In Cambodia, agriculture has been a mainstay of the country’s economy and constitutes about 35% of GDP. While several factors inhibit the competitiveness of agribusiness in Cambodia, limited access to finance is one of the biggest constraints. This project will help Acleda pursue a new strategic direction towards agribusiness lending. With GAFSP support, the bank will enhance lending in agribusiness to increase employment, enhance export earnings and maintain food security for people in need, especially smallholder farmers across Cambodia.
This project is expected to significantly increase the SME lending portfolio in Cambodia to $1,335 million in 2019 from $1,093 in 2014. In addition, the SME loan portfolio to women is expected to increase to $721 million by 2019. The project will also increase lending in microfinance by expanding the micro loan portfolio to $686 million by 2019. In addition, lending to agricultural finance will increase to $648 million by 2019.