Logo of Phnom Penh Post newspaper Phnom Penh Post - Acleda gets $70M to support women

Acleda gets $70M to support women

Motorists travel past an Acleda Bank branch on Phnom Penh’s Monivong Boulevard.
Motorists travel past an Acleda Bank branch on Phnom Penh’s Monivong Boulevard. Pha Lina

Acleda gets $70M to support women

Acleda Bank signed an agreement in Bangkok yesterday with International Finance Corporation and the Goldman Sachs 10,000 Women initiative for a $70 million long-term loan project to support Cambodia’s small- and medium-size enterprises (SME) owned by women.

At least 50 per cent of SME borrowers in Acleda’s bank portfolio are women, according to In Channy, president and group chief executive officer of Acleda Bank.

Before the loan given by IFC, a World Bank member, and Goldman Sachs, Channy said that Acleda and SMEs struggled with a huge supply and demand gap. Most clients preferred long-term loans but only short-term loans were available due to insufficient funds.

“The mismatch has limited the growth capacity of Cambodia’s SMEs,” he said. “The new loan from IFC will help us strengthen our capacity to provide loans to businesses that need a longer repayment period.”

While Acleda previously only granted loans for a little over three years, ranging from $1,500 to $3,000, this new loan is designed to have a five-year repayment period.

Noa Meyer, managing director and global head of the Goldman Sachs 10,000 Women initiative, which provides women entrepreneurs with practical business education, said that access to capital remains a major growth obstacle for Cambodia women entrepreneurs.

“Research has shown that investment in women entrepreneurs can drive significant global growth and improve societies,” said Meyer. “[The new loan] will place more capital in the hands of women entrepreneurs in Cambodia, who will drive future economic growth and job creation.”

Keo Mom, president of Cambodia Women Entrepreneurs Association, said that loan access for women entrepreneurs has traditionally been much more difficult to get. While she welcomed the initiative, she added that banks also need to increase loan size and offer lower interest rates.

“We need the bank to offer loans without the need for so much collateral,” she said. “I would want the bank to consider stocked goods and equipment as things they can evaluate to determine the loan.”

MOST VIEWED

  • Construction begins on $1.5B Kampot seaport

    The International Multi-Purpose Logistics and Port Centre, principally invested by Kampot Logistics and Port Co Ltd and projected to cost $1.5 billion, has officially broken ground in Bokor town, Kampot province. The multi-purpose logistics and port centre, located in Prek Tnaot commune, will be built on

  • Cambodia eyes key role in electronics, auto hubs in SEA

    Two roadmaps, part of the LDC’s economic diversification plan, were designed to see it through its migration process, but experts say the journey might be arduous, particularly in the presence of two established hubs in the region By 2028, Cambodia hopes to have exited the

  • Hun Neng, lawmaker and PM’s brother, passes away aged 72

    Hun Neng, chairman of the 4th Commission of the National Assembly, has passed away from heart disease at the age of 72 on the afternoon of May 5, according to the Ministry of Information. Hun Neng is the older brother of Prime Minister Hun Sen, and was

  • PM meets with US business giants

    Prime Minister Hun Sen has met with a number of major US companies who have expressed interest in investing in Cambodia, in a meeting convened by the US-ASEAN Business Council (US-ABC). A delegation of companies – including Amazon, Meta, Chevron, ConocoPhillips, ExxonMobil, Ford, Visa and Pernod

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180