Phnom Penh (FN), Mar. 14 – EIB Global – the European Investment Bank’s global arm – and the Ministry of Economy and Finance (MEF) of the Kingdom of Cambodia have signed an agreement today for a €15 million EU grant to support the Agriculture Services Programme for an Inclusive Rural Economy and Agricultural Trade (ASPIRE-AT). A key priority for the Cambodian government, ASPIRE-AT aims to modernise the agricultural sector, enhance food security and strengthen export potential. This grant supplements a €60 million loan from EIB Global and €4.5 million of support from the European Union for technical assistance, which will be implemented by the European Investment Bank (EIB). This brings the total of EU-backed investment in the programme to nearly €80 million. The International Fund for Agricultural Development (IFAD), the UN’s rural development agency, is co-financing the programme with $49 million.
The agreement was signed in Phnom Penh by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth and EIB Vice-President Nicola Beer during her first visit to Cambodia as the EIB Vice-President responsible for Southeast Asia. The signing took place in the presence of EU Ambassador to Cambodia Igor Driesmans and Country Director for Cambodia at the International Fund for Agricultural Development (IFAD) Frew Behabtu.
The EU financing will help modernise Cambodia’s agricultural sector, equipping smallholder farmers, agribusinesses and producer organisations with tools and infrastructure to boost production, provide access to new markets, and improve food safety. The project will directly benefit 100 000 smallholder farmers and 25 000 land-poor households, creating new income opportunities – particularly in rural areas – with a strong focus on empowering women, engaging young people and supporting indigenous communities.
EIB Vice-President Nicola Beer said: “The European Investment Bank is proud to support ASPIRE-AT and Cambodia’s agricultural sector, which plays a vital role in the country’s economy and food security. With this financing, we are helping the government to strengthen food security, increase farmers’ incomes, and open up new market opportunities for Cambodian products. It is a great example of how Team Europe delivers real impact, creating jobs, driving trade, and strengthening Cambodia’s economy.”
Ambassador of the European Union to the Kingdom of Cambodia Igor Driesmans said: “I am proud to be part of this important agricultural investment project by partnering with our European Investment Bank and IFAD under the European Union Global Gateway and our Team Europe initiatives. Our support of €19.5 million (USD 21.06 million) in grants will help farmers and their communities improve primary production, processing capabilities and market access through capacity building and access to financing, agricultural laboratory support, and better rural and urban connectivity. Together, we are helping the sector to become more inclusive and resilient, benefiting all Cambodians, and especially those in rural communities.”
Deputy Prime Minister and Minister of Economy and Finance (MEF) Aun Pornmoniroth expressed his deep appreciation to the EIB, the European Union and to IFAD for their support and cooperation in successfully designing and preparing the ASPIRE-AT programme. He reiterated that the agreement signed today for the ASPIRE-AT programme is a testament to the increased and closer cooperation between the Government of the Kingdom of Cambodia and the EIB, the European Union and IFAD, as well as to the unwavering support of key development partners in the reform agenda of the government’s Pentagonal Strategy (Phase I), as Cambodia aims to achieve its goal of becoming an upper-middle-income country in 2030 and a high-income country in 2050. In this spirit, the Government of the Kingdom of Cambodia reaffirmed its commitment to fostering and strengthening future partnerships with the EIB, the European Union and IFAD across multifaceted sectors.
International Fund for Agricultural Development (IFAD) Country Director for Cambodia Frew Behabtu said: “This significant EU grant, alongside the EIB loan and IFAD's co-financing, marks a powerful step towards transforming Cambodia's agricultural sector. IFAD is proud to be part of this collaborative effort to empower rural communities, enhance food security, and unlock the export potential that drives sustainable economic growth.”
This investment will strengthen Cambodia’s agricultural infrastructure and market connectivity, supporting collection and handling facilities, warehouses, drying pads, and access roads to improve bulk produce transport. It will also fund the Kaoh Khsach Tonlea bridge, linking the island to the mainland to enhance market access and pilot a new agricultural cooperative model. Additionally, the financing will improve food safety and quality control by supporting laboratories, research and quarantine stations and the expansion of the National Agricultural Laboratory. These investments are strategically distributed across a range of locations in Cambodia, ensuring that they have a broad geographic impact and enable greater integration into regional and global markets.
About EIB Global
EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices around the world.
About the EIB in Cambodia
Since 2018, EIB Global has been a key partner in Cambodia’s sustainable development, investing €310 million across various sectors, including in water and agriculture, as well as to rehabilitate rural roads. In close collaboration with the Delegation of the European Union to the Kingdom of Cambodia, the Royal Government of Cambodia, and other development partners, the EIB supports projects that foster economic growth, enhance environmental sustainability, and improve living standards. The Bank’s investments focus on clean water access, rural infrastructure, climate-resilient agriculture and food security. These initiatives have expanded irrigation systems, upgraded rural roads, and strengthened agricultural value chains, directly benefiting millions of Cambodians by creating new economic opportunities and building resilience in local communities.
The Agriculture Services Programme for an Inclusive Rural Economy and Agricultural Trade (ASPIRE-AT) is an initiative of the Cambodian government – implemented by the Ministry of Agriculture, Forestry, and Fisheries (MAFF) – that is aimed at reducing rural poverty and enhancing climate resilience in Cambodian households. Building on the success of the previous ASPIRE programme (2015-2022), ASPIRE-AT focuses on sustainable agricultural growth by providing small-scale producers with productive assets, fostering business partnerships, and improving market access. The programme targets 125 000 rural households, emphasising inclusivity with at least 50% of beneficiaries being women, 20% young people and 1.5% indigenous people.
The International Fund for Agricultural Development (IFAD) is an international financial institution and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than USD25 billion in grants and low-interest loans to fund projects in developing countries.
=FRESH NEWS
