On May 13, Japan International Cooperation Agency (JICA) signed a loan agreement with ACLEDA Bank plc. of Cambodia (ACLEDA Bank) for an overseas investment loan of up to US$85 million to finance a loan to Cambodia’s agricultural sector. The loan is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC), and will apply the Sustainable Finance Framework (*1) agreed upon by the two institutions in March 2021.
The agricultural sector is highly important in Cambodia’s economy, accounting for approximately 20% of GDP and 30% of employment.
This loan will contribute to improving access to finance for these rural farmers and others through ACLEDA Bank, the largest financial institution in the agricultural sector in Cambodia. The loan aims to contribute to sustainable economic growth in Cambodia by supporting the expansion of lending to the agricultural sector, and will contribute to SDGs (Sustainable Development Goals) Goal 1 (Eliminate poverty), 2 (Sustainable agriculture), 5 (Achieve gender equality), and 8 (Improve access to financial services).
ACLEDA Bank is the largest commercial bank in Cambodia, originating from an NGO established by the United Nations Development Program (UNDP) and the International Labor Organization (ILO) in 1993 after the end of the civil war, and has focused on financial inclusion in Cambodia since its inception, particularly for farmers and small and micro enterprises. The loan meets the criteria of the “2X Challenge: Financing for Women” (*3) initiative of the G7 development finance institutions, and more than 30% of the loan amount is expected to be disbursed through ACLEDA Bank to women farmers and women-owned small and micro businesses.
© Source JICA