Amret (2022)

Amret is the second-largest microfinance and a leading financial institution in Cambodia. It leverages on a well-developed network of over 150 branches and over 4000 employees spread all over the Country to address the needs of more than 300’000 active borrowers, mostly composed of micro and small entrepreneurs located in underserved rural areas. Amret is an existing partner of SIFEM since 2017. SIFEM provides a USD 15 million subordinated debt facility earmarked for MSMEs (micro, small and medium enterprises) to create employment and income opportunities for young people, women, and other disadvantaged groups of the population.

While Cambodia has made substantial strides over the last two decades, achieving lower-middle-income status in 2015, it was severally hit by the pandemic. It impacted key sectors, namely tourism, exports, and construction which together accounted for 70% of growth and 39% of total paid employment in 2019. As a result, nearly half of households reported having experienced declines in income and the poverty rate is estimated to have increased to 17.8%.

MSMEs play a significant role in the local economy as they account for over 70% of employment, 99.8% of enterprises, and 58% of GDP. Amret is a very robust institution with a long solid track-record and well positioned to provide financial services to MSMEs helping them to overcome the current challenges and get back on the growth path. It also contributes strongly to economic and social inclusion having a focus on lower-income borrowers and financially under-served segments of the population, especially women and young entrepreneurs in rural areas.

The USD 15m subordinate load benefits from a 30% loss guarantee provided by SDC (Swiss Agency for Development and Cooperation) as Cambodia belongs to the least developed countries and the loan is earmarked for MSMEs hence creating a positive impact on the financial inclusion of underserved groups and job creation.