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Cambodia

The Cambodian economy, which started out from a low level, was growing very dynamically by 7% each year until the onset of the coronavirus crisis. It shrank slightly in 2020, but it returned to a growth trajectory as early as 2021. Nonetheless, Cambodia remains one of the poorest countries in Southeast Asia, and one of the least developed in the world.
On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW supports Cambodia in the context of financial cooperation (FC) with several programmes to improve healthcare and social security in the event of illness, to create employment opportunities in rural areas and to protect the environment with investments in energy efficiency.
Despite all the progress in healthcare provision too many mothers and babies still die in Cambodia. Every second birth still takes place at home, and one in every four births takes place without assistance from a doctor or a qualified midwife. Improving healthcare and nutrition for children and mothers is one of the priorities for KfW’s involvement in Cambodia.
Together with other donors and on behalf of the BMZ, KfW supports the Cambodian health reform programme and a food security programme through a type of financing known as basket funding. These measures primarily aim to improve the management and quality of healthcare services and increase access for vulnerable groups within the population. Likewise, chronic diseases pose a growing challenge for the country. More than 50% of deaths are caused by chronic, non-communicable diseases, primarily cardiovascular diseases, cancer and diabetes.
German support has helped to ensure that more and more poor people are now gaining access to healthcare services, and the quality of medical treatment is improving overall.
Project information - Health (PDF, 136 KB, non-accessible)
Cambodia’s economic structure still lacks diversification. Employment opportunities, especially in rural areas, tend to have a strong agricultural focus. Poverty also remains widespread here. Diversifying the economy requires significant efforts to, among other things, expand rural infrastructure and thereby improve the rural population’s access to employment, education, markets and social services. This is why KfW, on behalf of the BMZ, is financing investments in rural roads, bridges, local markets and other social facilities. These investments help to improve employment opportunities, and with that, improve the general economic and social circumstances of people in their catchment area in a range of ways.
Nowhere in Asia is electricity more expensive than in Cambodia. Furthermore, there are regular power cuts in rural areas and T&D losses are high. Both factors impede economic development and mean that the energy sector has a disproportionately harmful effect on the environment. This is why KfW, on behalf of the BMZ, is financing investments in more efficient use of electricity, especially in relation to electricity transmission in rural areas. This helps to increase the reliability of electricity supply and reduce T&D losses, thereby enabling additional house connections, reducing greenhouse gas emissions and thus contributing to climate change mitigation.
Further information
- Learn more about the impact of our work in Cambodia in our transparency portal
- Read more about our completed projects in the evaluation reports on Cambodia
- The BMZ's priorities in Cambodia can be found directly on the Ministry's website
- On the website of the Federal Foreign Office you will find detailed information about Cambodia
Local office
KfW Office Phnom Penh
Director KfW Office: Jenny Scharrer
6th floor, Unit 6C,
#146 Keystone Building,
Norodom Boulevard,
Sangkat Tonle Bassac,
Khan Chamkarmon,
Phnom Penh
Cambodia
Phone: +855 (23) 223 089 / 213 968
Fax: +855 (23) 215 443