World Bank Approves $600M for Microenterprise Revival in Türkiye’s Earthquake-Hit Regions

The project will finance the creation of seven new small industrial estates (SIEs), which will accommodate approximately 1,600 micro enterprises engaged in crafting, goods production, and services.

The World Bank Board has approved a significant $600 million in financing to support the recovery of micro enterprises devastated by the catastrophic earthquakes that struck Türkiye in February 2023. This funding is designated for the Türkiye Small Industrial Estates Reconstruction and Regional Economic Recovery Project.

The initiative aims to revitalize economic activity across four of the 11 provinces most severely affected by the earthquakes. The project will finance the creation of seven new small industrial estates (SIEs), which will accommodate approximately 1,600 micro enterprises engaged in crafting, goods production, and services.

These new SIEs will be constructed with resilience in mind, designed to withstand future earthquakes, natural disasters, and the impacts of climate change. They will incorporate energy and water efficiency measures, including solar energy generation for powering the businesses within. The project is expected to reduce carbon emissions by around 147,030 metric tons annually.

Humberto Lopez, World Bank Country Director for Türkiye, stated: "The World Bank is dedicated to aiding Türkiye in rebuilding the earthquake-affected communities. We recognize that the recovery from such extensive devastation will take several years and require significant resources. This project is a continuation of our efforts to restore livelihoods and foster economic recovery in the affected areas."

The earthquake-affected provinces are home to about 15% of Türkiye's micro, small, and medium enterprises (MSMEs), many of which operate from industrial estates that offer essential facilities and services. These include affordable operational spaces, shared resources, infrastructure, utilities, and access to credit.

Stefka Slavova, Lead Economist and Project Team Leader, highlighted the project's importance: "This project addresses the urgent need to restore the economic activities of MSMEs that have faced substantial losses. It will also provide financial support for rebuilding their premises in a climate- and earthquake-resilient manner."

This new project builds on the Post-Earthquake MSME Recovery Project, which provided critical financing for the immediate operational expenses of MSMEs in the earthquake-affected regions.