Turkey

As Turkey's economic output grows, so does its demand for energy. This is why cooperation with Turkey focuses on promoting renewables and improving energy and resource efficiency. KfW cooperates closely with Turkish development banks in this area: to increase energy and resource efficiency in the industrial sector and to promote electricity generation from wind and hydropower as well as solar energy, the Turkish environmental and development bank TSKB has received promotional loans of over EUR 500 million since 2012. TKYB, the state-owned development bank, received around EUR 85 million in development loans for this purpose, which were granted by KfW on behalf of the Federal Ministry for Economic Cooperation and Development. The aim is to reduce negative environmental and climate impacts in Turkish industry and the energy sector and make a sustainable contribution to climate change mitigation in Turkey.

After a longer period with stable growth rates, the economy in Turkey has lost momentum since 2017. Small businesses in urban and rural areas in particular are struggling even more than usual to access the financial services they need during the economic downturn. KfW Development Bank cooperates with Turkish banks that specialise in promoting micro, small and medium-sized enterprises (MSMEs). As a result of this growing and partnership-based cooperation, jobs are being created and retained, production capacities modernised and the living conditions of the poorer population improved, especially in rural areas.

And in the context of the refugee crisis, it is not only the Turkish population who are benefiting from job creation and employment but also Syrian refugees.

One priority area of German-Turkish cooperation is promoting municipal infrastructure. On behalf of the German Federal Government, KfW supported the expansion of water supply and wastewater disposal systems, the construction of sewage treatment plants and the development of waste management systems with a focus on projects in the structurally weak poorer regions.

KfW's activities in municipal development are currently concentrated on disaster control. Large parts of Turkey and in particular the metropolis of Istanbul with its 15 million inhabitants are extremely prone to earthquakes. As part of the Istanbul Seismic Risk Mitigation and Emergency Preparedness project (ISMEP), public buildings are being renovated or newly constructed to make them earthquake-proof. KfW's support includes in particular schools and hospitals.

Investments in municipal and social infrastructure are also being funded under projects to take care of and integrate refugees in Turkey, particularly in the education sector

Project information – Education for All in Times of Crisis  (PDF, 218 KB, non-accessible)

Since the crisis in Syria, the percentage of refugees that make up the total population of Turkey has been rising steadily. By the middle of 2019, around 4 million refugees were living in Turkey, more than 3.6 million of them from Syria alone, including one million school-age children. This makes Turkey the largest refugee host country in the world at present.

Germany and the EU are helping Turkey to meet the challenges presented by the refugee crisis and to integrate the refugees. KfW has been implementing refugee support projects on behalf of the BMZ and within the framework of the EU-Turkey Agreement (FRIT Facility) since 2015. The goal is to provide Syrian refugees in Turkey with opportunities for the future through education, vocational training and the availability of appropriate infrastructure, while at the same time supporting local communities in coping with the immense population growth - in some regions by up to 100%.

As part of the BMZ's Middle East/Turkey Cash-for-Work Programme, KfW Development Bank is helping to create job opportunities in the host communities and to improve living conditions. For example, refugees are supported in setting up a business through advanced training or start-up financing, and are placed in regular employment in cooperation with the Turkish employment agency ISKUR. Some of the measures are being implemented by United Nations aid organisations. KfW also supports UNICEF in ensuring that refugee children are taught by Syrian assistant teachers ( Project Information  (PDF, 158 KB, non-accessible)) and in providing basic health care for refugees in cooperation with the WHO.

KfW is financing the construction of as many as 340 preschools and schools as well as the energy-efficient refurbishment of existing schools with grants from the EU and its member states via the FRIT Facility (Facility for Refugees in Turkey) and the MADAD Trust Fund (EU Regional Trust Fund in Response to the Syrian Crisis), and in cooperation with the Turkish Ministry of Education (MoNE).

In cooperation with MoNE, KfW also supports vocational education and training as an important element of integration into the labour market by equipping at least 50 vocational schools and providing scholarships for Syrian and Turkish young people.

It would be difficult to meet the challenges of the refugee crisis without the involvement of the private sector. A project implemented by KfW in cooperation with ILO is helping to integrate Syrian refugees and Turkish citizens into the primary labour market. Another objective of our cooperation with Turkey is to strengthen the financial standing of micro, small and medium-sized enterprises (MSMEs) in order to generate employment in the host communities.

Project information – Supporting Syrian volunteer teachers in Turkey  (PDF, 158 KB, non-accessible)

You will find information on UNICEF's work in Turkey here.