The European Bank for Reconstruction and Development (EBRD) has made a significant stride in supporting the digital evolution of small and medium-sized enterprises (SMEs), with a €25 million loan to Türk Ekonomi Bankası (TEB) in Türkiye. This marks the first loan under the EBRD’s innovative Digital Transformation Financing Facility (DTFF), designed to advance the digital investments of SMEs.
The allocated funds are intended to underpin digital transformation projects within Turkish manufacturing SMEs. The DTFF initiative is executed in partnership with Türkiye’s Small and Medium Enterprises Development Organization (KOSGEB), fostering collaboration to promote digital progression.
Under the DTFF scheme, SMEs are encouraged to seek digital consultancy services, enabling them to evaluate their current digital standing and to formulate a comprehensive digital strategy. KOSGEB bolsters this initiative by offering rebates on consultancy fees and interest rate benefits for qualifying projects, thereby hastening the digital metamorphosis within the nation.
Emphasizing digital growth as a core priority, the EBRD has observed a 30% increase in digital projects in 2023. The DTFF represents a pivotal transition towards amplifying SME productivity through cutting-edge technology. This project is particularly noteworthy as it is the EBRD’s inaugural program concentrating solely on digital enhancement for SMEs.
SMEs in Türkiye historically face challenges in accessing financial resources, despite their substantial role in the economy. Moreover, compared to their EU and OECD peers, these enterprises exhibit a lower degree of digital sophistication. The DTFF endeavors to close this divide by supplying the necessary financial support for digital ventures, thereby propelling growth and innovation. As a pilot project, the DTFF is uniquely structured for broader regional application and includes measures to improve digital competencies.
The facility’s launch was celebrated in Ankara by Turkish Minister of Industry and Technology Mehmet Fatih Kacır and EBRD Managing Director for Türkiye Arvid Tuerkner. Ali Gokhan Cengiz, TEB’s SME Banking Assistant General Manager, also attended the event.
“Sustainable economic growth is contingent upon the active participation of SMEs,” Tuerkner remarked. “Through this first loan to TEB, the EBRD is excited to spearhead Türkiye’s digital and SME agendas, concentrating on a crucial target: digitally transforming Türkiye’s economy and equipping SMEs with a competitive digital advantage.”
Cengiz shared similar sentiments, emphasizing TEB’s commitment to nurturing the national economy and assisting customers with their digital ventures. “To maintain a competitive edge in today’s digital landscape, our SMEs must stay abreast of technological shifts and integrate them successfully. We are dedicated to enhancing the growth of our SMEs and their prominence in the market while aiding their digital transition,” he said.
Cengiz also expressed enthusiasm about supporting SME clients through the Digital Transformation Financing Program, aiding their technological roadmap and investments. He reiterated the bank’s ongoing collaborations with the EBRD and the benefits of this new program on the country’s digital investments.
With a history of robust investment in Türkiye, the EBRD has injected €19.6 billion into 441 projects since 2009, predominantly within the private sector.
