacity for modern distance education, complementing formal education and physical skills development centers.
Impact Thesis
Leverage technology-based distance learning for creating skills and employment, building human capacity, improving educational outcomes alongside socioemotional and digital skills.
Enabling Environment
Policy Environment
The Iraqi National Education Strategy, 2021-2031: lays the foundation for increasing financial commitments to achieve universal primary and secondary education, pledging to increase the share of public spending on education from below 10% to 16% before 2030 (21).
The National Development Plan, 2024-2028: is set to include a priority program that is designed to complete the public sector projects with a social dimension related to human capital development (31).
Republic of Iraq National Development Plan, 2018-2022: Sets out the government’s five-year objectives for achieving efficiency in the education system and adaptation of educational technologies for Human and Social Development pillar (10).
Digital Transformation Strategy of the Kurdistan Regional Government (KRG), 2022: sets out the principles, goals and strategies for the vision 2025 of enhancing GovTech in the region, including through human capital development and investing in early digital education (22).
Financial Environment
Financial incentives: The Central Bank of Iraq (CBI) launched the 1 trillion dinar initiative in 2015 to support SMEs with concessional financing. Bloom project, implemented by Cihan Bank, provides collateral-free loans of up to about USD 110K for SMEs in the Kurdistan Region of Iraq (KRI) (25, 28).
Fiscal incentives: Investment projects are exempt from non-custom taxes for 10 years and are subject to exemption of import duties for raw materials, equipment and devices, though implications and provision of incentives by the two different investment laws in the country may differ (26, 27).
Other incentives: Iraq Development Fund is established as a fund of funds (FOF) to manage USD 2.4 billion to be spent on sustainable development in six priority sectors including education and digital transformation (23, 24).
Regulatory Environment
The Revised Investment Law No. 13 of 2006 in Iraq: sets out fiscal incentives for the Iraqi and foreign investors, including tax exemption for imported assets for educational projects, and establishes the National Investment Commission (NIC) for promoting and facilitating investments (26).
Investment Law of the Kurdistan Region of Iraq (KRI), Law No.4 of 2006: grants equal rights to foreign and local investors and offers tax incentives for investments, including special clauses concerning education projects under the article 6 (27).
Marketplace Participants
Private Sector
Eduba, Medresty, IoT Kids, Najeh Platform, Noon Academy, Lamsa World, Coded Minds, PraxiLabs, Abwaab, Wedo Academy, Kaiba Code, ta3leem, Feracademy, Qaf Lab, 51 Labs, KAPITA, Orange Corners.
Government
Ministry of Education (MoE), Ministry of Higher Education and Scientific Research, Ministry of Labor and Social Affairs (MoLSA), Kurdistan Regional Government (KRG), the National Investment Commission (NIC), Newton Live Online Learning Platform.
Multilaterals
United Nations Development Programme (UNDP), United Nations Children's Fund (UNICEF), European Union, Korea International Cooperation Agency (KOICA), Nuffic - Orange Knowledge Program, the Swedish Development and Aid Organization (SWEDO).
Non-Profit
Adyan Foundation, Oxfam, the Rashad Center for Cultural Governance, REACH Iraq, Rwanga Foundation, Save the Children, Re:Coded, the Station.
Target Locations
Iraq: Countrywide
References
- (1) Ministry of Planning, Republic of Iraq. 2019. The Future We Want: Iraq Vision for Sustainable Development 2030. https://planipolis.iiep.unesco.org/sites/default/files/ressources/iraq_vision_2030_en.pdf
- (2) Prime Minister's Office, Republic of Iraq. 2022. Ministerial Curriculum of the Government of Mohammed Shia Al-Sudani (2022-2025).
- (3) Lahire, Nathalie; Sedmik, Elisabeth; El Ghali, Hana Addam. 2021. Building Forward Better to Ensure Learning for All Children in Iraq : An Education Reform Path (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/430241627636852041/Building-Forward-Better-to-Ensure-Learning-for-All-Children-in-Iraq-An-Education-Reform-Path
- (4) Munir, Essam; Selim, Safwa; Ramadani, Hanguin and Mohammed Jamal. 2021. Iraqi Education Sector Overview. Kapita Business Hub. https://kapita.iq/storage/app/media/Research/Iraq%20Education%20Sector%20Overview%20EN.pdf
- (5) Denselow, James. 2023. Iraq’s Young Population – A Challenge or an Opportunity? Arab News, Research and Studies. https://www.arabnews.com/sites/default/files/rsu_iraq_young_population_2.pdf
- (6) UNICEF. Iraq Education Fact Sheets, 2020: Analyses for learning and equity using Multiple Indicator Cluster Surveys (MICS) data. https://data.unicef.org/wp-content/uploads/2019/07/2020-IRAQ-Education-Factsheets_UNICEF_final.pdf
- (7) Norwegian Refugee Council (NRC). 2022. Twice displaced: The unmet needs of Iraq’s children in informal settlements. https://www.nrc.no/globalassets/pdf/reports/iraq-informal-settlements-children/twice-displaced---english.pdf
- (8) Central Statistical Organization (CSO), Kurdistan Region Statistics Office (KRSO) and International Labour Organization (ILO). 2022. Iraqi Labour Force Survey 2021. https://www.ilo.org/wcmsp5/groups/public/---arabstates/---ro-beirut/documents/publication/wcms_850359.pdf
- (9) Ministry of Planning, Republic of Iraq and UNDP. 2022. Financial Gap Analysis of Agenda 2030 and SDGs in Iraq. Baghdad.
- (10) Ministry of Planning, Republic of Iraq. 2018. National Development Plan 2018-2022. https://andp.unescwa.org/index.php/sites/default/files/2021-05/National%20Development%20Plan%202018-2022.pdf
- (11) Business Landscape Magazine, Issue 10. 2023. The Core Elements, Unique Challenges, and Opportunities for Digital Transformation in Iraq.
- (12) UNDP SDG Financing in Iraq project team consultations with Iraqi firms and other private sector stakeholders in September 2023.
- (13) Datareportal. 2023. Digital 2023: Iraq. https://datareportal.com/reports/digital-2023-iraq
- (14) Al Jazeera. 2023. Iraq approves record $153bn budget aimed at creating jobs. https://www.aljazeera.com/news/2023/6/12/iraq-approves-record-153bn-budget-aimed-at-creating-jobs
- (15) Iraqi Angel Investors Network. 2022. News: IoT Kids Secures 5 Figure Investment from Earthlink Telecommunications. https://kapita.iq/content/issue/iot-kids-secures-equity-investment-earthlink-telecommunications-iraqs-largest-isp-through-iraqi-angel-investors-network
- (16) KaibaCode. 2023. Plans and Pricing. https://kaibacode.com/en/pricing
- (17) Rasmal. 2022. The Evolution of the EdTech Market In the MENA. https://www.rasmal.com/the-evolution-of-the-edtech-market-in-the-mena/
- (18) World Bank Group. 2020. Iraq Economic Monitor: Navigating the Perfect Storm (Redux). https://documents1.worldbank.org/curated/en/446201588465646751/pdf/Iraq-Economic-Monitor-Navigating-the-Perfect-Storm-Redux.pdf
- (19) Ministry of Planning, Republic of Iraq. 2021. The Second National Voluntary Review Report on the Achievement of the Sustainable Development Goals. https://sustainabledevelopment.un.org/content/documents/285062021_VNR_Report_Iraq_English.pdf
- (20) Sachs, J.D., Lafortune, G., Fuller, G., Drumm, E. 2023. Implementing the SDG Stimulus. Sustainable Development Report 2023. Paris: SDSN, Dublin: Dublin University Press.
- (21) Saavedra, Jaime and Sedmik, Elisabeth. 2023. Iraq: New schools and improved learning bring hope to the poorest children, but more is needed. https://blogs.worldbank.org/arabvoices/iraq-new-schools-and-improved-learning-bring-hope-poorest-children-more-needed#:~:text=The%20Iraqi%20education%20strategy%20sets,currently%2045%25%2C%20as%20well%20as
- (22) Kurdistan Regional Government. 2022. Digital Transformation Strategy. https://govkrd.b-cdn.net/DXS/DIT%20Strategy%20Booklet%20(signature).pdf
- (23) UNDP SDG Financing in Iraq project team consultations with Iraqi public sector stakeholders in July 2023.
- (24) BasNews. 2023. Iraqi Parliament Allocates IQD1 Trillion to Boost Private Sector, Investment. https://www.basnews.com/en/babat/807181
- (25) Kapita Research Department. 2021. The One Trillion Dinar Initiative. Business Landscape Magazine, Issue 3. https://kapita.iq/storage/app/media/New%20Research%20Publications/BLM%203/Business%20Landscape%20magazine%203rd%20edition.pdf
- (26) Republic of Iraq, Presidency of Ministers’ Council. 2015. The Investment Law No (13) of 2006 as amended with Law No.2 of 2010 and the Law No. 50 of 2015. https://faolex.fao.org/docs/pdf/irq201855E.pdf
- (27) Kurdistan Regional Government (KRG) Board of Investment. 2006. Investment Law. https://govkrd.b-cdn.net/OtherEntities/Board%20of%20Investment/English/Publication/Investment%20Law/Law%20No.%204%20of%202006%20-%20Investment%20Law%20in%20Kurdistan%20Region-Iraq.pdf
- (28) Bloom. 2023. About Bloom. https://bloom.digital.gov.krd/en
- (29) World Bank Group. 2022. Iraq Country Climate and Development Report (CCDR). https://documents1.worldbank.org/curated/en/099005012092241290/pdf/P1776390cfceae0d908ff8073b7e041bea6.pdf
- (30) The United Nations Educational, Scientific and Cultural Organization (UNESCO). 2020. UNESCO, the Ministry of Education of the Kurdistan Region and the European Union continue to reach out to students at home for learning never stops. https://www.unesco.org/en/articles/unesco-ministry-education-kurdistan-region-and-european-union-continue-reach-out-students-home
- (31) UNDP SDG Financing in Iraq project team consultations with Iraqi public sector stakeholders in November 2023.
- (32) Mena Innovation. 2019. IoT Kids Presentation. https://mena-innovation.com/2019/wp-content/uploads/2019/09/IOT-KIDS-MENA-Innovation.pdf