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The Government special project supporting Small and Medium Enterprises in Agro-processing, Agri-Industry and Agricultural sector

March 14, 2020 586 Views 0 Shares

The Royal Government of Cambodia has main objective of transform and expand small and medium enterprise business to be driving force promoting the economic growth by means of the better production to substitute the importing goods as well to give additional job for people who work for small and medium enterprises and for farmer producing vegetable, fruit, animal raising and aquacultures. In responding to this objective also is part of the intervention for Covid-19 and EBA, the Government has put into effect special financing program with total amount of 50 million USD through Agricultural and Rural Development Bank (ARDB) in order to provide loan with low interest rate supporting handicraft, small and medium enterprises in agro-processing and agri-industry, agricultural cooperative, producer group, and owner of medium-large enterprises.
The increasing number of handicraft, small and medium enterprises has been playing vital role in economic diversification, job-added, and increase people’s income, which contribute to the economic growth. Meanwhile, to ensure the driver of handicraft sector, small and medium enterprise with sustainability and competitiveness, it requires the related institutions to continue to contribute to the issues as bellows:

  • Lack of finance support and financing products and services is not appropriate with cash flow of agricultural value chain.
  • The registration of small and medium enterprise is complicated, which takes long time and duplicates related authority, particularly enterprise needs to pay informal expenses
  • Lack of the linkage of agricultural value chain amongst producer, processor, and collector for distributing.
  • High production cost (include transportation, electricity, input materials)
  • The production is scattered without main collection.
  • The producer needs the fastest cash payment in order to continue their production
  • Technical, storage before and after harvest, products design as well the packaging have not been attractive to the buyers.
  • The competitiveness of local production which is not industry based and high price, with the importing goods, which is industry based and low price
  • Lack of entrepreneurship and limited management capacity
  • The buyer has perception on “foreign goods” rather than local goods.

Objective of financing program

  • To contribute to the development and expansion of the existing handicraft, small and medium enterprise, agricultural cooperative, producer group and owner of medium-large enterprise of agricultural value chain which relates to processing, agro-industry, in order to serve local demand and export with standard quality to the market.
  • To promote food processing from agricultural products.
  • To create and expand market of farmer.
  • To contribute to job-creation and increase income for people, which can ensure food security and to promote the export of agricultural product to maintain the sustainability of national economic growth.
  • To promote public health by using of safety vegetable, fruit, meat, food and local processing goods.
  • To promote the linkage amongst farmer who is producer, processor, and market with sustainability.


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