In a notable development for Cambodia’s agricultural sector, the Agriculture and Rural Development Bank (ARDB) has allocated over USD 400 million in loans during the first six months of 2024. This substantial financial support spans various branches of the sector, including farming, livestock rearing, and agri-food processing.
Kao Thach, who serves as the Royal Government Delegate in Charge and the Chief Executive Officer of ARDB, disclosed on Wednesday that the bank had funneled approximately USD 440 million into the sector by mid-2024. This initiative is intended to pave the way for producers to amplify their production capabilities and enhance their export potential.
Thach elucidated that the Royal Government of Cambodia, through collaborative efforts with the Ministry of Economy and Finance, has systematically rolled out various financial assistance packages. These are aimed at fostering the growth of agricultural production and facilitating the sector’s access to international markets, thereby propelling exports.
“By the closure of the initial six months of 2024, our commitment has culminated in disbursing around USD 440 million to bolster activities such as cultivation, animal husbandry, and food processing,” Thach stated. He emphasized the government’s consistent efforts, through ARDB, to extend credit facilities that augment productivity in these critical areas.
A significant stride in ARDB’s mission was marked by a recent Memorandum of Understanding (MoU) signing ceremony with the Credit Guarantee Corporation of Cambodia (CGCC). This event saw the participation of Thach and Wong Keet Loong, the Chief Executive Officer of CGCC. The agreement envisages that ARDB will gain access to credit guarantee services from CGCC for both ongoing and future projects.
Additionally, a report by the Ministry of Agriculture, Forestry, and Fisheries (MAFF) highlighted an impressive near 60 percent surge in agricultural exports in the first half of 2024, relative to the same timeframe in 2023. This notable growth was proudly shared by Prime Minister Hun Manet on social media, marking a record escalation in exports over the past five years.
According to recent data, Cambodia’s agricultural exports have exceeded six million tonnes, showcasing a nearly 60 percent growth from the previous year and reaching 77 global markets. Notably, 94 percent of these exports catered to primary markets such as China, Vietnam, and Thailand. China’s imports featured bananas, rice, cassava, mango, and lentils; Vietnam imported cashew, cassava, and fresh mango, whereas Thailand obtained cassava, fresh mango, pepper, and bran.
The cumulative value of non-rice agricultural produce and rice exports surpassed USD 1.8 billion, with rice exports alone accounting for more than USD 400 million. This significant financial impetus underscores the ARDB’s central role in fostering the growth and international reach of Cambodia’s agricultural sector.
Source: Fresh News
