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Author(s): Hang Panha HOUR, Sambathvirya NGUON, Sao Socheata PENGTE, Tithratana HEAV, Dalin PRUM, and Somnang SAN
Published Date: 10-February-2026
Abstract
This study examines the role of Development Finance Institutions (DFIs) in
supporting Agricultural Cooperatives (ACs) in Cambodia, using the country’s
Agricultural and Rural Development Bank (ARDB) as a case study due to its central
role in financing the agricultural sector. Agricultural development has been
identified as a key pillar of Cambodia’s economic strategy, with the modernization of the sector among the top priorities in the government’s recently launched
Pentagonal Strategy Phase I. In 2024, the agricultural sector contributed 16.6% to
the country’s GDP and accounted for about 36% of total employment in 2023.
Despite its importance, around 75% of Cambodia’s 6.8 million farmers are classified
as small-scale producer who face numerous challenges, including high production
cost, poor infrastructure, limited access to technology, and inadequate financial support.
ACs have emerged as an essential mechanism to support the farmers. However, their
operations continue to face significant barriers that limit their effectiveness and
capacity, such as restricted access to loans, loan mismanagement, lack of technical
and financial skills, and insufficient support from agricultural extension services. It
is important to note that as part of Cambodia’s Post-COVID-19 Economic Recovery
Plan 2021-2023, the government has offered low-interest financing (5% – 5.5% p.a.)
to farmers, ACs, agricultural traders, and small and medium enterprises (SMEs),
often using DFIs as the delivery mechanisms. This has enhanced the role of DFIs in
expanding funding to green businesses, promoting crop insurance, and modernizing
climate change information systems.