About The Project
The EU-Funded FOSTER Project: Empowering the Private Sector to Foster Social and Economic Cohesion in Türkiye aims to contribute to the empowerment of the private sector in Türkiye to increase the formal employment of Turkish citizens and foster social and economic cohesion of foreigners under temporary and international protection and increase the resilience of Turkish SMEs operating in selected 15 provinces.
The Project targets small and medium-sized enterprises (SMEs) by strengthening their position as employers via enhanced access to finance with improved conditions and well-designed investment grant programs having high potential to ease conditions for retention and creation of formal employment.
| PROGRAMME DONOR | EUROPEAN UNION |
|
IMPLEMENTING PARTNER (CONTRACTING AUTHORITY) |
KfW Development Bank |
| PROJECT EXECUTING AGENCY | KOSGEB |
| IMPLEMENTATION CONSULTANT | FRANKFURT SCHOOL OF FINANCE & MANAGEMENT |
| PROJECT END DATE | 30 NOVEMBER 2024 |
| TOTAL BUDGET | 71.350.000 EURO |
| IMPLEMENTATION PROVINCES | Ankara, Adana, Bursa, Gaziantep, Hatay, İstanbul, İzmir, Kahramanmaraş, Kayseri, Kilis, Kocaeli, Konya, Mardin, Mersin and Şanlıurfa |
PROJECT BENEFICIARIES
- Small and medium sized enterprises (SMEs) operating in the project provinces,
- Foreigners under temporary and international protection and Turkish citizens that are unemployed, or are employed in informal jobs in the project provinces,
- Foreigners under temporary and international protection and Turkish citizens who are formally employed by the SMEs with a regular income in project provinces.
PROJECT COMPONENTS
The project consists of two components:
Component I – Interest/Profit Share Subsidy up to 30 Million Euros
Within the scope of Employment Committed SME Loan Finance Programme, a total of 30 million Euros of interest/profit share subsidy will be provided to SMEs. Through the Subsidy Mechanism, it is aimed to create formal employment for unemployed or informally employed Turkish citizens and foreigners under temporary and international protection to integrate them into economic life; and to retain the jobs of those who are currently employed.
| EXPECTED RESULTS | |
| Total jobs created under the Project | At least 3,000 formal employment positions retained or created for foreigners under temporary and international protection (at least 50%, all are ESSN beneficiaries or other foreigners) and Turkish citizens |
| Beneficiary SMEs | At least 1,500 businesses |
Programme II – Grant Support up to 35 Million Euros
Projects prepared by SMEs operating in 15 provinces will be supported. Through this support, registered employment will be created or retained for Turkish citizens, foreigners under temporary protection or international protection.
With the Employment Committed SME Support Programme, a total of 35 million Euros worth of grant support will be provided to SMEs.
| EXPECTED RESULTS | |
| Total jobs created under the Project | At least 2,788 formal employment positions retained or created for foreigners under temporary protection or international protection and Turkish citizens (at least 50% being foreigners) |
| Beneficiary SMEs | At least 697 businesses |
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