In a landmark move aimed at bolstering Cambodia's rice industry, the state-owned Credit Guarantee Corporation of Cambodia (CGCC), the Ca...
In a landmark move aimed at bolstering Cambodia's rice industry, the state-owned Credit Guarantee Corporation of Cambodia (CGCC), the Cambodia Rice Federation (CRF), and several financial institutions have inked a groundbreaking agreement. The $30 million Rice Export Guarantee Scheme (REGS) seeks to support rice millers in stockpiling rice for milling, processing, exporting, and creating local value-added products.
Last Friday witnessed a significant milestone as representatives from the Ministry of Economy and Finance, the CGCC's Board of Directors, and key figures from the CRF, participating financial institutions, and CGCC management gathered for the official signing ceremony of the REGS agreement.
The REGS initiative, conceived as a portfolio guarantee scheme, boasts the participation of seven prominent financial institutions. Notable names include AMK Microfinance Institution, Canadia Bank, and the Foreign Trade Bank of Cambodia (FTB). This collaboration aims to alleviate the financing constraints faced by rice exporters and millers, particularly during the crucial harvest season.
Ros Seilava, Secretary of State of the Ministry of Economy and Finance, expressed the government's unwavering dedication to bolstering Cambodian rice production and exports. Highlighting CGCC's pivotal role as the scheme operator, Seilava emphasized the government's guarantee coverage of up to 80 percent, with a maximum loan limit of $3 million.
CRF President, Chan Sokheang, hailed the rice credit guarantee package as a catalyst for industry expansion. He noted its potential to facilitate diversification into sectors such as aquaculture and livestock farming. With ambitious targets set by the Royal Government to reach one million tonnes of exports annually by 2025, Sokheang expressed confidence in achieving this goal.
CGCC CEO, Wong Keet Loong, underscored the scheme's unique features, including lower guarantee fees and higher guarantee covers. With an eye on the government's export target, Loong affirmed CGCC's commitment to supporting these aspirations. He hinted at the scheme's scalability to meet rising demand effectively.
Recent data from a CRF report revealed promising export figures for Cambodia's rice sector. In the first four months of 2024 alone, the country exported over 248,000 tonnes of milled rice, generating revenue exceeding $170 million. The exported varieties ranged from fragrant and white rice to parboiled and organic rice, showcasing the industry's diversity and potential.
In a strategic move poised to reshape Cambodia's agricultural landscape, the REGS initiative stands as a testament to collaborative efforts between government bodies, financial institutions, and industry stakeholders. With a focus on empowerment, innovation, and sustainability, this partnership signals a bright future for Cambodia's rice exports on the global stage.
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