Tehran Municipality has offered to help startups affected by the rapid spread of the novel coronavirus in Iran.
TM’s Information and Communication Technologies Organization announced on Wednesday that Tehran Mayor Pirouz Hanachi has called on urban managers to help startups and fledgling tech firms affected by the COVID-19 outbreak.
As part of the measures, the firms are to be allowed to use residential buildings as workplaces. The municipality also plans to roll out more incentives for the firms in the near future, Mehr News Agency reported.
Noting that TM is authorized to define the functional purpose of buildings and issue permits based on Article 55 of Municipal Law, Hanachi said tech units can settle in residential buildings provided their activities do not cause inconvenience to neighbors.
“The startups will be allowed to continue their work in the residential buildings for three months at most, until the COVID-19 emergency ends,” he added.
Prior to the implementation of the plan, urban managers in the metropolis should reach an agreement over the details, Hanachi said.
He did not mention if any discount will be offered to tech units leasing the apartments.
First reported in China’s Wuhan Province in December 2019, the coronavirus has infected 1,016,128 people around the world, claiming the lives of 53,069. The number of recovered cases has reached 211,000, according to Reuters reporting on Friday.
Iran reported the virus outbreak in mid-February, which has so far taken the lives of 3,160 people out of a total of 50,468 infected people.
According to Iran’s Health Ministry, 16,711 patients have so far recovered from the disease.
More Support
Startups, tech firm and knowledge-based companies have been severely hit by the negative effects of the outbreak. Iranian authorities are increasing support to help restore their businesses.
In mid-March, the government-backed Iran National Innovation Fund announced that it is planning to pay 50 trillion rials ($301.2 million) in loans to knowledge-based companies and tech firms to boost their operations.
With the COVID-19 outbreak distorting the Iranian startup ecosystem’s prospects, the state fund is extending an aid package to the sector.
According to INIF chief Ali Vahdat, some 200 firms expressed interest in receiving the fund, although the most eligible will be selected for financial help, the institution’s website Inif.ir reported.
“The move is aimed at increasing the production of health-protective items needed during the pandemic, including N95 respirator and surgical masks, hand sanitizers, alcohol-based disinfectants, medical air disinfectant machines, antibacterial fabrics and covers for hospital use, as well as test kits and simulators,” he said.
Dozens of Iranian startups and knowledge-based companies are active in the production of healthcare products and medical supplies.
To receive the loan and start production, the applicant knowledge-based company should be certified by all the institutions involved, including Iran’s Food and Drug Administration and Health Ministry.
Vahdat noted that the Vice Presidential Office for Science and Technology and Iran Nanotechnology Innovation Council have agreed to scrutinize the credentials of applicants and introduce the final list of eligible firms.
Referring to the spread of novel coronavirus in the country, Vahdat said the pandemic cannot be controlled without utilizing the potentials of the domestic tech ecosystem.
“The country’s knowledge-based economy, which has currently grown significantly, is being helped by young entrepreneurs and tech teams to withstand the negative effects of the disease,” he added.
Panic buying by the public and hospitals’ soaring demand for the health-protective products have emptied drugstores and supermarket shelves of masks and sanitizers.
Officials say a rise in domestic production can help accelerate the replenishment of stocks.
Central Bank Steps In
The Central Bank of Iran had also announced its full support for tech firms, which could help them weather the current tough conditions.
During a meeting with senior INIF officials in mid-March, CBI Governor Abdolnasser Hemmati said the bank is willing to allocate financial support to help the tech ecosystem flourish.
Pointing to INIF’s endeavors in the past several years, Hemmati said that in order to strengthen startups and knowledge-based companies, support centers will be established in all provinces, which will ease startups’ access to legal and financial support.
Besides the provincial funding centers, plans are under consideration to set up offices for offering specialized services to firms active in the fields of nanotechnology, social innovative services and the internet of things, he added.
According to INIF, 4,800 knowledge-based companies are currently active nationwide and employing over 300,000 people.
