PHNOM PENH, Nov. 27 (Xinhua) -- The Asian Development Bank (ADB) said Friday that it has approved 70 million U.S. dollars in loans for Cambodia to improve the capacity of local agribusinesses.
The loans for Cambodia will be used to support initiatives to strengthen food safety and quality across the value chains for cassava, cashews, mangoes, vegetables, and native chickens, it said in a statement.
The Agricultural Value Chain Competitiveness and Safety Enhancement Project aims to benefit about 230 agricultural cooperatives and 50 agribusinesses in the Cambodian provinces of Kampong Cham, Kampong Thom, Oddar Meanchey, Preah Vihear, Siem Reap, and Tboung Khmum.
"Agriculture can contribute to Cambodia's economic growth and diversification if local small and medium-sized agribusinesses can improve their ability to process high-value agricultural products and market them domestically and overseas," said ADB principal natural Resources and agriculture economist Takeshi Ueda.
"Private investment in agriculture, along with better access to credit and high-quality raw agricultural products, will help Cambodian agribusinesses unleash their growth potential, create jobs, and improve rural livelihoods," he added.
With 76 percent of Cambodia's population living in rural areas, agriculture accounted for 20.7 percent of its gross domestic product (GDP) and 31.2 percent of total employment in 2019, the statement said.
The industry grew by an annual average of 1.7 percent from 2010 to 2019, it said, adding that processed agro-based goods now account for just 4 percent of GDP, due to the lack of diverse, value-added products.
The ADB said the COVID-19 pandemic has disrupted agricultural supply chains and reduced incomes and market opportunities for Cambodian farmers and agribusinesses.
For Cambodia, the loan project will facilitate access to credit for agriculture and agribusinesses, help adopt good agricultural practices and upgrade food-safety testing laboratories to gain international accreditation, according to the bank. Enditem
