Phnom Penh:The Asian Development Bank (ADB) has announced the approval of a $72 million financing package aimed at enhancing rural agriculture and boosting women's economic empowerment in Cambodia. This initiative seeks to improve the resilience of approximately 200,000 smallholder farmers in areas susceptible to natural disasters.
According to Agence Kampuchea Presse, the package includes a $57 million concessional loan and a $15 million grant from the Asian Development Fund. This funding is intended to assist countries in addressing current challenges while laying the groundwork for sustainable growth. The financing is further bolstered by $23 million from the Association of Southeast Asian Nations Infrastructure Fund, a $10 million grant from the Green Climate Fund, a $3 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific, and $4.3 million from the Cambodian government.
ADB Country Director for Cambodia, Ms. Yasmin Siddiqi, emphasized the importance of investing in smallholder farmers, particularly women, to stimulate the rural economy and support communities vulnerable to extreme weather. The project aims to enhance women's roles in local decision-making, scale up inclusive agricultural value chains, and bolster food systems, ultimately promoting women-led businesses and family resilience.
Cambodia's agriculture sector faces significant challenges from overlapping natural hazards such as heatwaves, drought, and flooding, which damage infrastructure and limit market access. Women, who make up 51% of the agricultural labor force, are particularly vulnerable due to limited access to economic opportunities and financing.
The Smallholder Resilient Economic Development Sector Project will target 186 communes across seven provinces. It includes modernizing irrigation systems for 7,000 additional hectares of farmland and rehabilitating 190 kilometers of roads to improve market access. Farmers will receive technical support and training in resilient agricultural practices, while grants will help reduce dependency on imported resources.
The project also focuses on community resilience planning by involving women and vulnerable groups in early-warning and disaster-response systems, promoting healthier diets, and managing disaster risks.