PHNOM PENH: Cambodia’s Small and Medium Enterprise (SME) Bank played a significant role in supporting local businesses by disbursing nearly $500 million in loans to over 3,400 enterprises by the end of 2023, according to a recent report. This vital financing aims to fuel the growth of Cambodian SMEs and contribute to the country’s socio-economic development.

The SME Bank utilizes two key mechanisms to deliver this support: direct lending and co-financing partnerships with other financial institutions. In 2023, direct lending reached approximately $86 million, supporting 365 businesses – a remarkable 60% increase compared to 2022. Co-financing schemes, on the other hand, channeled $394 million to a staggering 3,095 enterprises.

The report acknowledges that challenges faced by SMEs extend beyond securing financing. Stakeholders, including public institutions, development partners, and the private sector, all have a vital role to play in addressing these broader issues.

Looking ahead, the SME Bank remains dedicated to empowering SMEs. Their focus lies on enhancing credit services by offering more flexible loan terms, reducing processing times, and tailoring loans to align with the Cambodian government’s priorities outlined in the Pentagon Strategy – Phase 1.

By providing essential financing and streamlining lending processes, the SME Bank plays a crucial role in enabling Cambodian businesses to thrive and contribute to the nation’s economic well-being.