Your SlideShare is downloading. ×
Part ii rural and agricultural finance   partnerships in poverty alleviation and sustainable development lim aun
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Part ii rural and agricultural finance partnerships in poverty alleviation and sustainable development lim aun


Published on

Published in: Economy & Finance, Technology

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Cambodian Microfinance in Agriculture Issues and Challenges 1
  • 2. Cambodian Microfinance Introduction Operation Department 2
  • 3. Cambodia Demographic and Microfinance Industrial Data – June 2013: Population: +14 millions  Estimated population below poverty line: 20%  Rural population: about 11 Millions  Number of MFIs: 37  Loan outstanding: USD 1,088 Millions  Deposit balance: USD 378 Millions  Number of active MFI borrowers: 1,398,056  Number of active depositors: 969,523  Operation Department 3
  • 4. Distribution Network Year Sathapana Makes Your Life Better No of branch No of staff 2013(E) 75 1,897 2012 65 1,710 4
  • 5. Phases of Microfinance Development    1990 – 1995: Start-up Phase 1995 – 1999: Government-Supported Institutionalization 1999 – Present: Commercialization and Consolidation 5
  • 6. Business Nature   In early stage, MFIs in Cambodia have shared more or less similar mission and vision brought from their former status of NGO to licensed and registered MFIs. The main theme of their mission and vision have been driven and dedicated to social and economic development in rural area whereby it serves as a contributing factor for the Government’s goal of poverty alleviation. Operation Department 6
  • 7. Microfinance Operators Microfinance Operators Items 2008 2009 2010 2011 2012 June-2013 Number of Licensed MFIs 17 20 22 28 35 37 CMA members 17 20 22 MFIs & 1 28 MFIs & 2 33 MFIs & 2 35 MFIs & 5 NGOs NGOs NGOs NGOs 7
  • 8. Cambodian Microfinance Issues and Challenges Operation Department 8
  • 9.      Legal Framework limiting the ability of MFIs to diversify products and services. High Cost of Fund - High cost of fund prevents MFIs from achieving their potential in helping to develop the rural economy as well as the country as a whole. Multiple Loans - The prevalent of multiple lending, whereby an individual has taken out loans from more than one MFIs, has reached a strenuous point. Lack of a thorough credit assessment as many farmers don´t have a credit history, no bank accounts, and insufficient financial management capacity of the farmers. Multiple land titles – Multiple land titles for the same land lot to villagers continue to be issued and duplicates are provided as collateral for loans to multiple MFIs. 9
  • 10.  High transaction costs due to geographical dispersion of clients and poor infrastructure.  Staffing Issue - Difficulties in finding, hiring and keeping well trained staff who is willing to work in a rural region.   Absent of Risk Transferring Tools – Both agriculture guarantee and credit insurance yet to be implemented to address production risks faced by famers as well as credit risks faced by Financial Institutions. Oversaturation - Some regions are experiencing an oversaturation of MFIs, with the ration of MFIs to population having reached a point where MFIs are facing increasingly unfair competition. 10
  • 11. And Finally ……..   For MFIs to achieve their potential to serve more clients, they need to be able to offer a wider range of products and services, and to reduce their cost of funds so as to remain commercially sustainable, while serving the lower end of the market. Providing a legal framework that would enable MFIs to offer more products and services would help generate further growth in the sector, and to improve access to finance for many more Cambodians. 11
  • 12. Thank You for Your Kind Attention 12