- First loan under EBRD digital transformation facility provided to TEB
- Digital transformation facility to be implemented with KOSGEB
- TEB to use proceeds to support digital transformation in manufacturing-sector SMEs
The European Bank for Reconstruction and Development (EBRD) is providing a €25 million loan to Türk Ekonomi Bankası (TEB) in Türkiye as the inaugural transaction under the Bank’s new Digital Transformation Financing Facility (DTFF) aimed at bolstering the digital transformation investments of small and medium-sized enterprises (SMEs).
The proceeds of the loan will finance the digital transformation investments of Turkish manufacturing SMEs. The DTFF programme is being implemented in close cooperation with the Small and Medium Enterprises Development Organization of Türkiye (KOSGEB).
SMEs joining the DTFF will be incentivised to use digital consultancy services to assess their digital maturity and develop a digital roadmap (an action plan to improve its business model through more use of advanced technologies). KOSGEB is supporting eligible manufacturing SMEs with digital-consultancy-fee rebates and interest-rate incentives for eligible projects, aiming to accelerate the country’s digital transformation.
Digital advancements remain one of the EBRD’s strategic priorities, with the Bank’s share of digital projects having risen by 30 per cent in 2023. DTFF marks an important shift, directing the focus towards enhancing SME productivity through modern technology. Prior to this initiative, the EBRD has supported SMEs in various capacities, but this project is the first effort dedicated to enhancing SME productivity through digitalisation.
SMEs face a persistent gap in accessing finance in the country, despite their significant contribution to production and sales. In addition, their level of digital maturity lags behind that of their counterparts in the EU and OECD. The Digital Transformation Financing Facility seeks to bridge this gap by providing financing resources for digital investments and solutions, fostering growth and innovation. It is a unique pilot project, tailored for implementation across various regions, and includes initiatives to enhance digital skills.
The inaugural transaction was announced in Ankara by Turkish Minister of Industry and Technology Mehmet Fatih Kacır and EBRD Managing Director for Turkiye Arvid Tuerkner. Ali Gokhan Cengiz, SME Banking Assistant General Manager for TEB, was also present at the launch event for the facility.
Arvid Tuerkner, the EBRD Managing Director for Türkiye said: “Sustainable economic progress hinges on the inclusion of SMEs. The EBRD has long been a staunch supporter of SMEs in our countries of operation, including Türkiye. By launching our Digital Transformation Financing Facility through this first loan to TEB, we are proud to champion Türkiye’s digital and SME agenda, focusing on a critical goal: the digital transformation of Türkiye’s economy and giving SMEs a competitive digital edge.”
Ali Gökhan Cengiz, SME Banking Assistant General Manager for TEB, said: “Our bank's priorities include contributing to the sustainable growth of the national economy and supporting our customers in their digital investments. In today's digitalized industry, our SMEs must keep up with digital transformation and adapt to this process successfully in order to compete globally. As a bank, we contribute to the growth of our SMEs and help them stand out in competition, while supporting them in their digitalization processes.”
“We are pleased to offer support to our SME clients participating in the Digital Transformation Financing Program for their road maps and technology investments within the scope of their digital transformation. We have already signed numerous collaborations with the EBRD. With this new program, we are delighted to continue our existing cooperation with the EBRD in a way that will benefit the digital investments of our country.”
The EBRD is among the key investors in Türkiye, with €19.6 billion invested in 441 projects and trade facilitation lines since 2009, the majority of them in the private sector.
