Türkiye received a record of 2.6 billion euros (nearly $2.7 billion) in 2024 from the European Bank for Reconstruction and Development (EBRD), solidifying its position as the top receiver of funding for five years in a row.
The EBRD’s investments in Türkiye in 2024 increased by 4% compared to the previous year to 2.6 billion euros and was recorded as the highest investment on an annual basis, compared to 2.5 billion euros in 2023 and 1.6 billion euros in 2022, according to the bank on Thursday.
The bank’s record investment last year was driven by the private sector’s appetite for green transition and the bank’s ongoing support program for regions affected by the devastating February 2023 earthquake.
The bank invested in 51 different projects in the country, with 93% of all investment going to the private sector.
Projects in Türkiye accounted for about 16% of the bank’s total investment of 16.6 billion euros in the countries where it operated in 2024. For the fifth year in a row, Türkiye received the largest volume of investment of any of the bank’s investee economies. Türkiye was followed by Ukraine and Egypt.
The bank earlier this month disclosed that it achieved a new record in annual financing last year, driven by Türkiye and Ukraine, but it did not provide at the time the exact figure related to the projects in Türkiye last year.
Green investment projects enjoyed strong momentum, the bank said, accounting for 60% of the 2.6 billion euros investment.
The bank allocated a significant portion of the 1.5 billion euro support program announced last year for the earthquake zone to infrastructure projects in the affected areas.
The bank’s cumulative investment in Türkiye surpassed the 20 billion euro mark in 2024, reaching over 22 billion euros by the end of the year, it said.
There was also a change to the bank’s leadership in the country last year, with Elisabetta Falcetti taking over the Managing Director position from Arvid Tuerkner, who moved on to become Managing Director for Ukraine and Moldova. Falcetti is now the Bank’s Managing Director for Türkiye and Caucasus.
Green transformation projects
Falcetti, EBRD Türkiye Managing Director, told Anadolu Agency (AA) that it is significant that approximately 60% of investments in Türkiye are directed toward green transformation projects, including renewable energy, sustainable agriculture and resource efficiency. This highlights the commitment of both the public and private sectors to accelerate the transformation.
“For our record numbers in 2024, I must mention our earthquake response. We have already made available most of our 1.5 billion euro initial package and continue to finance projects that seek to work toward reconstruction in the region. Just this past year, we made available financing for companies in the region, announced supply chain finance programs aiming to support the region’s SMEs, and supported projects that seek to respond to the region’s need for critical services like clean water,” Falcetti said.
“A key factor in our success in Türkiye is the resilience and dynamism of the private sector. Their adaptability and expertise in navigating challenging conditions have fostered productive partnerships, driving impactful investments. We are confident in building on this success as we look ahead to 2025,” she said.
EBRD has been operating in Türkiye for nearly 15 years and has developed effective cooperation with public and private sector actors, Falcetti said.
In the statement on Thursday, the bank recalled that in 2024, it also spearheaded collaboration with the Ministry of Industry and Technology on the launch of the Türkiye Industrial Decarbonisation Investment Platform (TIDIP), an initiative also supported by the World Bank Group and International Finance Corporation (IFC). It said that the platform aims to deploy $5 billion in investment by 2030.
The bank also mentioned other initiatives it supported, including renewables, a $200 million syndicated loan to one of Türkiye’s largest discount retailers and infrastructure-related projects.
“The EBRD is here for the long haul. The most important thing for us to have a long-lasting investment outlook is a stable investment climate,” Falcetti said.
“Therefore, we monitor economic developments in the country very closely. So far, we are pleased to see a turnaround in investor confidence in Türkiye. We welcome the recent steps towards orthodoxy in economic policy and believe that with the right structural reforms, there can be potential for further improvement,” she added.
“What matters to us is that economic stability continues, and the autonomy of monetary authorities continues to strengthen. With this in mind, we hope to continue supporting Türkiye on its journey to becoming a greener, more inclusive, competitive and integrated economy.”
