EIB Global, EU, and Cambodia Partner to Modernise Agriculture, Boost Rural Economy and Trade

The financial package includes a €15 million EU grant, supplementing an existing €60 million loan from EIB Global, and €4.5 million from the EU for technical assistance administered by EIB.

In Phnom Penh today, EIB Global—the international development branch of the European Investment Bank (EIB)—alongside the European Union (EU) and the Ministry of Economy and Finance (MEF) of Cambodia signed a major financing agreement totalling nearly €80 million for the Agriculture Services Programme for an Inclusive Rural Economy and Agricultural Trade (ASPIRE-AT). This initiative aims to modernise Cambodia's agricultural sector significantly, enhance food security, and bolster export potential.

The agreement was signed by Cambodian Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth and EIB Vice-President Nicola Beer during her inaugural visit to Cambodia in her capacity overseeing Southeast Asian projects. The ceremony was attended by Igor Driesmans, EU Ambassador to Cambodia, and Frew Behabtu, IFAD’s Country Director for Cambodia.

The financial package includes a €15 million EU grant, supplementing an existing €60 million loan from EIB Global, and €4.5 million from the EU for technical assistance administered by EIB. Furthermore, the International Fund for Agricultural Development (IFAD), a specialized agency of the UN focused on rural development, is co-financing ASPIRE-AT with an additional $49 million.

ASPIRE-AT will directly benefit 100,000 smallholder farmers and 25,000 land-poor households by providing modern tools, infrastructure improvements, and enhanced market access. The program specifically emphasizes empowering women, engaging youth, and supporting indigenous communities in rural regions.

Key investments will include upgraded agricultural infrastructure such as warehouses, collection facilities, drying pads, and rural roads to facilitate efficient transportation of bulk produce. Additionally, the Kaoh Khsach Tonlea bridge construction will connect remote farming areas with larger markets, piloting innovative cooperative models. Improved food safety and quality control standards through enhanced laboratory and research facilities, including the National Agricultural Laboratory, will ensure Cambodian products meet international market requirements.

EIB Vice-President Nicola Beer highlighted that this significant cooperation underscores Team Europe's commitment to tangible economic impacts—creating jobs, improving trade, and supporting Cambodia’s broader goal of becoming an upper-middle-income country by 2030 and a high-income nation by 2050.

Ambassador Driesmans emphasized the EU’s €19.5 million ($21.06 million) total grant contribution's critical role in building local agricultural capacities, financial access, and connectivity, fostering inclusivity and resilience in the agricultural sector.

Cambodia's Minister Aun Pornmoniroth expressed deep appreciation for the partnership, underscoring this agreement as symbolic of closer ties and aligned development strategies between Cambodia and European partners.

IFAD Country Director Frew Behabtu called the collaborative financing a transformative move towards rural empowerment, improved food security, and greater export-driven economic growth for Cambodia.