Aid

France to Provide Financial Aid for Cambodia’s Post-Pandemic Recovery

France has committed to continue providing Cambodia with financial aid of between 100 and 120 million euros annually to aid post-pandemic recovery
French and Cambodian officials meet at the Ministry of Economy and Finance in Phnom Penh. Kiripost via the ministry
French and Cambodian officials meet at the Ministry of Economy and Finance in Phnom Penh. Kiripost via the ministry

By Klaing Kimhouy

The French government will maintain financial aid of 100 to 120 million euros in annual concessional loans to contribute to Cambodia’s post-pandemic development and recovery.

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Aun Porn Moniroth, Minister of Economy and Finance, said that despite Cambodia achieving great success in the Covid-19 crisis and having opened the country in all fields to restore economic growth, it continues to face other crisis, including high inflation and interest rates, the economic slowdown in developed countries and China, the war in Ukraine and regional and international geopolitical issues which have negatively impacted Cambodia's recovery and economic growth, as well as the entire global economy.

“The government will continue to improve structural reforms by focusing on priorities, such as logistics, energy, skills, digital [development], small and medium enterprises, and trade facilitation,” Moniroth said.

The annual financial aid will focus on three main goals of development that combine climate change and reducing carbon emissions, gaining more jobs and economic growth, and sustainable infrastructure development with good governance.

Am Sam Ath, Operations Director at LICADHO, said that France is one of the European Union countries that has always helped Cambodia. Their grants may have some conditions, especially if they want to see Cambodia restore democracy and respect human rights.

"Helping Cambodia develop is one of the things, but in order to develop, Cambodia must adhere to democracy and better respect human rights", Sam Ath said.

In the last 30 years through AFD, the French republic has provided a total of 888 million euros in financial aid to Cambodia, including 533 million in concessional loans and 178 million in grants. That financial aid focuses on infrastructure development, such as rural roads, irrigation, agriculture, clean water, electricity, education, and health.

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