The World Bank Board has approved $600 million in financing to support the revival of micro enterprises destroyed or severely damaged by the earthquakes that struck 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 heavily impacted by the earthquakes. The project will fund the establishment of seven small industrial estates (SIEs) housing 1,600 micro enterprises engaged in producing crafts, goods, or providing services.
These new SIEs will be designed for resilience against future earthquakes, other natural disasters, and climate change impacts. They will incorporate energy and water efficiency measures and generate solar energy to power the hosted micro businesses, with an estimated reduction of 147,030 metric tons per year in carbon emissions.
“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, many based in industrial estates that offer facilities 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 Project Team Leaders.
This initiative follows the Post-Earthquake MSME Recovery Project which provided financing for urgent operating expenses of MSMEs in earthquake-affected areas.