Savings-led and Self-help Microfinance in Cambodia: Lessons Learned and Best Practices

This study was commissioned by Pact Cambodia with the following objectives:

• To analyze three existing programs in Cambodia and draw out lessons learned and best practices for WORTH's design.
• To assess the current state of microfinance in Cambodia and the shortfalls in meeting demand.

The study examines the microfinance environment in Cambodia and:

• Describes Pact's WORTH model and how its methodologies differ in Cambodia as compared to the global microfinance industry.
• Presents findings, lessons learned and best practices from the Cambodian programs studied for this research.

The paper concludes that

• Despite rapid expansion in the past decade, the Cambodian microfinance sector continues to be characterized by substantial unmet demand and gaps in service.
• The leading microfinance institutions are facing real challenges in lowering their operational costs so as to reach new segments of the population; they are also dependent on donor funds.

The paper recommends that the WORTH initiative offers a way to reach more of the unbanked poor via a low-cost, savings-led model packaged with complimentary services including literacy, business training and empowerment of rural Cambodian women.