Türkiye's first social impact project: Istanbul Codes

The Minister of Industry and Technology Mehmet Fatih Kacır, emphasised the importance of the 'Istanbul Codes Project' during the Social Impact Bond meeting held at Bogazici University.

"Within the framework of the project, our young people aged 18-35 who have been unemployed for a year are the target demographic. We hope to employ 550 young people in the information and communication technology sector with a budget of $1.25 million for this initiative," Kacır said.

"The first social impact bond initiative we launched as a pilot project in Istanbul will serve as an example for the upcoming initiatives we will undertake. In line with this, we also plan to expand impact investing practices in different regions and sectors based on the level of success we achieve."

Erkam Tuzgen, Secretary-General of Istanbul Development Agency (ISTKA), who noted that Social Impact Bonds are outcome-based contracts that provide answers to social problems, said: "It's a contract model in which the public, civil society, and private sector collaborate."

"The major distinction between these initiatives and regular development agency operations is that the private sector assumes full implementation and risk. There are three major stakeholders. The service provider receives pre-financing from the impact investor," Tuzgen said.

"The service provider collaborates with beneficiaries to accomplish the outcome goals established by the paying party and attempts to meet those targets. The outcome payer, also known as the results funder, is the entity that establishes what social needs exist from the start. How can these requirements be met?"

'A unique project'

Safak Muderrisgil, President of the Etkiyap Executive Board, described the launch as a watershed moment for the country, saying, "The uniqueness of Social Impact Bonds lies in their ability to provide solutions to societal issues through performance-oriented investment instruments."

"This occurs within the context of partnership between the public and commercial sectors. We're talking about a finance model in which every industry contributes to fixing a societal problem inside a framework of investment," he said.

What does the project aim?

The Istanbul Codes Project aims to improve young people's skills and capacities by providing them with software training. Young graduates of software training programs will be able to find work in the software business.

The purpose of the project is to provide 550 jobless teenagers with future-oriented skills and integrate them into the workforce. Companies will also be able to meet their demand for trained human resources in the software area.

Individuals between the ages of 18 and 35 with at least a high school graduate who have been unemployed for at least a year and want to work in the software business can apply for the program.