Microfinance ‘powering’ economic growth, SDGs

Microfinance ‘powering’ economic growth, SDGs


The Cambodia Microfinance Association (CMA) said the sector is advancing towards sustainable development goals (SDGs), enhancing the country’s economic growth by enabling low-income households to obtain loans from microfinance institutions (MFIs). This, it said, has contributed to poverty alleviation, business growth and decent employment.

The assertion followed a study conducted by the association on the transformative effect of microfinance, carried out by Micro-Credit Ratings International Ltd (M-CRIL), an independent multi-national analytics firm.

The study highlighted that the sector is a potent economic driver and a significant force in achieving SDGs.

M-CRIL’s research delved into the sector’s impact on the country’s socio-economic landscape, showcasing its accomplishments, challenges and contributions to specific SDGs, as per a January 19 press release from the CMA.

In the press release, CMA chair Sok Voeun said the report reaffirmed the sector’s role in fostering economic empowerment and social advancement.

“The microfinance sector’s … impact is not merely economic but also extends into the social fabric of Cambodia. As the CMA, we are committed to using these insights to continuously improve the sector’s positive influence on our society,” he said.

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Reporter: Van Socheata

Publication date: 22 January 2024

Source: The Phnom Penh Post