ADB Approves USD 50 Million Loan to Boost Cambodia’s MSME Sector

• 27 November 2024
• Local News
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The Asian Development Bank (ADB) has approved a USD 50 million loan to enhance Cambodia’s micro, small, and medium-sized enterprises (MSMEs), aiming to strengthen the business environment and reduce trade barriers in Southeast Asia.

ADB Country Director for Cambodia, Jyotsana Varma, highlighted the MSME’s transformative potential stating: “By fostering the growth of these enterprises, we can attract investment, create new job opportunities, and support sustained economic growth.” The project focuses on streamlining regulations, improving public services, and enabling businesses to thrive in an increasingly competitive environment.

This initiative aims to directly support around 50,000 MSMEs by 2027, helping them register through Cambodia’s online business registration system and obtain essential licenses, certificates, and permits digitally. By simplifying the regulatory process, the program will empower local entrepreneurs to overcome current challenges that hinder productivity and competitiveness.

The ADB also emphasised that the program will facilitate cross-border trade through regulatory improvements and procedural streamlining, further enhancing Cambodia’s position as a trade-friendly economy.

Collaboration with the Cambodian government will ensure targeted solutions for MSME growth, bolstering the sector’s contribution to the national economy.

As Cambodia continues to pursue sustainable economic growth, this strategic investment by the ADB marks a critical step towards fostering innovation, expanding market access, and strengthening the backbone of Cambodia’s economy—its vibrant MSME sector.

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