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Tag: SME Development

Credit Guarantee Corporation of Cambodia Launches $200M Stimulus Scheme Offering Up to 90% Loan Coverage for Businesses

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

The Credit Guarantee Corporation of Cambodia (CGCC) has officially launched a new USD 200 million “Economic Stimulus Guarantee Scheme” (ESGS), marking a significant milestone in the country’s post-pandemic financial recovery and private sector development efforts. Effective from July 1, 2025, ESGS replaces the earlier “Business Recovery Guarantee Scheme” (BRGS), which concluded on June 30, 2025.

Approved by H.E. Deputy Prime Minister and Minister of Economy and Finance, the new guarantee scheme is designed to boost access to finance for Micro, Small, and Medium Enterprises (MSMEs) as well as large firms, reinforcing the Royal Government of Cambodia’s Pentagon Strategy – Phase 1, which prioritizes economic diversification, job creation, and resilience.

Stronger Terms to Drive Loan Disbursement

One of the standout features of the ESGS is its enhanced guarantee terms. CGCC has increased the maximum guarantee coverage to 90% of the total loan principal, one of the highest ratios offered in the Cambodian market to date. The minimum guarantee fee has also been lowered to just 0.75% of the outstanding guaranteed amount, creating a more favorable cost environment for borrowers and lenders alike.

Read More: Guarantco and CGCC Sign Framework Agreement and First Transaction Together To Accelerate Sustainable Infrastructure Investment In Cambodia

These measures are aimed at encouraging Participating Financial Institutions (PFIs) to disburse more credit, especially to businesses with limited collateral or track records, while minimizing the risk exposure for lenders. Other improved conditions under ESGS are expected to attract a broader range of enterprises and stimulate economic activity across both urban and rural areas.

Focused Support for Key Sectors

The ESGS specifically targets businesses operating in priority sectors critical to Cambodia’s development. These include:

  • Agriculture: crop cultivation, livestock farming, aquaculture
  • Industry: agro-processing, food manufacturing, waste recycling, pharmaceutical production, and green technology
  • Services: tourism, logistics, digital services, education, utilities, and healthcare

Businesses outside these areas are still eligible, provided they do not fall under the officially designated “Negative List,” which outlines excluded sectors and loan purposes.

Eligible borrowers must be Cambodian citizens or majority Cambodian-owned legal entities (holding over 50% local ownership). Businesses that are not yet formally registered may still apply, but must complete registration within one year of receiving the guarantee. Otherwise, a business registration fee of 0.5% per annum will apply on the outstanding guaranteed amount.

Building on a Growing Track Record

The launch of ESGS comes as CGCC continues to expand its role in Cambodia’s financial system. As of the end of May 2025, CGCC had approved guarantees for 4,877 business loans, representing a total guaranteed amount of approximately USD 294.32 million.

CGCC, a state-owned enterprise under the technical and financial guidance of the Ministry of Economy and Finance, was established to enhance financial inclusion by reducing barriers to credit access. The corporation’s broader portfolio includes:

  • Loan guarantees in the banking and financial services sector
  • Bond guarantees in the securities market
  • The Entrepreneurship Program Initiative of CGCC (EPIC), which supports startup and SME development through tailored guarantees and advisory support

By rolling out ESGS, CGCC aims to further scale up these efforts and accelerate Cambodia’s journey toward a more inclusive, diversified, and resilient economy.

For more information about ESGS and eligibility criteria, visit www.cgcc.com.kh or contact CGCC directly at 023 722 123.

Credit To: Cambodia Investment Review, Published on 01 July 2025

 

Why is Kaizen Essential for Both Individuals and Organizations around the World?

Posted on by Sorn Chhorvyvatey

Kaizen is a Japanese term meaning “continuous improvement.” It focuses on making small, consistent changes over time to improve processes, eliminate waste, and enhance productivity and efficiency—often without the need for additional resources.Kaizen also promotes greater employee engagement, better teamwork, lower costs, standardized best practices, and long-term growth. It supports innovation, quality improvement, and customer satisfaction by empowering employees at all levels. By encouraging the active involvement of everyone from top management to frontline staff.  Kaizen fosters a culture of ongoing improvement and sustainable success.

To fully understand the concept of Kaizen, the following example is provided:

After having implemented Kaizen, the Bank reduces loan processing time from 7 days to 3 days with the same resources. A cross-functional team identified bottlenecks such as repetitive tasks and communication delays. The bank implemented a shared digital platform, standardized checklists, improved communication, and introduced brief daily meetings. These changes resulted in faster processing, increased customer satisfaction, enhanced teamwork, and increased productivity.

In accordance with consistently continuous improvement, the 5S of Kaizen are a set of principles used to create an organized, efficient, and effective work environment. They are:

1. Sort: Eliminate unnecessary items from the workspace. Keep only what is essential to the work process and remove anything that isn’t needed. For example, an office had cluttered desks, making it hard for employees to find important items and stay focused. However, after employees reviewed their desks, removed outdated documents, unnecessary supplies, and personal items. Only essential tools and materials were kept. As a result, the workspace became organized, making it easier to find items, reducing distractions, and boosting productivity and healthiness.

2. Set in Order: Arrange and organize tools, materials, and equipment so that they are easy to access and use. Everything should have its place. Example, the disorganized warehouse was causing delays in order fulfillment. After items were labeled and organized by usage frequency, and a color-coding system along with a digital inventory system were introduced, it resulted in faster item location, reduced search time, improved order fulfillment speed, and increased customer satisfaction.

3. Shine: Clean workspace and equipment regularly. Keeping the area tidy not only improves safety but also helps identify potential problems before they escalate. Example, dirty work area caused hidden equipment issues, decreased efficiency, and low workplace moral and discipline. By implementing daily cleaning, these issues are reduced, making it easier to detect problems early and maintain a productive, safe environment.

4. Standardize:  Establish procedures and standards for maintaining cleanliness and organization. This includes creating schedules and guidelines to ensure consistency. Example, family members often forgot daily tasks like taking out the trash, feeding pets, or turning off lights, leading to confusion and missed chores. However, a daily chore chart was created and displayed in a visible location. Tasks were clearly assigned to each family member with defined routines. This standardized system improved consistency, encouraged shared responsibility, and reduced missed chores.

5. Sustain: Cultivate a culture of discipline. Ensure that the 5s practices are consistently followed by all employees and continuously improved over time.  Example, the family cleaned their living room, but after a few days, things got messy again because no one kept up the habit. However, they made a rule: “Put things back after using them.” A reminder note was placed on the wall, and everyone followed the rule daily. The living room stayed clean and tidy.

These five steps are designed to establish a continuous cycle of improvement, fostering a culture where small, consistent changes are made over time. By applying these steps regularly, organizations can enhance productivity, innovation, eliminate inefficiencies, and create a more streamlined and effective work environment. This ongoing process not only leads to better results but also encourages employees to embrace innovation and actively contribute to the organization’s success.

In short, both individuals and organizations are encouraged to consistently apply Kaizen to enhance their quality of life and ensure sustainable growth. So, when will you begin implementing it?

Download in PDF: KAIZEN

 

CGCC participating in Mission to UNIDO’s Headquarter in Austria

Posted on by Sorn Chhorvyvatey

From 06 to 11 April 2025, Mr. No Lida, CEO of Credit Guarantee Corporation of Cambodia (CGCC), was invited by the United Nations Industrial Development Organization (UNIDO) to join a mission to the Headquarter of UNIDO in Vienna, Austria.

The purposes of this mission are to (1) share the progress of the Value Chain Investment Support Facility (ISF), including challenges and lessons learned (Equipment and Technical assistance), and (2) build capacity of CGCC to implement ISF and innovative finance, including ISF grant disbursement through meetings and guidance from with UNIDO HQ colleagues.

During this mission, Mr. No Lida had met and discussed with various UNIDO HQ teams, including the Islamic Finance Taskforce, the Procurement and Finance Division, the Agriculture Division, and the Innovative Finance Division, to discuss lessons learnt, ways to improve the ISF, and future collaboration opportunities.

Investment Support Facility (ISF) is a joint project under CAPFISH-Capture: Post-harvest Fisheries Development Project jointly implemented by the Fisheries Administration and UNIDO Cambodia, co-funded by the European Union, and having CGCC as a fund manager. CGCC has also launched the Post-Harvest Fisheries Guarantee Scheme (PFGS) to provide guarantees on loans under the ISF. As ​​of the end of March 2025, CGCC has approved credit guarantees to 12 enterprises, with the total guaranteed loan size equivalent to approximately USD 300,000 under this scheme.

Entrepreneurship Program Initiative of CGCC (EPIC 4)

Posted on by Sorn Chhorvyvatey

On 25 April 2025, in Kampong Cham province, Credit Guarantee Corporation of Cambodia (CGCC) and the Department of Industry, Science, Technology & Innovation Kampong Cham province, co-organized the EPIC 4 on “Bankable Business Plan for SMEs”, presided over by Mr. Poun Run, Chief of the Department of Industry, Science, Technology & Innovation Kampong Cham province, and with honorable presence of Mr. No Lida, CEO of CGCC, participated by trainees who are Micro, Small, and Medium (MSMEs), especially Private Water Operators in Kampong Cham and the various provinces, in total 75 participants, in which 28 are females.

Through the EPIC 4, trainees learnt about the training topic on “Bankable Business Plan for SMEs” shared by Ms. Chau Lonmolika,, who is the CEO and Founder of Cambodian Standard Development & Supply Co., Ltd., and BoD in charge of Commission Access to Finance of YEAC. After learning about the training topic, all participants also shared their experiences with each other through a group discussion forum on creating a one-page business plan (Business Plan Model Lean Canvas), which was an opportunity for participants to practice and receive constructive feedback from the trainers and guest speakers.

Moreover, trainees also learnt about “CGCC’s Credit Guarantee Mechanism to Support the Access to Formal Financing of MSMEs” through the presentation by Mr. Yun Phan, Director of Strategy and Business Development of CGCC. Mr. Yun Phan also shared the Utilities Development Guarantee Scheme (UDGS) f with private water operators, which will be officially launched very soon to support them.

In line with the CGCC credit guarantee mechanism, Mr. Taing Hokleng, Head of Retail SME of Maybank Cambodia, also discussed “Bank Loans Assessment and Guaranteed Loans/Financial Solutions for SMEs” and the financial solutions that Maybank could provide with private water operators.

Capacity-building is one of the priorities of CGCC in the mission of improving financial inclusion and developing SMEs in Cambodia. EPIC is the flagship entrepreneurs’ capacity-building program of CGCC that will provide training to MSMEs on relevant and practical topics for entrepreneurs in collaboration with related stakeholders/Participating Financial Institutions.

CGCC Provides $271M Loan Guarantees to SMEs

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $271 million for micro, small and medium-sized enterprises (MSMEs) as of February 2025 as their working capital for expansion.

“As of the end of February 2025, CGCC has approved 3,979 guaranteed accounts, amounting to $271.14 million,” CGCC said in a report issued last Thursday.

In February 2025, CGCC approved 547 guaranteed accounts, which is the highest number of guaranteed accounts approved in a month since CGCC started the credit guarantee services in 2021.

The outstanding guaranteed loan as of February was $156.69 million, while the outstanding guaranteed amount was $114.89 million, read the report.

There are 3,792 micro, small and medium enterprises (MSMEs) and 187 large businesses in Cambodia, the report said, adding that 1,834 of the businesses were women-owned.

No Lida, CEO of CGCC, said that credit guarantee mechanisms have helped in contributing to the potential MSMEs that need funds to expand their production chains.

“Small and medium-sized enterprises that have potential but lack collateral or a certain level of risk that banks and microfinance institutions cannot provide credit to, so the Cambodia government, through the CGCC, will step in to help guarantee the credit of small and medium-sized enterprises,” he said.

Through the Cambodian Credit Guarantee Corporation, which insures up to 80 percent of loans to small and medium-sized enterprises, the government expects that banks and microfinance institutions will be able to provide more loans according to the needs of small and medium-sized enterprises, he said.

The CGCC scheme involves participating financial institutions (PFIs) including state-run Agriculture and Rural Development Bank and SME Bank to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs. CGCC’s credit guarantee is instrumental in aiding MSMEs to obtain sufficient financing, enabling the enterprises to capitalize on investment opportunities, boost employment and increase income.

Credit to: Khmer Times, Published on 24 March 2025

 

Agreement Signing Ceremony on Post-Harvest Fisheries Guarantee Scheme Between CGCC and FTB Bank

Posted on by Sorn Chhorvyvatey

On 21 March 2025, Credit Guarantee Corporation of Cambodia (CGCC) and Foreign Trade Bank of Cambodia (FTB) co-organized an agreement signing ceremony on “Post-Harvest Fisheries Guarantee Scheme (PFGS)” with honourable attendance from Management and the team of CGCC, FTB, and representatives of United Nations Industrial Development Organization (UNIDO Cambodia), to announce the official expanded partnership in providing guaranteed loans by CGCC through FTB to post-harvest fishery businesses and relevant suppliers.

PFGS is developed as a scheme for the Value Chain Investment Support Facility (ISF), a joint project under CAPFISH-Capture: Post-harvest Fisheries Development Project, jointly implemented by the Fisheries Administration and the UNIDO Cambodia, co-funded by the European Union, and having CGCC as the fund manager. Post-harvest fisheries enterprises and relevant suppliers can apply for support from the ISF on Technical Assistance (TA) for upgrading business operations and improving food safety practices, ISF Grant funds to procure Eligible Equipment to introduce innovations and optimise the business operations, and business loans guaranteed by CGCC from Participating Financial Institutions (PFIs) of CGCC such as FTB that has entered in this agreement on PFGS with CGCC.

Mr. No Lida, Chief Executive Officer of CGCC, said, “CGCC is delighted to have FTB as a new Participating Financial Institution (PFI) in the Investment Support Facility (ISF) project. The participation of FTB will improve the efficient implementation of the ISF in response to the demand of post-harvest fishery enterprises for access to financing support and guaranteed loans necessary to increase the competitiveness, productivity, and standard of production of potential post-harvest fishery enterprises in Cambodia.

Mr. Dith Sochal, Chief Executive Officer of FTB Bank, said, “Our two institutions are committed to strengthening and expanding our collaboration with the shared goal of driving innovation, enhancing efficiency, and optimising business operations for enterprises in the post-harvest fisheries sector, domestic suppliers, and exporters to international markets. This agreement also reflects the strong partnership and active engagement between FTB and CGCC since 2021, with the expectation of successful and sustained comprehensive cooperation between the two institutions.”

Through this PFGS agreement, CGCC and FTB are committed to supporting post-harvest fishery enterprises and input suppliers in increasing productivity, improving food safety compliance and quality standards of fishery products, reaching new markets, including international markets, and improving businesses in a more efficient, sustainable, and inclusive way.

For post-harvest fisheries enterprises, apply for ISF now! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

Credit to: Khmer Times, Published on 21 March 2025

Agreement Signing Ceremony on Post-Harvest Fisheries Guarantee Scheme Between CGCC and FTB Bank

Posted on by Sorn Chhorvyvatey

On 21 March 2025, Credit Guarantee Corporation of Cambodia (CGCC) and Foreign Trade Bank of Cambodia (FTB) co-organized an agreement signing ceremony on “Post-Harvest Fisheries Guarantee Scheme (PFGS)” with honorable attendance from Management and team of CGCC, FTB, and representatives of United Nations Industrial Development Organization (UNIDO Cambodia), to announce the official expanded partnership in providing guaranteed loans by CGCC through FTB to post-harvest fishery businesses and relevant suppliers.

PFGS is developed as a scheme for the Value Chain Investment Support Facility (ISF), a joint project under CAPFISH-Capture: Post-harvest Fisheries Development Project, jointly implemented by the Fisheries Administration and the UNIDO Cambodia, co-funded by the European Union, and having CGCC as the fund manager.  Post-harvest fisheries enterprises and relevant suppliers can apply for support from the ISF on Technical Assistance (TA) for upgrading business operations and improving food safety practices, ISF Grant funds to procure Eligible Equipment to introduce innovations and optimize the business operations, and business loans guaranteed by CGCC from Participating Financial Institutions (PFIs) of CGCC such as FTB that has entered in this agreement on PFGS with CGCC.

Mr. No Lida, Chief Executive Officer of CGCC, said, “CGCC is delighted to have FTB as a​ new Participating Financial Institution (PFI) in the Investment Support Facility (ISF) project. The participation of FTB will improve the efficient implementation of the ISF in response to the demand of the post-harvest fishery enterprises for access to financing support and guaranteed loans necessary to increase competitiveness, productivity, and standard of production of the potential post-harvest fishery enterprises in Cambodia.”

Mr. Dith Sochal, Chief Executive Officer of FTB Bank said “Our two institutions are committed to strengthening and expanding our collaboration with the shared goal of driving innovation, enhancing efficiency, and optimizing business operations for enterprises in the post-harvest fisheries sector, domestic suppliers, and exporters to international markets. This agreement also reflects the strong partnership and active engagement between FTB and CGCC since 2021, with the expectation of successful and sustained comprehensive cooperation between the two institutions.”

Through this PFGS agreement, CGCC and FTB are committed to supporting post-harvest fishery enterprises and input suppliers in increasing productivity, improving food safety compliance and quality standards of fishery products, reaching new markets, including international markets, and improving businesses in a more efficient, sustainable, and inclusive way.

For post-harvest fisheries enterprises, apply for ISF now! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

 

About FTB: As the first commercial bank in Cambodia, a truly local bank trusted since 1979, FTB has played crucial roles in helping to promote and develop the local market and economy through relentlessly providing wide ranges of banking products and services to local customers. As of 2024, the total assets increased to US$2.28 Billion, total loan portfolio of US$ 1.34 Billion and total deposit of over US$ 1.93 Billion. FTB is committed to continually helping local customers to achieve further growth, prosperity and steadily forging ahead with the vision to be the preferred commercial bank in Cambodia.

 

About CGCC: CGCC is a state-owned enterprise established by the Sub-Decree of the Royal Government of Cambodia in September 2020 under the technical and financial guidance of the Ministry of Economy and Finance (MEF). CGCC’s main mission is to provide credit guarantees to improve financial inclusion and support the development of small and medium enterprises. As of the end of February 2025, CGCC approved 3,979 guaranteed accounts, amounting to 274.14 million USD equivalent.

 

 

CGCC, CAPFISH-Capture Expand Support for Fisheries Enterprises

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-Harvest Fisheries Development project have reached a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector.

According to a press release on Wednesday, the two organizations officially signed support agreements for 11 fish processing enterprises under the Investment Support Facility (ISF).

The ISF, a key initiative of the CAPFISH-Capture project funded by the European Union (EU), is administered by CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA).

This innovative financing scheme amounts to approximately $2.5 million, consisting of $1 million in grant funding (40 percent of the total investment) from the project for equipment support, $1.25 million (50 percent) in loans from participating financial institutions (PFIs) guaranteed by CGCC, and $250,000 (10 percent) contributed by the beneficiaries.

Since its launch in late 2024, the ISF has supported an initial group of 11 fish processing enterprises, with more expected to benefit from the program.

So far, the project has provided around $320,000 in initial grant funding, leveraging an additional $340,000 in CGCC-guaranteed loans from PFIs such as ACLEDA Bank and Maybank Cambodia, along with $580,000 contributed by the enterprises themselves.

The ISF primarily supports post-harvest fisheries enterprises seeking to enhance their operations and expand their market reach both nationally and internationally. The program places a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards.

The program offers tailored support, including business development assistance, market linkages, food safety compliance, and adherence to environmental and social safeguards.

Credit to: Khmer Times, Published on 27 February 2025

 

Investment Support Facility (ISF): CGCC, Participating Financial Institutions & EU-funded CAPFISH-Capture Team Up to Boost Investments in the Fisheries Sector

Posted on by Sorn Chhorvyvatey

Phnom Penh, 26 February 2025 – On February 21, 2025, the Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-harvest Fisheries Development project celebrated a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector. They officially signed support agreements for 11 fish processing enterprises as part of the Investment Support Facility (ISF).

The ISF, a key initiative under the CAPFISH-Capture project funded by the European Union (EU), is administered by the CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA). This innovative financing scheme totals approximately US$2.5 million, comprising US$1 million in grant funds (40% of total investment) from the project as equipment support, US$1.25 million (50%) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and US$250,000 (10%) contributed by the beneficiaries themselves.

Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support. The project has provided its initial grant funding of around US$320,000, leveraging an additional US$340,000 guaranteed loans from CGCC’s PFIs, such as ACLEDA Bank and Maybank Cambodia, along with US$580,000 from the enterprises themselves.

The ISF focuses primarily on supporting post-harvest fisheries enterprises eager to enhance their operations and expand their market reach, both nationally and internationally. There is a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, the CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards. Tailored support includes assistance with business development, market linkages, food safety compliance, and environmental and social safeguards.

For post-harvest fisheries enterprises, APPLY NOW! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH
Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH
Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH