International Finance Corporation (IFC) – a financial institution that promotes private-sector development in the least developed countries (LDCs) – has increased its investment from $167.5 million to $438.5 million into the Kingdom’s financial sector, a rise of 260 percent over the past five years.
Informing this to Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance (MEF), the outgoing Resident Representative of IFC in Cambodia Asad Yaqub said that the IFC has escalated its investment volume in the financial sector.
In the farewell meeting, Yaqub praised the great relations between the Kingdom and the IFC for the cooperation to improve people’s lives, especially in the financial sector as the institution has increased funding sources for small and medium enterprises (SMEs) which account for 99 percent of the total business operations in the country.
Yaqub underlined that during his five-year term, IFC has increased its investment volume from $167.5 million to $438.5 million.
“Besides, IFC provide financial services to the Royal Government of Cambodia (RGC) in establishing the National Payment System (NPS) as well as drafting laws and regulations on Credit Information Sharing (CIS) which included the establishment of the Private Credit Bureau from 2012 until today,” he added.
He said that under the Public-Private Partnership (PPP) framework, the institution has strengthened its capacity-building capacity by attending study tours and training courses while also providing advisory services that support the development of infrastructure projects.
The Deputy Prime Minister expressed gratitude to Yaqub for his remarkable performance over the last five years, claiming many achievements to develop socio-economic in Cambodia, especially in actively contributing to RGC in the difficult circumstances to fight against the spread of Covid-19.
Pornmoniroth recalled the IFC’s contributions to several sectors such as finance, agriculture, education and soft and hard infrastructures since 2000.
“The institution has created new job opportunities, increased income and significantly reduced poverty in Cambodia, hence MEF is ready to continue its close cooperation with the IFC to strengthen and expand the project,” he added.
The Deputy Prime Minister asked the IFC to review and support the new and emerging sectors including the digital, green economy and small and medium enterprises.
Speaking to Khmer Times Dr Chey Tech, a socio-economic researcher, said that IFC’s major objective is to enhance the development of the private sector and investment in Cambodia.
“Over these years, the institution has focused on SMEs using three mechanisms such as financial support, technical assistance (TA) and capacity building, digitalisation, and the establishment of product standards as well as geographical identity (GI) to be exported overseas and compete with international products which contributes so much in terms of value-added, job creation and increased income for citizens,” he said.
Since SMEs account for 99 percent of all businesses, it has absorbed about 70 percent of Cambodia’s workforce and contributes to 63 percent of the total GDP, therefore the request from the Deputy Prime Minister to IFC strikes the right chord, Dr Tech added.
