- Posted on: February 9, 2024
New opportunities for EU companies to receive financing in Cambodia
Since 2024, the program formerly known as AfricaConnect has been extended globally and now also encompasses developing and emerging countries in Asia under the new name ImpactConnect. Financed by the German Federal Ministry for Economic Cooperation and Development (BMZ), it provides German and European companies with attractive loans for investment projects that have an impact on development in these economies, including Cambodia. ImpactConnect is implemented by the German Investment Corporation DEG (Deutsche Investitions- und Entwicklungsgesellschaft).
The program is particularly interesting for established EU companies seeking co-financing for establishing a subsidiary in a BMZ partner country such as Cambodia, as well as those looking to successfully operate and expand a subsidiary in these partner countries.
Attractive investment financing conditions at a glance:
- Loans in all target countries in euros, US dollars and local currencies
- Terms ranging between 3 and 7 years, with optional grace period
- Loans from EUR 750,000 to EUR 5 million (generally unsecured)
- Interest rate reductions for investments with a particularly transformative impact
- Direct disbursement to the subsidiary in the target country
- Risk-adequate equity contribution of 20% to 50% – equity already contributed can be factored in
- Support in implementing international environmental and social standards
- Access to DEG’s network and their wide-ranging expertise in developing and emerging-market countries based on more than 60 years of experience
ImpactConnect focuses on four further socio-ecological areas. Companies that go beyond country and sector standards in these areas and successfully implement jointly agreed objectives may receive more favourable interest rates. The applicable areas are the following:
- Better jobs (Living wage, certified working conditions)
- Female empowerment (Female founders/owners/managers, fair conditions)
- Fair and sustainable supply chains (quality label, supply chain initiatives)
- Reduction of the carbon footprint (CO2 reduction targets, renewable energies, construction measures)
Interest rate reductions of up to 100 basis points (bp) may be granted per impact category. The interest rate can be reduced by an overall maximum of 200 bp. The reduction is not granted retrospectively, but after the defined targets have been achieved.
Financing in Cambodia is possible if
- a subsidiary of an established European company is already active in Cambodia or if the European company is planning to enter the Cambodian market
- the company is sustainably profitable and can service the loan through its operating business
- the investment adds value from a development policy perspective, e.g. by creating jobs
For more information please refer to the ImpactConnect website (link).