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Logo of Phnom Penh Post newspaper Phnom Penh Post - Rural and economic development: Providing opportunities for Cambodia’s dynamic society

Rural and economic development: Providing opportunities for Cambodia’s dynamic society

Cambodia has experienced significant economic development over the past decades. We strive to ensure that the rural low-income population is not left behind. We work where business performance is below its potential, access to land and financial services is constrained and infrastructure is lacking. This is crucial for growth and poverty reduction for the rural population.

Germany supports agricultural diversification, rural entrepreneurship and improved productivity. Through better access to technical know-how and innovations, thousands of female and male rural entrepreneurs increase the volumes and the competitiveness of their products and access new markets. We foster better cooperation within value chains, promote public and private sector partnerships and the creation of business federations. All this adds to significant employment and income generation. These activities are backed by credit programs for small businesses through local financial institutions.

Poor connectivity as well as high transport and energy costs are main constraints for rural development. We support Cambodia in improving its rural road network and countrywide electricity grid. Together with the Royal Government, we have already financed 2,100km of roads. This results in quicker and year-round access to markets, schools and health care for thousands of citizens. Furthermore, 700km of new transmission lines to villages have been built, financed by KfW as well, to the benefit of, 25,000 families who will get cheaper and more stable electricity. Improved infrastructure will enable rural households to economise on their day to day life.

Secure access to land is one of the essential prerequisites for economic development and for the realisation of human rights. Therefore, we support Cambodia in its comprehensive land sector reform with focus on the rights of the poor and vulnerable. Our major support aims at a transparent system of land administration, secure land tenure for the urban poor and the indigenous communities, inclusive spatial planning for rural provinces, districts and urban centres as well as distribution of state land to the landless and land poor.

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