Development bank targets female employment in Turkey

Umit Bektas/Reuters

• EBRD strategy supports women
• ‘Financial inclusion is very low’
• Skills growth and education focus

Turkish women are to be one of the main beneficiaries of the European Bank for Reconstruction and Development’s (EBRD) latest investment strategy, through a series of initiatives to fund training, skills growth and business development in the country. 

In its 2024-29 strategy, released on November 12, the European lender identified four key areas that it would focus on through investments in the Turkish economy, one of which is improving Turkey’s “human capital development” through supporting skills growth, gender equality and inclusive economic participation.

This addresses one of the weaknesses in the Turkish economy identified by the EBRD in its planning paper. 

“Women’s financial inclusion is very low and incommensurate with Turkey’s level of development. Female labour force participation needs to increase further to support growth,” the strategy document said.

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The problem was underscored on November 11, with a report by the state statistics agency Turkstat showing female unemployment levels for September at 12.3 percent, almost twice the male rate of 6.7 percent. Just 32.5 percent of Turkish women of working age are in employment, less than half the 67.3 percent of men registered as having a job.

Under the previous five-year plan, the EBRD – through funding provided to Turkish banks – disbursed nearly $450 million to almost 2,000 enterprises as part of its Women in Business programme. 

A further 185 businesses led by women were able to access advisory services under the scheme, while 1,300 women and young entrepreneurs benefited from training and skills enhancement courses. 

These initiatives are to be built on in the new programme, though final funding for the schemes has yet to be announced.

Asalettin Arslanoğlu, the Istanbul representative of the Confederation of Progressive Trade Unions of Turkey, welcomed the commitment to extra support for women’s employment initiatives, in particular for training and education. 

“The main issue in Turkey is the traditional thinking about women working, with the main income earner being seen as male,” he told AGBI.

“The key element has to be investment in education. Due to educational disadvantages faced by women it is vital to get them qualifications.”

Across the board

The EBRD is also working with the Union of Chambers and Commodity Exchanges of Turkey on a scheme to increase the number of women represented on the boards of listed Turkish companies and in senior management positions. 

According to an EBRD study, women represent just 17.5 percent of the board members of 475 companies listed on the Istanbul exchange, with more than a third of the firms having no female representation at all. 

One proposal to support this initiative is for financial institutions to provide incentives to companies where gender equality was promoted.

Along with gender affirmative and economic inclusion policies, the EBRD’s new five-year plan also commits to supporting projects accelerating Turkey’s green economy transition.

It also aims to strengthen Turkey’s infrastructure and regional integration via investments in sustainable transport, trade and logistics infrastructure and to help micro, small and medium scale enterprises.