Europe Commits Over USD 86 Million to Modernize Cambodian Agriculture

• 18 March 2025
• Uncategorized
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The European Union has announced a significant investment of nearly €80 million (approximately USD 86 million) to transform Cambodia’s agriculture sector and enhance farmers’ access to local and global markets.

The agreement was formalised today in Phnom Penh by HE Professor Aun Pornmonirath, Deputy Prime Minister and Minister of Economy and Finance, and Ms Nicola Beer, Vice President of the European Investment Bank (EIB).

This initiative will channel €15 million in grants from the EU to support a comprehensive program that aims to bolster the rural economy and improve trade in agricultural products. The program’s primary goals include modernizing agricultural practices, promoting food security, and strengthening the export potential of Cambodian agricultural products.

In addition to the European Union’s grant, the investment package comprises a €60 million loan from EIB Global and an additional €4.5 million allocated for technical assistance, bringing the total EU-supported investment to €79.5 million (over USD 86 million).

The funding is projected to significantly enhance Cambodia’s agriculture sector, potentially benefiting 100,000 smallholder farmers, 25,000 smallholder households, and 500 agribusinesses. Key initiatives will include upgrading the National Agricultural Laboratory, expanding critical agricultural infrastructure to improve sanitary and phytosanitary standards, and constructing a bridge on Koh Khsach Thanla to enhance transport and market access.

Moreover, the program is backed by the International Fund for Agricultural Development (IFAD), which has contributed an additional USD 49 million to support rural development efforts in Cambodia.

This investment marks a pivotal step toward strengthening Cambodia’s agricultural landscape, ensuring food security, and enhancing selected value chains’ competitiveness in domestic and international markets.

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