MicroVest has invested $6.5 million in LOLC Cambodia, one of the largest regulated microfinance institutions (MFI) in Cambodia. The investment seeks to facilitate responsible financing for underserved individuals and MSMEs in Cambodia, while helping LOLC meet growing demand for capital from its core borrower base, the majority of whom are women. Today, MSMEs account for up to 99% of total enterprises in Cambodia, which makes them vital to the country’s overall economy (UNESCAP 2019). However, an estimated 66% of those enterprises cite challenges around access to finance and working capital.
Founded in 1994, LOLC Cambodia is an MFI that serves Cambodian microentrepreneurs, primarily women, at the base of the socio-economic pyramid. While the company focuses primarily on individual lending in rural areas, its other products include deposits, SME loans, and asset-backed loans. LOLC complies with the Cambodian Microfinance Association lending guidelines’ limits on high-risk refinancing and became SMART Campaign-certified in 2019.
This is MicroVest’s 6th loan cycle with LOLC Cambodia.