World Bank approves $500M to revive local businesses in Türkiye’s quake-affected zones

The World Bank approved $500 million in financing to support inclusive job creation and economic revitalization in regions of Türkiye affected by the February 2023 earthquakes.

According to a statement from the bank, the funding will be used to create employment opportunities and support businesses in the areas affected by the disaster.

The initiative aims to support small and medium-sized enterprises (SMEs) in the earthquake zone and generate approximately 17,000 new or improved jobs, with more than one-third intended for women and youth.

The statement noted that limited access to finance among companies is a major barrier to job creation.

To address this challenge, the project has been designed to provide long-term financing specifically to SMEs operating in the affected provinces.

‘Significant step toward rebuilding local economies’

This initiative is part of a broader World Bank support package aimed at assisting Türkiye’s earthquake-affected regions, complementing wider efforts to strengthen the labor market and promote economic recovery.

The bank emphasized that the project is expected to improve conditions for formal job creation, enhance productivity, and increase labor demand.

Commenting on the project, Humberto Lopez, the World Bank Country Director for Türkiye, stated that the bank had supported Türkiye from the day the earthquakes struck, sharing its international expertise in disaster risk management and reconstruction.

“This project represents a significant step toward rebuilding local economies and providing much-needed employment opportunities in the formal sector,” Lopez added.