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- The EBRD, Sok and Akbank join forces for earthquake-hit suppliers
- More than 100 suppliers will benefit from the project
- Project comes with EU support for technical cooperation on human capital
The European Bank for Reconstruction and Development (EBRD) is participating in the Supply Chain Finance (SCF) programme of Türkiye’s Akbank in favour of Sok..
With the EBRD's involvement, the amount of the programme will be augmented, making it possible for more than 100 suppliers, mostly based in the earthquake-affected cities and mostly small and medium businesses, to benefit from the SCF programme for the first time.
The EBRD’s unfunded risk participation in Sok’s supply chain finance programme – administered by Akbank – will support eligible suppliers based in the country, providing them with access to affordable working capital solutions. By facilitating the expansion of the SCF program, the EBRD’s support will strengthen Sok’s supply chain and its operations in the region.
In addition to providing financing to suppliers, the project is also designed to support the suppliers’ recovery and expand access to livelihoods and employment opportunities, by assisting suppliers in developing inclusive business policies and practices that promote economic recovery through employment opportunities and sustainable livelihoods, it seeks to further aid the region's economic recovery in the medium term.
The region, struck by the 2023 earthquakes that claimed over 55 thousand lives and caused widespread damage, hosts nearly 14 million people.
Even prior to the earthquake, the region was struggling with economic challenges, including those in the human capital area; the exasperating circumstances of the earthquake deepened the crisis further, with the region losing close to 40 per cent of its workforce to emigration.
Amid financial challenges and supply chain disruptions, production and export have not recovered fully in the region, mainly due to the lack of adequate workforce, driven by insufficient housing facilities and essential services. This makes human capital growth a key aspect of recovery in the region.
The EBRD’s Turkiye Deputy Head, Erdem Yasar, said: "The EBRD remains firmly committed to supporting the recovery and reconstruction of the earthquake-affected region, recognizing that strengthening supply chains is integral to sustained economic progress. We commend Sok and Akbank for developing this impactful program, which will provide much-needed support to local suppliers. We hope this initiative will inspire others to create innovating financing solutions that foster vibrant economic growth and attract the region's workforce back to a revitalized economy."
In addition, as part of the project, a technical cooperation funded by the European Union’s IPA II Fund will assist suppliers in identifying challenges in human capital and define corresponding objectives solutions to overcome them. Incentives, funded by the European Union’s IPA II fund, will be utilised for suppliers achieving these objectives, through the implementation of inclusive practices and support for gender equality.
IPA II Fund aims to support beneficiaries in adopting and implementing political, institutional, legal, administrative, social and economic reforms, with a view to EU membership, including a focus on enhancing economic and social development and small- and medium-sized enterprises.
Thomas Hans Ossowski, Ambassador of the Delegation of the European Union to Türkiye: “Sustainable and Inclusive Growth and Just Transition will remain key European priorities in the future. We need to ensure a shift towards a more resilient, inclusive and sustainable economy and the supply chains are central for this transformation. This action came very timely as an example of our excellent collaboration with the Ministry of Industry and Technology and EBRD. Through the EU Contribution of €17 million, the suppliers will be able to reduce their financial costs, on the condition that they improve their environmental, social and governance standards, such as resource efficiency, reducing CO2 emissions, digitalisation and better employment practices.”
Akbank CEO, Kaan Gür: “The devastating earthquakes have deeply impacted countless lives, businesses, and communities across the region. Through this project, we aim to tackle the unique challenges faced by supplier SMEs, particularly in the earthquake zone, and reaffirm our commitment to supporting the normalisation process. While supply chain finance addresses immediate needs, we are equally dedicated to ensuring that our solutions are both responsible and forward-looking, with sustainability remaining a core objective of this initiative.”
Sok Marketler CEO, Uğur Demirel: “As ŞOK Marketler, supporting local production and ensuring uninterrupted supply are among our foremost priorities. From the very first day following the devastating earthquake, we prioritized the safety of our employees and their families, mobilized our extensive supply chain and workforce from other regions and swiftly established container stores to provide uninterrupted food supply in the region. We also supported our suppliers while accelerating our investments to boost employment in the region. With our new program with EBRD and Akbank, we are taking another significant step forward. This program will provide our suppliers with access to affordable financing and technical support, enabling them to build a sustainable future while contributing to the region’s economic recovery. Through this program, we are proud to create long-term value for our supply chain partners, within our social and economic sustainability goals.”
The EBRD is among Türkiye’s key investors, with more than €20 billion committed through 455 projects and trade finance limits since 2009, most of it in the private sector.