Up to $15 million will soon be available to agricultural activities in Siem Reap, Battambang, Kampong Thom, and Pursat provinces as part of a new partnership between the U.S. Agency for International Development’s Development Credit Authority (DCA), AMK Microfinance Institution Plc, LOLC (Cambodia) Plc, and RMA Financial Services (Cambodia) Plc. The seven-year program seeks to address the current lack of financing for agriculture development.
The launch of this partnership reflects the United States’ commitment to increasing access to finance in Cambodia; a critical part of improving production and promoting agriculture-led economic growth. Since 2011, USAID (through the Feed the Future Initiative) has supported the agriculture and food security sectors in the four provinces surrounding the Tonlé Sap Lake through a variety of programs targeting small farmers and poor families. Today, to complement its Feed the Future programming, USAID is partnering with two microfinance institutions – AMK and LOLC – and the RMA leasing company to make available up to $15 million in loans for the agribusiness sector. These loans will expand agribusiness investment to drive economic growth, job creation, and sales of agricultural commodities.
“We are proud to encourage private sector lending in Cambodia’s agriculture sector upon which 70 percent of the population depends,” said USAID Cambodia Mission Director Polly Dunford. “We are confident that increasing access to credit in the agriculture sector will support Cambodia’s tremendous economic growth and will have positive impact on all Cambodians – whether in rural and urban areas.”
USAID’s DCA works with investors, local financial institutions, and development organizations to design and deliver investment alternatives that improve lives. To date, the DCA has helped leverage U$4.7 billion in financing in 76 countries. For more information about USAID, visit www.usaid.gov.
For more information:
Asia/MENA Relationship Manager
Development Credit Authority