World Bank Approves $600 Million to Revive Micro Enterprises in Türkiye’s Earthquake-Hit Areas
The World Bank Board has approved $600 million in financing to support the revival of micro-enterprises that were destroyed or severely damaged by the devastating earthquakes in Türkiye in February 2023.
The Türkiye Small Industrial Estates Reconstruction and Regional Economic Recovery Project aims to revitalize economic activity in four of the eleven provinces significantly impacted by the earthquakes. The project will fund the establishment of seven small industrial estates (SIEs), which will accommodate 1,600 micro-enterprises engaged in crafting goods, providing services, and other industries.
These new SIEs will be designed to withstand future earthquakes and other natural disasters, and will incorporate energy and water efficiency measures. Additionally, they will generate solar energy to power the micro-businesses they host, with an estimated reduction of 147,030 metric tons of carbon emissions per year.
“The World Bank is committed to supporting Türkiye in its efforts to rebuild the earthquake-affected communities. We know well that the ongoing efforts from the enormous devastation will span several years and will require considerable resources. This project is a continuation of our work to restore livelihoods and economic recovery of the affected areas,” said Humberto Lopez, World Bank Country Director for Türkiye.
Approximately 15% of Türkiye’s micro, small, and medium enterprises (MSMEs) are located in the earthquake-affected provinces, with many based in industrial estates that offer various facilities and services, such as affordable operational spaces, shared resources, infrastructure like roads and transportation, utilities, and access to credit.
“The Project addresses the overwhelming need to restore economic activities of MSMEs that suffered tremendous losses in terms of human and physical capital. It will also provide financial support for MSMEs to build their premises in a climate- and earthquake-resilient manner,” said Stefka Slavova, Lead Economist and one of the Project Team Leaders.
The Project is a continuation of the Post-Earthquake MSME Recovery Project, which provided financing to cover urgent operating expenses for MSMEs in the earthquake-affected areas.
