Turkey

Turkey is located at the crossroads of Asia, the Middle East, and Europe and has the ambition of becoming the 10th largest world power. It is subject to strong regional disparities and the political insecurity in the Middle East and is seeking the path towards more equitable and sustainable growth. AFD is contributing to this.
Metro, Istanbul, Turkey
AFD and Turkey : supporting the energy transition and promoting sustainable urbanization
Metro, Istanbul, Turkey

Supporting urban development

Haliç bridge, Istanbul

Supporting urban development

Turkey is experiencing rapid urban development. Investment needs for basic infrastructure – water, transport and electricity – are estimated at EUR 50bn by 2023. 


The municipalities of Izmir and Istanbul are working to improve the quality of life of their populations and ensure there is a balanced development in their territories by implementing a pioneering approach to urban planning. This initiative is being supported by AFD :

  • We have supported the extension of the Istanbul metro network by financing Line 2. This has made travel easier for Istanbul’s residents and will reduce CO2 emissions by 86,000 tons every year ;
  • We have cofinanced the upgrading of the maritime transport network in Izmir, the creation of two new tramway lines and the extension of its metro network. This has made the city’s transport services much more comprehensive and integrated, and also less polluting, with a reduction of 364,000 tons of CO2 a year.

We are also supporting :

  • The new Metropolitan municipalities. AFD is setting up technical cooperation to promote the energy transition, in partnership with Expertise France ;
  • A hundred or so small municipalities, in partnership with Denizbank, since 2008, to encourage them to invest in transport, water and waste treatment projects.
     

Supporting business development

Turkey solar farm

Supporting business development

Turkey has 3 million companies, 99% of which are SMEs. They provide 76% of employment and 50% of GDP. Turkish SMEs are consequently the country’s economic engine.


AFD supports these companies via several actions :

  • We encourage them to invest in renewable energies and improve their energy efficiency through partnerships with Turkish banks, such as Halkbank, TSKB and TEB ; 
  •  We support the upgrading to health or environmental standards of Turkish companies in accordance with international standards. We are working in partnership with the bank Ziraat Bankasi to upgrade agro-industry SMEs.
     

Preserving natural resources

Turkey's forests

Preserving natural resources

Turkey has biodiversity that is unique in the world (download the Biodiversity Report of the Nature Conservation Centre - DKM). Forests cover 28% of the territory and some 7.5 million people make a livelihood from their resources. The country is also surrounded by seas: the Mediterranean, the Aegean Sea, the Marmara Sea and the Black Sea, with exceptional marine resources. This natural heritage is attracting an increasing number of tourists: 35 million visitors in 2013. This flow could increase, or even double by 2023, if the region is stabilized.

AFD has developed three types of activities :

  • The management of marine protected areas with the French Facility for Global Environment (FFEM) ;
  • The development of sustainable tourism in coastal areas ;
  • Programs to combat deforestation and rehabilitate degraded forests, supporting Turkey’s General Directorate of Forestry. We also work with the French National Forestry Office to promote sustainable forest management in response to climate change.

Promoting employment for all

Turkey woman boat

Promoting employment for all

Turkey has set an ambitious economic objective : become the 10th largest world power. To achieve this, it needs to promote employment, especially for women: only 30% of them currently work, which is the lowest rate in OECD countries. Young people are the hardest hit by unemployment. Even graduates from higher education are not spared. 

We take action on two fronts :

  • Vocational training, to ensure a better match between market needs and the skills of the labor force ;
  • Gender equality in access to the labor market, to improve the vocational integration of women.
     
2.2
billion euros commited since 2004
716
million euros to finance the energy transition

Turkey, the future 10th largest world economic power in 2023, the year marking the centenary of the Turkish Republic ? It is in any case the stated ambition of this emerging country with 79 million inhabitants and a young and urbanized population. Turkey is at the crossroads of Eastern and Western civilizations, has a foothold in Asia and another in Europe, its main economic partner. It benefits from a strategic position and is asserting itself as a regional power. 

Turkey houses a biodiversity that is unique in the world and is bathed by the Black, Mediterranean, Marmara and Aegean Seas. It is aware of the threat of climate change and must ensure that it preserves its natural heritage. 

There are other challenges : a slowdown in growth, rising unemployment, political tensions and the terrorist risk, which have weakened the performance of tourism and reduced foreign investments. This is without forgetting the Syrian crisis, which has a strong impact on Turkey. 
To address these issues, the country has set out on a path towards more balanced and sustainable growth. 

AFD has been operating in the country since 2004 and is supporting its economic emergence through loans to the State, companies and private banks. It is accredited to manage European funds and also wishes to mobilize the Instrument for Pre-Accession Assistance (IPA), and thereby contribute to the European response in the implementation of the Refugee Facility. We have committed a total of EUR 2.2bn in Turkey to finance 44 projects.
 

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