Category: Latest News

CGCC, CAPFISH-Capture Expand Support for Fisheries Enterprises

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-Harvest Fisheries Development project have reached a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector.

According to a press release on Wednesday, the two organizations officially signed support agreements for 11 fish processing enterprises under the Investment Support Facility (ISF).

The ISF, a key initiative of the CAPFISH-Capture project funded by the European Union (EU), is administered by CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA).

This innovative financing scheme amounts to approximately $2.5 million, consisting of $1 million in grant funding (40 percent of the total investment) from the project for equipment support, $1.25 million (50 percent) in loans from participating financial institutions (PFIs) guaranteed by CGCC, and $250,000 (10 percent) contributed by the beneficiaries.

Since its launch in late 2024, the ISF has supported an initial group of 11 fish processing enterprises, with more expected to benefit from the program.

So far, the project has provided around $320,000 in initial grant funding, leveraging an additional $340,000 in CGCC-guaranteed loans from PFIs such as ACLEDA Bank and Maybank Cambodia, along with $580,000 contributed by the enterprises themselves.

The ISF primarily supports post-harvest fisheries enterprises seeking to enhance their operations and expand their market reach both nationally and internationally. The program places a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards.

The program offers tailored support, including business development assistance, market linkages, food safety compliance, and adherence to environmental and social safeguards.

Credit to: Khmer Times, Published on 27 February 2025

 

Post-Harvest Fisheries Businesses Receive Financing Support

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture project have marked a major milestone in their efforts to support local fish processing enterprises.

On February 21, the two organisations signed support agreements for the first group of 11 enterprises, which have already benefitted from approximately $320,000 in grant funding under the Investment Support Facility (ISF).

This financial support is part of a broader initiative aimed at enhancing micro, small, and medium enterprises (MSMEs) in Cambodia’s post-harvest fisheries sector by providing vital resources for business growth, food safety compliance and market expansion.

The ISF combines grant funding, loans and contributions from beneficiaries to offer a comprehensive financial package.

“It is administered by the CGCC in collaboration with the UN Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA),” explained a joint press release.

This innovative financing scheme totals approximately $2.5 million.

It includes $1 million in grant funds (40% of the total investment) for equipment support, $1.25 million (50%) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and $250,000 (10%) contributed by the beneficiaries themselves.

“Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support,” it said.

“The project has provided its initial grant funding of around $320,000, leveraging an additional $340,000 guaranteed loans from CGCC’s partners, such as ACLEDA Bank and Maybank Cambodia, along with $580,000 from the enterprises themselves,” it added.

This collaborative funding structure is designed to provide a balanced approach to supporting business development, market access and sustainability.

The primary aim of the ISF is to assist post-harvest fisheries enterprises in improving their operations, meeting international food safety standards and expanding their market reach both domestically and internationally.

By focusing on sectors with high growth potential, particularly those led by women, youth and persons with disabilities, the ISF ensures that financial inclusion is central to its objectives.

All post-harvest fisheries enterprises are encouraged to apply for funding, as limited resources are available on a first-come, first-served basis.

Credit to: The Phnom Penh Post, Published on 26 February 2025

 

Fish Processing Businesses Receive Funding Boost to Expand

Posted on by Sorn Chhorvyvatey

Small- and medium-sized fish processing enterprises are set to see their operations expand after an agreement was signed between the Credit Guarantee Corporation of Cambodia and CAPFISH-Capture.

Eleven fish processing enterprises are set to benefit from support agreements signed between the Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-harvest Fisheries Development in a major milestone in promoting financial inclusion and growth in the post-harvest fisheries sector.

On February 21, 2025, the two organisations officially signed an agreement for 11 fish processing enterprises as part of the Investment Support Facility (ISF). The financing scheme totals approximately $2.5 million.

This comprises $1 million in grant funds (40 percent of total investment) from the project as equipment support, $1.25 million (50 percent) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and $250,000 (10 percent) contributed by the beneficiaries.

The ISF is an initiative under the CAPFISH-Capture project funded by the EU and administered by the CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA).

“Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support,” according to a statement.

“The project has provided its initial grant funding of around $320,000, leveraging an additional $340,000 guaranteed loans from CGCC’s PFIs, such as ACLEDA Bank and Maybank Cambodia, along with $580,000 from the enterprises themselves.”

The ISF has a primary focus on supporting post-harvest fisheries enterprises who are aiming to boost their operations and expand their market reach nationally and internationally. It has a strong emphasis on empowering businesses led by women, youth and people with disabilities.

Through the initiative, the CGCC and CAPFISH-Capture project aim to help eligible post-harvest fisheries enterprises meet food safety and market standards. Tailored support includes assistance with business development, market linkages, food safety compliance, and environmental and social safeguards.

For more information on the initiative and how post-harvest fisheries enterprises can apply for the funding through the CGCC website.

Credit to: KIRIPOST, Published on 26 February 2025

CMA and CGCC Forge Strategic Partnership to Enhance Financial Inclusion

Posted on by Sorn Chhorvyvatey

The Cambodia Microfinance Association (CMA) and the Credit Guarantee Corporation of Cambodia (CGCC) have officially signed a Memorandum of Understanding (MoU) to collaborate on promoting sustainable financial inclusion across Cambodia.

This official partnership was announced during the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing” held here on Jan. 23 under the presidency of Ros Seilava, Secretary of State at the Ministry of Economy and Finance and Chairman of CGCC.

According to a joint press release, AKP received this morning, this strategic partnership aims to foster the growth of banking and financial institutions (BFIs) and support micro, small, and medium enterprises (MSMEs) through capacity development, digital financial services, and enhanced financial literacy.

Under the MoU, CMA and CGCC will collaborate to strengthen and develop the capacity of MSMEs, BFIs, and stakeholders through training, workshops, seminars, and research studies.

This partnership will also focus on advancing financial literacy and digital finance and promoting the development of green finance in Cambodia. Both organisations are committed to leveraging their resources to ensure the successful implementation of various initiatives to boost the financial sector’s contribution to the country’s economic development.

Oknha Hout Ieng Tong, a CMA representative, said this partnership marks a significant step toward advancing financial inclusion in Cambodia.

“By combining our expertise and resources, we can create a more robust financial ecosystem that supports the growth of MSMEs and contributes to the country’s sustainable development,” he said.

No Lida, CGCC’S Chief Executive Officer, said that there are opportunities for CGCC, CMA, and CMA’s members to use credit guarantees to increase lending to underserved businesses across the country.

“This MoU is a testament to our shared commitment to fostering economic growth and sustainability in Cambodia,” he said.

The MoU is effective for three years from the date of signing and outlines a framework for cooperation in achieving the shared objectives.

Both parties are dedicated to ensuring the confidentiality of shared information and successfully executing agreed initiatives. AKP

Credit to: Khmer Times, Published on 24 January 2025

 

CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing

Posted on by Sorn Chhorvyvatey

On 23 January 2025, Ministry of Economy and Finance and Credit Guarantee Corporation of Cambodia (CGCC) co-organized the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing”, presided over by H.E. Ros Seilava, Secretary of State of Ministry of Economy and Finance, high representative of H.E. Deputy Prime Minister, Minister of Economy and Finance, at Hyatt Regency Phnom Penh.

CGCC Annual Seminar was organized to wrap up and celebrate accomplishments, review the progress of public credit guarantee schemes, award top-performing financial institutions, and launch new public credit guarantee product, as well as collect inputs from related stakeholders​ on innovating credit guarantee mechanisms to support green finance and develop small and medium enterprises in Cambodia. Approximately, around 150 participants from public institutions, domestic and international development partners, banks and microfinance institutions, securities firms, business associations, and related stakeholders attended the seminar.

Through this Annual Seminar, H.E. Ros Seilava officially launched the “Wholesale Guarantee Scheme of CGCC”, to provide guarantees on existing business loans of Participating Financial Institutions (PFIs) to share risk with PFIs and reduce the risk weight on the part of the exposure that is guaranteed by CGCC. According to the Prakas Credit Risk for Capital Adequacy Ratios in Deposit-Taking Banks and Financial Institutions of the National Bank of Cambodia on 29 June 2023, exposures denominated in riel or currency that are clearly and unconditionally guaranteed by the Royal Government of Cambodia, including guarantees by credit guarantee schemes established by the Royal Government of Cambodia, are zero percent risk-weighted.

In addition, H.E. Ros Seilava granted the Ministry of Economy and Finance’s Outstanding Awards to participating financial institutions including Prince Bank, Sathapana Bank, Canadia Bank, LOLC Microfinance Institution, and ABA, that have disbursed the most guaranteed accounts and a Special Award to Phillip Bank for maintaining the best Asset Quality in Guaranteed Loans in 2024.

H.E. Ros Seilava mentioned “Ensuring sustainable socio-economic development and building resilience to climate change are strategic goals of the Royal Government of Cambodia, with a priority on increasing sustainable and green finance to increase financial flows towards green investment and the green economy, and promoting climate-resilient and low-carbon public investment, etc. Investing in climate change not only can bring financial returns, but also socio-economic benefits. Therefore, I encourage relevant parties to focus on cooperation with the Royal Government in examining the feasibility of developing financial products, designing and implementing projects, and developing support mechanisms to increase the provision of green finance in Cambodia.”

In this annual seminar, there were also the Signing Ceremony on Credit Guarantee Agreement between CGCC and 2 new Participating Financial Institutions (PFIs), the Small and Medium Enterprise Bank of Cambodia (SME Bank) and Shinhan bank (Cambodia), and the Signing Ceremony on Memorandum of Understanding (MoU) between CGCC and Cambodia Microfinance Association (CMA) to improve financial inclusion and the financial literacy for SMEs.

Another objectives of the CGCC annual seminar is to create a discussion platform for sharing knowledge and experiences through a panel discussion on “Innovation of Credit Guarantee to Promote Green Financing”, shared by Mr. Kittipong Buranasiri , representative of Thai Credit Guarantee (TCG), Ms. Lee Hyeok, representative of Korea Credit Guarantee Fund (KODIT), Mr. Mohamed Azman Mohamed Taufik, representative of Credit Guarantee Corporation of Malaysia (CGC), and Mr. Nhim Soriya, representative of CGCC, moderated by Mr. Shakeel Ahmad, Deputy Resident Representative of UNDP Cambodia.

CGCC is a state-owned enterprise under the financial and technical guidance of the Ministry of Economy and Finance with a main mission to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises. CGCC has launched 5 individual guarantee schemes, 17 portfolio guarantee​ agreements, and bond guarantees, as well as the Entrepreneurship Program Initiative of CGCC (EPIC). As of 31 December 2024, after 4 years of operations, CGCC has approved credit guarantees on 3,139 accounts of business loans, amounting to USD 256.58 million across the country. Those businesses provide jobs for more than 30,000 employees.

Credit to: KIRIPOST, Published on 24 January 2025

CMA and CGCC Partner to Enhance Financial Inclusion and Promote Green Financing in Cambodia

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

The Cambodia Microfinance Association (CMA) and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Memorandum of Understanding (MoU) to advance financial inclusion and sustainability across Cambodia. The partnership, formalized during the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing,” presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC, aims to drive financial literacy, promote digital finance, and foster green financing initiatives.

Read More: Cambodia Microfinance Association Catalyzes Global Efforts in Sustainable, Inclusive Finance at 2024 AGM

Strategic Focus on Capacity Building and Green Finance

Under the three-year agreement, CMA and CGCC will collaborate on a range of initiatives to strengthen the capacity of micro, small, and medium enterprises (MSMEs), banking and financial institutions (BFIs), and stakeholders. Key areas of cooperation include:

  • Capacity Development: Joint training programs and workshops for BFIs, MSMEs, and stakeholders to enhance skills and knowledge.
  • Financial Literacy: Increasing awareness and accessibility of financial services among Cambodians.
  • Digital Financial Services: Promoting innovative solutions to improve financial inclusion.
  • Green Sector Initiatives: Encouraging sustainable practices in the financial sector to support environmental objectives.

“This partnership marks a significant step toward advancing financial inclusion in Cambodia. By combining our expertise and resources, we can create a more robust financial ecosystem that supports the growth of MSMEs and contributes to the country’s sustainable development,” said Oknha Hout Ieng Tong, CMA representative.

Enhancing Access to Underserved Businesses

The partnership will leverage CGCC’s credit guarantees to expand access to financing for underserved businesses, supporting their growth and integration into Cambodia’s financial system.

“We are excited to collaborate with CMA to enhance financial literacy and provide better access to financial services. This MoU is a testament to our shared commitment to fostering economic growth and sustainability in Cambodia,” said Mr. No Lida, Chief Executive Officer of CGCC.

By focusing on financial literacy and green financing, the partnership aligns with Cambodia’s broader economic development goals. Both organizations have committed to ensuring the confidentiality of shared information and the effective execution of initiatives outlined in the MoU.

Credit to: Cambodia Investment Review, Published on 24 January 2025

GuarantCo and CGCC Sign Deal to Accelerate Sustainable Infrastructure Investment

Posted on by Sorn Chhorvyvatey

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Framework Agreement as part of the PIDG Credit Enhancement Facility (CEF) initiative.

The initiative seeks to accelerate the development of domestic capital markets and enhance financial inclusion through developing onshore guarantee capability. The Framework Agreement encompasses counter- and co-guarantee support from GuarantCo and technical assistance from PIDG Technical Assistance to help boost CGCC’s capacity. The Framework Agreement is also aligned with the mandate and prioritisation from the Ministry of Economy and Finance, and the Securities and Exchange Regulator of Cambodia who are seeking to deepen the corporate and project bond market in Cambodia.

The Framework was signed alongside the first transaction between GuarantCo and CGCC, wherein GuarantCo has provided a 10-year, USD 7 million portfolio guarantee to CGCC. Marking GuarantCo’s fourth investment in Cambodia, the portfolio guarantee will allow CGCC to mobilise further bank lending towards small and medium-sized enterprises (SMEs) in the country, with a focus on businesses supporting the green transition.

SME development is a high priority for Cambodia where a lack of access to formal banking services is common due to the nascency of green financing in the country.

The Framework Agreement follows a Memorandum of Understanding (MoU) signed in August 2024, which seeks to increase and upscale CGCC’s capacity through its involvement in a range of large-scale Corporate and Project finance deals. CGCC and GuarantCo will look to execute counter- and co-guarantees under the Framework, with a particular focus on catalysing sustainable infrastructure financing via the capital markets in Cambodia.

The accompanying PIDG TA grant programme will support CGCC to develop its technical capabilities in capital markets, allowing both organisations to scale their impact in Cambodia.

Denesh Srishanker, Group Head, Credit Enhancement Facilities at PIDG, said: “The signing of this Framework Agreement and completion of its first transaction less than five months after our MoU with CGCC is testimony to the market acceleration we want to achieve together. Establishing in-country credit enhancement facilities is key to support local market development and is therefore an integral part of PIDG’s 2030 Strategy to mobilise innovative infrastructure projects across Africa and Asia.”

Chinmay Naralkar, Deputy CEO at GuarantCo, said: “We are delighted to put into place this Framework Agreement with the Credit Guarantee Corporation of Cambodia and whilst cementing it with an inaugural transaction. The Framework will support CGCC’s growth in providing progressive sustainable infrastructure financing through local capital markets to support a green transition. Aligned with our strategic plans, we look forward to continuing to build our momentum in Cambodia to the benefit of the environment and local people and their livelihoods.”

No Lida, CEO of the Credit Guarantee Corporation of Cambodia, said: “We are pleased to demonstrate early progress in our collaboration with GuarantCo and PIDG with this Framework and our first international deal. This initiative aligns with CGCC’s strategy to enhance our bond guarantee capacity and support the development of SMEs in Cambodia. We seek to embed the international best practices represented by GuarantCo and PIDG as we build our capacity. This is a true cooperation in which we will learn from each other’s expertise while driving forward sustainable infrastructure for Cambodia.”

Credit to: Kiripost, Published on 17 January 2025

Guarantco and CGCC Sign Framework Agreement and First Transaction Together To Accelerate Sustainable Infrastructure Investment In Cambodia

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Framework Agreement as part of the PIDG Credit Enhancement Facility (CEF) initiative.

The initiative seeks to accelerate the development of domestic capital markets and enhance financial inclusion through developing onshore guarantee capability. The Framework Agreement encompasses counter- and co-guarantee support from GuarantCo and technical assistance from PIDG Technical Assistance to help boost CGCC’s capacity. The Framework Agreement is also aligned with the mandate and prioritisation from the Ministry of Economy and Finance, and the Securities and Exchange Regulator of Cambodia who are seeking to deepen the corporate and project bond market in Cambodia.

USD 7 Million Portfolio Guarantee To CGCC

The Framework was signed alongside the first transaction between GuarantCo and CGCC, wherein GuarantCo has provided a 10-year, USD 7 million portfolio guarantee to CGCC. Marking GuarantCo’s fourth investment in Cambodia, the portfolio guarantee will allow CGCC to mobilise further bank lending towards small and medium-sized enterprises (SMEs) in the country, with a focus on businesses supporting the green transition.

Read More: No Lida Appointed as CEO of Credit Guarantee Corporation of Cambodia

SME development is a high priority for Cambodia where a lack of access to formal banking services is common due to the nascency of green financing in the country.

The Framework Agreement follows a Memorandum of Understanding (MoU) signed in August 2024, which seeks to increase and upscale CGCC’s capacity through its involvement in a range of large-scale Corporate and Project finance deals. CGCC and GuarantCo will look to execute counter- and co-guarantees under the Framework, with a particular focus on catalysing sustainable infrastructure financing via the capital markets in Cambodia.

The accompanying PIDG TA grant programme will support CGCC to develop its technical capabilities in capital markets, allowing both organisations to scale their impact in Cambodia.

CGCC Is Testimony To The Market Acceleration

Denesh Srishanker, Group Head, Credit Enhancement Facilities at PIDG, said: “The signing of this Framework Agreement and completion of its first transaction less than five months after our MoU with CGCC is testimony to the market acceleration we want to achieve together. Establishing in-country credit enhancement facilities is key to support local market development and is therefore an integral part of PIDG’s 2030 Strategy to mobilise innovative infrastructure projects across Africa and Asia.”

Chinmay Naralkar, Deputy CEO at GuarantCo, said: “We are delighted to put into place this Framework Agreement with the Credit Guarantee Corporation of Cambodia and whilst cementing it with an inaugural transaction. The Framework will support CGCC’s growth in providing progressive sustainable infrastructure financing through local capital markets to support a green transition. Aligned with our strategic plans, we look forward to continuing to build our momentum in Cambodia to the benefit of the environment and local people and their livelihoods.”

No Lida, CEO of the Credit Guarantee Corporation of Cambodia, said: “We are pleased to demonstrate early progress in our collaboration with GuarantCo and PIDG with this Framework and our first international deal. This initiative aligns with CGCC’s strategy to enhance our bond guarantee capacity and support the development of SMEs in Cambodia. We seek to embed the international best practices represented by GuarantCo and PIDG as we build our capacity. This is a true cooperation in which we will learn from each other’s expertise while driving forward sustainable infrastructure for Cambodia.”

Credit to: Cambodia Investment Review, Published on 18 January 2025

 

GuarantCo, CGCC Sign FWA to Boost Financial Inclusion

Posted on by Sorn Chhorvyvatey

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and the Credit Guarantee Corporation of Cambodia (CGCC) signed a Framework Agreement (FWA) to enhance domestic capital market financial inclusion through developing onshore guarantee capability.

This collaboration, part of the PIDG Credit Enhancement Facility (CEF) initiative, aims to develop onshore guarantee capabilities to foster financial inclusion and accelerate capital market growth, read a press release issued last Friday.

The agreement outlined a framework for counter- and co-guarantee support from GuarantCo and technical assistance from PIDG Technical Assistance to help boost CGCC’s capacity.

The FWA is also aligned with the mandate and prioritisation from the Ministry of Economy and Finance, and the Securities and Exchange Regulator of Cambodia who are seeking to deepen the corporate and project bond market in Cambodia.

The FWA was signed alongside the first transaction between GuarantCo and CGCC, wherein GuarantCo provided a 10-year, $7 million portfolio guarantee to CGCC.

Marking GuarantCo’s fourth investment in Cambodia, the portfolio guarantee will allow CGCC to mobilize further bank lending towards small and medium-sized enterprises (SMEs) in the country, with a focus on businesses supporting the green transition.

SME development is a high priority for Cambodia where a lack of access to formal banking services is common due to the nascence of green financing in the country.

The agreement follows a Memorandum of Understanding (MoU) signed in August 2024, which seeks to increase and upscale CGCC’s capacity through its involvement in a range of large-scale corporate and project finance deals.

CGCC and GuarantCo will look to execute counter- and co-guarantees under the FWA, with a particular focus on catalyzing sustainable infrastructure financing via the capital markets in Cambodia, said the statement.

The accompanying PIDG TA grant program will support CGCC in developing its technical capabilities in capital markets, allowing both organisations to scale their impact in Cambodia.

Denesh Srishanker, Group Head, Credit Enhancement Facilities at PIDG, said that the signing of this FWA and completion of its first transaction less than five months after our MoU with CGCC is testimony to the market acceleration we want to achieve together.

“Establishing in-country credit enhancement facilities is key to support local market development and is therefore an integral part of PIDG’s 2030 Strategy to mobilise innovative infrastructure projects across Africa and Asia,” said Srishanker.

Chinmay Naralkar, Deputy CEO at GuarantCo, said GuarantCo is delighted to put into place this FWA with the Credit Guarantee Corporation of Cambodia while cementing it with an inaugural transaction.

“The Framework will support CGCC’s growth in providing progressive sustainable infrastructure financing through local capital markets to support a green transition. Aligned with our strategic plans, we look forward to continuing to build our momentum in Cambodia to the benefit of the environment and local people and their livelihoods,” Naralkar said.

No Lida, CEO of the Credit Guarantee Corporation of Cambodia, said that this initiative aligns with CGCC’s strategy to enhance our bond guarantee capacity and support the development of SMEs in Cambodia.

“We seek to embed the international best practices represented by GuarantCo and PIDG as we build our capacity. This is a true cooperation in which we will learn from each other’s expertise while driving forward sustainable infrastructure for Cambodia,” he said.

Credit to: Khmer Times, Published on 20 January 2025

Maybank’s New Financing Scheme to Boost SMEs

Posted on by Sorn Chhorvyvatey

Maybank Cambodia, in partnership with the USAID-funded Feed the Future Cambodia Harvest III project and the Credit Guarantee Corporation of Cambodia (CGCC), on Saturday launched the ‘SME Export Finance Solution’ to support the growth of Small and Medium Enterprises (SMEs) in the country.

This initiative also includes the Building Capacity and Capability (BCC) programme for SMEs.

The partnership between the three parties aims to elevate the competitiveness of local SMEs on the global stage, fostering sustainable growth and strengthening Cambodia’s presence in international markets.

By offering tailored financial products—such as working capital loans, trade finance, competitive foreign exchange in 21 currencies, remittance solutions, and export credit facilities—the initiative equips SMEs with resources to overcome financial barriers.

The launch of the ‘SME Export Finance Solution’ was marked by the signing of an agreement between Rath Sophoan, Chief Executive Officer and Country Head of Maybank Cambodia and Nimish Jhaveri, Chief of Party of Feed the Future Cambodia Harvest III.

In his welcoming remarks, Sophoan said that the SME Export Finance Solution will be a game-changer for Cambodian businesses aiming to expand exports to existing or new international markets.

“By empowering SMEs to overcome traditional barriers to finance, this partnership advances individual business growth while contributing to the broader economic development of Cambodia,” he stated.

“As SMEs are the backbone of the Cambodian economy, by equipping them to succeed in export markets, this collaboration will fuel job creation, foster sustainable economic growth, and strengthen Cambodia’s position as a competitive player in the ASEAN region and beyond,” Sophoan noted.

“This initiative also reinforces Maybank’s commitment to its role as the Best ASEAN Bank in Cambodia, leading the way in regional economic empowerment,” he added.

Nimish Jhaveri, Chief of the Party of Feed, the Future Cambodia Harvest III, said the new trade financing solution would provide SMEs with the necessary capital to manage production costs, invest in quality improvements, and fulfil international orders.

“An effective trade financing solution is crucial for these enterprises, as it not only helps bridge cash flow gaps but also enables them to compete more effectively by facilitating timely deliveries and expanding their market reach,” he noted.

“Together, we ensure that these enterprises are equipped not only with financial resources but also with the knowledge and expertise required to succeed globally,” Jhaveri added.

In conjunction with the SME Export Finance Solution, Maybank Cambodia, CGCC, and Harvest III also announced the ‘SME Building Capacity & Capability (BCC) Programme 2024 & 2025’, a flagship initiative designed to further equip SMEs with essential business skills and knowledge.

Since its inception in 2021, the BCC Programme has trained hundreds of SMEs on business fundamentals, advanced techniques, and modern technologies.

Building on this success, in 2024 and 2025, the programme aims to deliver specialised sessions on trade finance solutions, financial management, and strategic planning, led by industry experts from the accounting and business, consulting, and finance sectors. This training empowers SMEs with practical insights and skills needed to enhance their operations and optimise their growth potential.

No Lida, CGCC’s Chief Executive Officer, expressed his strong support for this initiative, stating that the BCC programme equips SMEs with essential skills and knowledge, empowering them to access finance and expand their businesses.

“Through this initiative, we can help improve financial literacy and lay the groundwork for SMEs to thrive locally and internationally. This programme is a crucial step toward our shared vision of fostering a resilient and dynamic SME sector that significantly contributes to Cambodia’s economic growth,” Lida said.

With this initiative, Maybank Cambodia, Harvest III, and CGCC are building a robust support ecosystem for Cambodian SMEs, positioning them to thrive in domestic and global markets.

This initiative provides SMEs with the resources, knowledge, and confidence to scale their businesses and pursue international opportunities through the combined power of financial solutions, capacity-building programmes, and reduced collateral requirements through credit guarantees.

 

Credit to: Khmer Times, published on 25 November 2024

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