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Priority Area: Rural Development - Providing opportunities for Cambodia's dynamic society

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Cambodia has experienced significant economic development over the past decades. We strive to ensure that rural, low income population is not left behind. We work where business performance is far below its potential, access to land and financial services is constrained and infrastructure is lacking. This is crucial for growth and poverty reduction for the rural population.

Germany supports agricultural diversification, rural entrepreneurship and improved productivity. Through better access to technical know-how and innovations, thousands of female and male rural entrepreneurs increase the volumes and the competitiveness of their products and access new markets. We foster better cooperation within value chains, promote public and private sector partnerships and the creation of business federations. All this adds to significant employment and income generation. These activities are backed by credit programmes for small and medium-sized businesses through local financial institutions.

Poor connectivity, high transport and energy costs are main constraints for rural development. We support Cambodia in building up its rural road network and countrywide electricity grid. Together with the Royal Government, we already financed 2,100 km of roads. This results in quicker and year-round access to markets, schools and health care for thousands of citizens. And 700 km of new transmission lines to villages have been built. By this, 25,000 families will benefit from cheaper and more stable electricity. With improved infrastructure rural households will have fewer burdens, less costs and thus more money available for their daily life.

As a party to the Oslo and Ottawa Conventions the Government of the Federal Republic of Germany has supported mine clearance and relevant capacity building activities in Cambodia in order to enable its socio-economic development since 1998. Total support channelled through local organisations so far amounts to almost 17 million EUR. In recent years the regional focus has been on the provinces of Oddar Meanchey and Siem Reap. Land releases following the mine clearance activities provide better opportunities for local populations to secure their livelihoods and open up opportunities for further development in the regions.

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