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Cambodian Women Entrepreneurs Seek Easier Access to $20 Million Green Fund

Prime Highlights

  • Cambodia has launched a $20 million green financing programme to help SMEs invest in energy-efficient technologies. 
  • Women entrepreneurs have called for simpler loan procedures and more flexible eligibility rules to improve access to the fund. 

Key Facts

  • The Energy Efficiency Revolving Fund (EERF) is backed by the Asian Development Bank, the Cambodian government and development partners to support green investments by SMEs. 
  • The programme aims for at least 30% of supported businesses to be women-owned or women-led. 

Background

Women entrepreneurs in Cambodia have welcomed the launch of a $20 million Energy Efficiency Revolving Fund (EERF) but have urged lenders to simplify loan requirements so more women-led businesses can benefit from the programme. 

Supported by the Asian Development Bank (ADB), the Royal Government of Cambodia and development partners, the fund aims to help small and medium-sized enterprises (SMEs) invest in energy-efficient machinery, renewable energy systems and modern equipment. At least 30% of supported businesses are expected to be women-owned or women-led. 

The Cambodia Women Entrepreneurs Association (CWEA) said the initiative could improve access to finance, one of the biggest challenges facing women entrepreneurs. However, the association noted that strict collateral requirements, complex application procedures and eligibility rules may prevent many businesses from accessing the funding. 

Deputy President You Bory said many family-run businesses are legally registered in a husband’s name even though women manage daily operations. She said such businesses may fail to qualify under current ownership criteria despite being effectively led by women. 

The association also highlighted challenges faced by single and divorced women, who often face additional lending requirements. It added that high upfront costs for energy-efficient technologies discourage many small businesses from investing despite the long-term savings. 

Programme officials said the initiative combines financing with technical assistance and credit guarantees to improve access to green finance. The scheme will initially operate through SME Bank of Cambodia, CIMB Bank PLC and Foreign Trade Bank (FTB), with the Credit Guarantee Corporation of Cambodia (CGCC) providing optional partial credit guarantees to participating banks.