Boosting entrepreneurship in low-income Cambodia and Laos

Many small and medium-sized companies in low-income countries Cambodia and Laos see excellent opportunities to grow. However, they are often constrained by a lack of access to additional investment capital and management expertise. The Cambodia Laos Development Fund, a private equity fund focusing on SMEs, supports these companies, providing financing and know-how.

FMO invested in this new fund in 2011. Our investment, along with that of other development finance institutions, helped the fund reach a viable size of around US $20 million, enabling it to start facilitating growth of SMEs.

Many of these companies operate in agribusiness and the food and water sectors. With FMO's support, the Cambodia Laos Development Fund will target 25% of its investments at these sectors. The fund will also focus on the financial services sector, education, business services, tourism and light manufacturing.

Through its investment in this fund, FMO contributes substantially to the development of the private equity market in Cambodia and Laos. SMEs are expected to play a major role in boosting economic growth in the two countries.

Facts

EDIS: 73
Sector: Private equity fund
Region: Asia
Investment: US $4 million, contracted in June/July 2011