Remarks by Polly Dunford, USAID Cambodia Mission Director, USAID Development Credit Authority (DCA) Signing Ceremony

Tuesday, October 17, 2017
Remarks by Polly Dunford, USAID Cambodia Mission Director, USAID Development Credit Authority (DCA) Signing Ceremony
Remarks by Polly Dunford, USAID Cambodia Mission Director, USAID Development Credit Authority (DCA) Signing Ceremony
USAID/Ty Chan

(as prepared for delivery)

 

  • Mr. Kea Borann, Chief Executive Officer of AMK
  • Mr. Veoun Sok, Chief Executive Officer of LOLC
  • Etienne Kettenmeyer, Managing Director of RMA
  • Distinguished Guests, implementing partners and Ladies and

Good morning and thank you all for coming here today!

The launch of the DCA, the second one here at the Mission, reaffirms the continued commitment of the U.S. Government to support the development of agriculture, economic growth, and food security in Cambodia. Our new partnership will enhance the access to finance for rural farm businesses and micro, small and medium enterprises in the agriculture sector throughout Pursat, Battambang, Siem Reap and Kampong Thom provinces.

Agriculture plays a significant role in Cambodia’s economy, where 70 percent of rural Cambodians rely on agriculture, fisheries, and forestry for their livelihoods. Cambodian agriculture has low productivity for a number of reasons, including the lack of improved technologies and practices, limited access to market and vulnerability to flash floods and drought.  Moreover, rural farm businesses and other agricultural enterprises face immense constraints in access to credits to overcome the constraints, and expand or modernize their agribusinesses. The financial institutions that typically lend to the farm businesses and micro, small, and medium agricultural enterprises have traditionally been extremely conservative in their lending. This partnership will address this vacuum or what is often called the “missing middle.”

We are excited to continue to support the Cambodian government’s efforts to improve agriculture productivity, food security and nutrition through what USAID knows how to do best – engage the private sector to meet development needs. 

This new collaboration will allow AMK, LOLC, and RMA to mobilize up to $15 million in loans over the next five years. I want to emphasize that USAID, along with our partners, thought long and hard about how to best utilize the DCA. That is why the size of loans are larger in size than the previous DCA - up to $100,000 - and with longer repayment schedules of 24 months.  We hope this better serves agriculture SMEs.

We expect that the loans generated through this partnership program will increase agribusiness investment into the sector and the region to drive economic growth, job creation, and increased sales of agricultural commodities. This, in turn, helps support the objectives of our food security and economic growth programs in Cambodia. 

I look forward to seeing the returns on investment this endeavor generates for Cambodia’s agri-businesses in the years to come.

Thank you!  

Phnom Penh
Issuing Country 

Last updated: October 30, 2017

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