Share the page
Cambodia: strengthening financial inclusion for women entrepreneurs in rural areas
Project
-
Signature date
-
-
Location
-
Cambodia
-
Financing tool
-
Financing amount (Euro)
-
17248814
-
Financing details
-
USD 20m loan
-
Customer
-
LOLC (Cambodia) Plc
-
Type of customer
-
Microfinance
-
Country of headquarters
-
Cambodia
-
Project number
-
PKH1052
-
Environmental and social ranking
-
IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
By allocating a credit line to the microfinance institution LOLC Cambodia, Proparco is supporting its objective of developing its loan portfolio, especially for women entrepreneurs in Cambodia’s rural areas.
Client presentation
LOLC Cambodia (LOLC) is a microfinance (MFI) which started its operations in 1994. It is today Cambodia’s 3rd largest MFI by the number of clients served and the size of its loan portfolio. LOLC was certified Smart Campaign in July 2016 and mainly targets the low-end market segment with a strong presence in rural areas. LOLC serves over 730,000 clients (including some 306,000 borrowers) via a network of 79 retail outlets and 1,550 officers. The majority of its clients are women (70%) in rural areas (93%).
Project description
The project involves the allocation of a USD 20m senior credit line to LOLC Cambodia to support the development of its loan portfolio, especially for women entrepreneurs.
Women account for 50% of senior management in the institution: in this respect, the project qualifies for the 2X Challenge initiative.
Project impact
The main expected impacts of this project are:
- 11,800 jobs maintained from now until 2025,
- An improvement in access to micro-loans: PROPARCO’s financing should allow an additional 6,850 clients to benefit from a micro-loan,
- A contribution to women’s entrepreneurship through the allocation of micro-loans to women, who account for about 70% of active borrowers and are mainly in rural areas.