Priority area Regional Economic Development Promoting the local economy

Around three quarters of Cambodians live in the countryside. Although poverty has been significantly reduced in recent years, poverty levels are still above average in rural areas. The aim of development cooperation activities in the priority area "Regional Economic Development" is to promote the local economy in order to reduce poverty, raise incomes and secure adequate nutrition.

A woman learns to operate a loom.

A woman learns to operate a loom. The GIZ-supported Women's Development Centre in Siem Reap is designed to give women the opportunity to learn a trade in order to build up their own economic existence.

A woman learns to operate a loom. The GIZ-supported Women's Development Centre in Siem Reap is designed to give women the opportunity to learn a trade in order to build up their own economic existence.

With Germany’s help, over 2,500 kilometres of access roads have been repaired or newly built. These roads ensure that people living in rural areas have access to larger towns and cities, especially in the difficult rainy season. Good road access is important so that people can get to health centres, schools and markets.

New dialogue formats for interaction between farmers, local authority representatives and the business community are intended to help better recognise and make use of existing economic potential.

Business training teaches poorer and disadvantaged people in particular about important aspects of agriculture. German development cooperation activities here involve working with travel companies and guides on ways to ensure that the people living in the vicinity of the Angkor temples benefit, too, from the tourists who visit. At the same time the tourists also learn more about how people in Cambodia live.

Through its development cooperation Germany is supporting efforts to help poor landless Cambodians acquire land rights to social land provided by the state. Furthermore, farmers are being offered know-how and assistance, for example with regard to preparing the ground for planting and improving the soil. In order to make sure that fields and markets can be accessed, infrastructure development is being supported through German development cooperation. As a result, food security has been ensured for almost 4,000 households.

Furthermore, via partner banks, KfW Development Bank is granting loans for micro, small and medium-sized enterprises in rural areas so that they can make new investments.