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- EBRD, Akbank and ŞOK join forces to support earthquake-hit suppliers
- More than 100 suppliers set to benefit from the project
- Project includes EU support for technical cooperation on human capital
The European Bank for Reconstruction and Development (EBRD) is participating in Akbank’s supply chain finance (SCF) programme for Turkish firm ŞOK.
The EBRD’s involvement will increase the size of the SCF programme, allowing more than 100 suppliers – which are mostly based in cities affected by the 2023 earthquakes and are mostly small and medium‑sized enterprises (SMEs) – to benefit from the programme for the first time.
The EBRD’s unfunded risk participation in the SCF programme will support eligible suppliers based in Türkiye, providing them with access to affordable working capital solutions. By facilitating the expansion of the SCF programme, the EBRD’s support will strengthen ŞOK’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 2023 earthquakes claimed more than 55,000 lives and caused widespread destruction. However, even prior to the earthquakes, the region in question, which is home to 14 million people, was already struggling with economic challenges in areas such as human capital. The earthquakes exacerbated the situation further, with the region losing close to 40 per cent of its workforce to emigration.
Amid financial challenges and supply chain disruption, production and exports in the region have not fully recovered, mainly owing to shortages of workers – which, in turn, are being driven by insufficient housing facilities and a lack of essential services. This makes human capital growth a key aspect of the region’s economic recovery.
The EBRD’s Deputy Head of Türkiye, Erdem Yasar, said: “The EBRD remains firmly committed to supporting economic recovery and reconstruction in the earthquake-affected region, recognising that strengthening supply chains is integral to sustained economic progress. We commend ŞOK and Akbank for developing this impactful programme, which will provide much-needed support to local suppliers. We hope that this initiative will inspire others to create innovative financing solutions that foster vibrant economic growth and attract workers back to a revitalised economy.”
In addition, as part of the project, technical cooperation funded by the European Union’s IPA II fund will help suppliers to identify challenges in the area of human capital and establish corresponding solutions in order to overcome them. Incentives financed by the IPA II fund will be utilised for suppliers achieving these objectives, through the implementation of inclusive practices and support for gender equality
The IPA II fund helps countries to adopt and implement political, institutional, legal, administrative, social and economic reforms with a view to achieving EU membership, with a focus on fostering economic and social development and supporting SMEs.
Thomas Hans Ossowski, Ambassador of the Delegation of the European Union to Türkiye, said: “Sustainable and inclusive growth and a 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 supply chains are central to this transformation. This very timely as an example of our excellent collaboration with the Ministry of Industry and Technology and the EBRD. The EU’s 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, increased digitalisation and better employment practices.”
ŞOK’s CEO, Uğur Demirel, said: “At ŞOK Marketler, supporting local production and ensuring uninterrupted supply are among our foremost priorities. From the very first day following the devastating earthquakes, we prioritised the safety of our employees and their families, mobilised 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 investment to boost employment in the region. Through this new programme with the EBRD and Akbank, we are taking another significant step forward. This programme 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. We are proud that, through this programme, we are creating long-term value for our supply chain partners as part of our social and economic sustainability goals.”
Akbank’s CEO, Kaan Gür, said: “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 region, 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.”
The EBRD is one of Türkiye’s key investors, with more than €21 billion committed through 461 projects and trade finance limits since 2009, most of it in the private sector.