What the Long Cooperation Relationship between JICA and the Medium Enterprises Development Organization of Türkiye (KOSGEB) Enabled: Visiting Beneficials and Prospecting the Future Together

On October 2, 2024, JICA visited two private enterprises, accompanied by the Small and Medium Enterprises Development Organization of Türkiye (KOSGEB), in Kahramanmaraş affected by in February 2023 earthquakes. This visit highlights the outcomes of the long-standing cooperation between JICA and KOSGEB, particularly through “Post-earthquake Support Project for Micro, Small and Medium Enterprises (MSMEs),” which has provided critical financial support to MSMEs affected by the earthquakes.

Building a Long-Lasting Partnership
JICA’s cooperation with KOSGEB began in the early 2000s when KOSGEB sought technical expertise to enhance its support for SMEs. JICA dispatched six senior volunteers between 2002-2003 and 2015-2017, focusing on capacity-development and knowledge transfer.
In 2010, JICA carried out a development study to strengthen KOSGEB’s consulting services, resulting in the introduction of a “qualification system for SME Consultants" in which pilot projects were implemented in Ankara, Istanbul, and Gaziantep.

Supporting MSMEs Through Crises
The partnership was developed into a new shape as a counterpart during the COVID-19 pandemic when JICA and KOSGEB launched “Rapid Support for Micro and Small Enterprises Project”, providing 300 million USD in the form of parallel co-financing with the World Bank. It helped nearly 60,000 MSMEs and sustained about 93,000 jobs, showcasing the partnership’s ability to swiftly respond to crises.
In the wake of the devastating earthquakes in February 2023, which severely impacted MSMEs in the affected region, the partnership once again proved vital. With KOSGEB estimating that 23.3% of MSMEs in the region were affected, JICA responded by providing a 20 billion Japanese Yen loan, titled “Post-earthquake Support Project for Micro, Small and Medium Enterprises.” By October 2024, more than 13,000 MSMEs had received financial support, a testament to the strength of our relationship.

Inviting KOSGEB Board Members to Deepen the Partnership
In 2024, JICA invited KOSGEB staffs to Japan, particularly the Tohoku region, to learn from the recovery efforts of Japanese MSMEs from the Great East Japan Earthquake. KOSGEB members visited the Japanese Reconstruction Agency, Tohoku bureaus of organization for Small & Medium Enterprises and Regional Innovation, the MSMEs in the area, and more to learn about Japanese experience and lessons from disaster recovery. One participant remarked, “The small companies in the affected areas that rebuilt their tsunami-devastated factories with a strong will and continued their business were a good reference for the Turkish case study.” This exchange solidified a shared commitment to disaster resilience and laid the groundwork for future cooperations.

First Visits to Funded Enterprises: Voices from the Ground
In October 2024, JICA and KOSGEB visited two enterprises in Kahramanmaraş that benefitted from the post-earthquake project. One enterprise, a manufacturer of scaffolding equipment and exporting to 40 countries, faced major damage to its factory and benefitted from JICA loan, which covered approximately 10% of the amount of necessary repairment. The General Manager expressed appreciation for KOSGEB/JICA for their contribution at hard times.

Another enterprise, producing metal parts for office furniture/sofas, also suffered significant structural damage. The company received JICA loan to repair and retrofit the factory. While the factory is back to full production, the company still faces challenges, such as employees moved to other cities for fear of aftershocks.

These visits allowed JICA, together with KOSGEB, to hear directly from the beneficiaries, reinforcing the importance of the partnership and trust with KOSGEB as we could now see the issues and think of solutions together. JICA hopes that the cooperation with KOSGEB for the MSMEs and the local people contributes to the early recovery and reconstruction and in other areas for development.