By Bosphorus News Economy Desk
The World Bank Group has approved $750 million in financing for Türkiye's agrifood sector, backing a program that will provide long-term investment funding to farmers, producer organizations and food businesses while expanding access to commercial credit.
The financing will support the Türkiye Agrifood Sector Transformation for Rural Jobs and Growth (TARGET) Project, implemented by the Ministry of Agriculture and Forestry through the Agriculture and Rural Development Support Institution.
World Bank project documents put the program's focus on rural employment, agricultural finance, market access, food processing and climate resilience.
The World Bank expects TARGET to reach about 225,000 farmers by 2032 and support an estimated 110,000 more and better-paid jobs across Türkiye's agrifood economy. About 193,000 farmers are expected to gain stronger links to commercial markets, while 26,300 are targeted for expanded access to finance. The project is also expected to mobilize about $670 million in private capital.
$720 million facility forms the core
Most of the World Bank financing will come through a $720 million Reimbursable Finance Facility (RFF).
The facility will provide long-term financing for agrifood companies and producer organizations investing in processing, storage, logistics, food safety, climate resilience and access to domestic and international markets. The World Bank expects those investments to attract another $144 million in private co-financing.
A separate $30 million partial credit guarantee will support lending to farmers through participating financial institutions. The mechanism is intended to reduce lending risk and expand financing for productivity, modernization and climate-resilient technologies.
World Bank figures put the commercial lending expected to be mobilized through the guarantee at about $526 million. Together with the private co-financing attached to the RFF, that brings the project's private-capital target to about $670 million.
The International Finance Corporation (IFC), the World Bank Group's private-sector arm, will complement the project with advisory support and investments aimed at strengthening agribusiness capacity and access to finance.
TARGET is the first operation under the World Bank Group's Europe and Central Asia AgriConnect program.
World Bank Country Director for Türkiye Jean-Christophe Carret said the project would combine public resources with private capital to support rural employment, productivity and stronger agrifood value chains.
Approval follows Ankara's $5.3 billion program
The $750 million package was announced by Ankara earlier this year as the first stage of a larger agrifood financing program.
President Recep Tayyip Erdoğan said in May that Türkiye was planning $5.3 billion in financing over 10 years, with the first $750 million to be made available in 2026.
Under the framework announced at the time, eligible businesses can receive repayable financing covering up to 80% of investment costs, with up to 24 months without principal repayments, maturities of as much as seven years and financing of up to $10 million depending on project size. The funding is intended for construction, machinery and equipment investments in agriculture and food production.
The government also announced a credit-guarantee mechanism aimed at generating around $500 million in lending for primary agricultural producers.
The World Bank approval now sets out the financing structure for the first $750 million, split between long-term reimbursable investment finance and the credit-guarantee mechanism.
The Treasury and Finance Ministry said the latest approval would take the amount of long-term, favorable World Bank financing secured by Türkiye across all sectors in 2026 to more than $9 billion.
Treasury and Finance Minister Mehmet Şimşek said cooperation with the World Bank would continue in areas supporting Türkiye's production base and access to long-term external financing under the Medium-Term Program.
TARGET financing will cover cold-chain infrastructure, storage, processing, precision agriculture, digital systems and technologies aimed at reducing food loss and strengthening resilience to drought, heat, water scarcity and frost. Most of the $750 million will take the form of repayable investment finance, while the $30 million guarantee component is expected to mobilize a substantially larger volume of commercial lending to farmers.
Sources: World Bank Group, World Bank project documents, Türkiye Ministry of Agriculture and Forestry, Türkiye Treasury and Finance Ministry, Agriculture and Rural Development Support Institution, Anadolu Agency, Bosphorus News review and reporting.