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The Better Cambodia > Blog > News > Partnership Triggers Advancement in Cambodia’s Fisheries Sector Through Innovative Financing
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Partnership Triggers Advancement in Cambodia’s Fisheries Sector Through Innovative Financing

Last updated: June 3, 2024 1:01 am
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A groundbreaking initiative has been launched that aims to significantly propel the post-harvest fisheries sector in Cambodia, thanks to a collaborative effort involving the EU-funded CAPFISH-Capture Programme. This initiative sees a strategic alliance between the Fisheries Administration (FIA), the United Nations Industrial Development Organization (UNIDO), and the Credit Guarantee Corporation of Cambodia (CGCC), embarking on a novel Investment Support Facility (ISF) scheme that debuted on May 29, 2024. The scheme, a pioneering example of blended financing, benefits from co-funding by the European Union.

The primary objective of the ISF scheme is to stimulate sustainable growth and technological innovation within Cambodia’s post-harvest fisheries sector. This sector, crucial for the national economy and for securing the livelihoods of a significant portion of the population, has faced numerous challenges in terms of technological advancement and sustainable practices. The new financing initiative aims to address these issues by providing critical support in the form of financial backing and expertise.

The involvement of the Credit Guarantee Corporation of Cambodia is particularly noteworthy. As an entity that facilitates access to finance for businesses, its participation ensures that the scheme is grounded in a realistic understanding of the financial barriers faced by enterprises in this sector. The support from CGCC can help mitigate risks for lenders and borrowers alike, fostering a more conducive environment for investment and growth.

Moreover, the collaboration with UNIDO brings to the table a wealth of international experience and technical expertise in industrial development, which is expected to complement the local knowledge and logistical capabilities of the Fisheries Administration. This partnership indicates a comprehensive approach, aiming not only at financial investment but also at enhancing the quality, efficiency, and sustainability of post-harvest processes.

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This initiative represents an innovative approach to tackling the economic and environmental challenges of Cambodia’s fisheries sector. By leveraging the strengths of international and local partners, as well as blending different financing mechanisms, the scheme promises to boost the sector’s productivity and sustainability. Moreover, it underscores the commitment of Cambodia and its partners to achieving long-term economic development goals by investing in critical sectors and utilizing innovative financing models to overcome obstacles.

As the ISF scheme gets underway, it offers a promising model for how collaboration and innovative financing can lead to substantial improvements in vital sectors of a country’s economy, setting a precedent for future initiatives in Cambodia and potentially in other nations with similar challenges and opportunities.

Source: Fresh News

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