Cambodia & Cooperation: European investment of $86.69 million to support modernization of the agricultural sector

The EU, in partnership with the European Investment Bank (EIB) and the International Fund for Agricultural Development (IFAD), has announced a significant investment of nearly €80 million ($86.69 million) to support the modernisation of Cambodia's agricultural sector.

Pic by Neil Palmer (IWMI). Use of groundwater for irrigation in Kandal Province, Cambodia

The aim is to improve food security, boost export potential, and enhance market access for smallholder farmers across the country. The project will directly benefit 100,000 smallholder farmers, 25,000 land-poor households, and 500 agricultural enterprises, creating new income opportunities, particularly in rural areas, with a strong focus on empowering women, engaging young people, and supporting indigenous communities.

Financing

The funding agreement, signed on March 14, includes a €15 million ($16.25 million) EU grant to support the Agriculture Services Programme for an Inclusive Rural Economy and Agricultural Trade (ASPIRE-AT). This grant supplements a €60 million ($65 million) loan from EIB Global and €4.5 million ($4.8 million) in technical assistance from the EU, bringing the total investment to nearly €80 million. IFAD is co-financing the programme with $49 million, highlighting the commitment of international partners to strengthen Cambodia's agricultural infrastructure.

Impact

The agreement was formalized by Minister of Economy and Finance Aun Pornmoniroth and EIB vice-president Nicola Beer, who described the agreement as a great example of how Team Europe delivers real impact, creating jobs, driving trade, and strengthening Cambodia's economy. The investment will help farmers and their communities improve primary production, processing capabilities, and market access through capacity building, access to financing, agricultural laboratory support, and better rural and urban connectivity.

ASPIRE-AT

The ASPIRE-AT programme builds on the success of its predecessor, the ASPIRE program, which ran from 2015 to 2022. It aims to reduce rural poverty and enhance climate resilience for 125,000 rural households, with a strong emphasis on gender inclusivity, youth involvement, and support for indigenous people.