The agreement was formalised by finance minister Aun Pornmoniroth and European Investment Bank vice-president Nicola Beer on March 14. Supplied
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 the Kingdom’s agricultural sector.
The aim is to improve food security, boost export potential and enhance market access for smallholder farmers across the country.
“The EU financing will help modernise Cambodia’s agricultural sector, equipping smallholder farmers, agribusinesses and producer organisations with tools and infrastructure to boost production, provide access to new markets and improve food safety,” explained a joint press release.
“The project will directly benefit 100,000 smallholder farmers and 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,” it added.
The funding agreement, signed today on March 14, in Phnom Penh, 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.
The agreement was formalised by Minister of Economy and Finance Aun Pornmoniroth and EIB vice-president Nicola Beer.
The signing ceremony was also attended by EU ambassador to Cambodia Igor Driesmans and IFAD country director Frew Behabtu.
“The European Investment Bank is proud to support ASPIRE-AT and Cambodia’s agricultural sector, which plays a vital role in the country’s economy and food security,” said Beer.
“With this financing, we are helping the government strengthen food security, increase farmers’ incomes, and open up new market opportunities for Cambodian products,” she added.
She described the agreement as a great example of how Team Europe delivers real impact, creating jobs, driving trade and strengthening Cambodia’s economy.
EU ambassador Driesmans said he was proud to be part of this important agricultural investment project.
“Our support of €19.5 million ($21.06 million) in grants will help farmers and their communities improve primary production, processing capabilities and market access through capacity building and access to financing, agricultural laboratory support, and better rural and urban connectivity,” he explained.
He added that they are helping the sector to become more inclusive and resilient, benefiting all Cambodians, especially those in rural communities.
The programme will fund the construction of vital infrastructure such as warehouses, drying pads and access roads, including the Kaoh Khsach Tonlea bridge, which will connect an island to the mainland to enhance market access.
Additionally, the investment will improve food safety through the expansion of laboratories and research facilities, ensuring better quality control and boosting the Kingdom’s competitiveness in global markets.
Pornmoniroth expressed his gratitude, noting the agreement marks a significant step in Cambodia’s efforts to modernise its agricultural sector and improve living standards in rural areas.
“He also reiterated the government’s commitment to fostering future partnerships with the EU, EIB and IFAD to support Cambodia’s development goals as it aims to achieve its goal of becoming an upper-middle-income country in 2030 and a high-income country in 2050,” said the joint press release.
“This significant investment is a powerful step toward transforming Cambodia's agricultural sector. IFAD is proud to be part of this effort to empower rural communities and enhance food security,” added IFAD country director Behabtu.
The ASPIRE-AT programme builds on the success of its predecessor, the ASPIRE programme, which ran from 2015 to 2022.
By fostering sustainable agricultural growth, 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.
