Supporting Microfinance in Cambodia

Cambodia

OFID's financing facility will be utilized by Sathapana to provide funding to micro, small and medium-sized enterprises (MSMEs) in Cambodia. The economic sectors covered will reflect the activities of Sathapana in particular for agriculture, trade and commerce and services.

MSMEs are a vital part of the Cambodian economy, contributing to both economic and social development. They play an important role in creating jobs (an estimated 40%-50% of total employment can be attributed to MSMEs), generating income for low-income people and vulnerable populations and fostering economic growth, social stability and contributing to the growth of the private sector.

OFID's loan will help reduce poverty in targeted areas as Sathapana provides small business loans to low income households and is very active in rural areas and towns in Cambodia, which are often under-banked.