The Ministry of Agriculture, Forestry and Fisheries and Wing Bank (Cambodia) Plc have announced the signing of a memorandum of understanding (MoU) aimed at bolstering agricultural development in the Kingdom.
The partnership will facilitate accessible, low-interest loans to support the government’s Agriculture Priority policies, leveraging the innovative Wingagri supply chain platform designed to bolster the sector.
Agriculture minister Dith Tina and Kith Meng, chairman of Wing Bank, formalised the MoU on November 14 at the ministry’s headquarters in Phnom Penh.
According to a joint press release, the agreement will enable Wing to offer affordable loans to agricultural businesses identified by the ministry. The objective is to address the long-standing financing challenges in agricultural production chains, thereby enhancing the financial capabilities of these businesses.
The support is expected to help maximize production and meet the increasing demand.
“This partnership with Wing Bank is a significant milestone for [the ministry] as it allows us to strengthen our support for the agricultural sector providing much-needed financial solutions and expanding market access for farmers and agricultural businesses across Cambodia,” Tina stated.
He also encouraged other financial institutions to follow Wing’s example in supporting farmers.
Through the collaboration, Agri-Small and Medium-sized Enterprises (Agri-SMEs) can utilise the advanced Wingagri digital platform, a centralized digital hub for the agricultural sector. The application facilitates seamless management of the supply chain and provides sophisticated financing solutions to various stakeholders, including agricultural cooperatives, buyers, input suppliers and farmers, as per the press release.
“We strongly believe that financial inclusion is a crucial component for driving economic growth and prosperity at the moment. To best meet the needs of our Agri-SMEs, we have tailored our financial services accordingly,” Meng said. “I am very thankful to the ministry for placing their trust in our financial solutions”.
The ministry reports that the country’s agricultural sector achieved a significant milestone in 2022, with formal exports of products reaching 8.6 million tonnes across 74 markets with a total export value of nearly $5 billion.
This represents 22.2 per cent of the Kingdom’s gross domestic product (GDP) for 2022, and a growth of 7.8 per cent from 2021, as per the ministry.