Cambodia Investment Review
The 24th edition of Give a Day, held on September 18, 2024, brought together key players from Cambodia’s impact investment and entrepreneurial ecosystem to discuss the opportunities, challenges, and future of impact investing in the country. The event, co-hosted with Cambodia National Advisory Board for Impact (Cambodia-NAB) of GSG Impact, focused on fostering collaboration and knowledge sharing to strengthen Cambodia’s growing ecosystem for sustainable investment.
With a focus on building trust among ecosystem actors, the event drew participants from various sectors, including investors, entrepreneurs, and support organizations, all with the shared goal of enhancing the quality of support for Cambodian entrepreneurs.
Read More: Give a Day 23: Cambodia’s Entrepreneurial Ecosystem Roadmap Consultation Workshop
Key Discussions on Cambodia’s Impact Investing Ecosystem
The day’s highlight was the panel discussion, “Thriving Cambodia’s Impact Investing Ecosystem,” featuring a diverse group of industry leaders. Panelists included:
- Ms. Vuthy Chea, Regional Director of Incofin
- Ms. Cecile Dahome, Executive Director of Sevea Consulting and Country Coordinator of the Private Financing Advisory Network (PFAN)
- Ms. Laura Alsenas, Executive Director of Nexus for Development
- Mr. Parth Borkotoky, Founder and CEO of Azaylla
- Ms. Ratana Phurik-Callebaut, a Private Sector Development Specialist (moderator)
Ms. Vuthy Chea of Incofin emphasized Cambodia’s potential to become a hub for impact investment, especially in sectors like financial inclusion, sustainable agriculture, and safe drinking water. Incofin, a Belgium-based impact investor, focuses on supporting marginalized groups such as smallholder farmers. “The opportunities are here, but Cambodia still needs to develop a clear strategy to attract a more diverse range of impact investors,” Ms. Chea noted.
Ms. Cecile Dahome from Sevea Consulting added that one of the key barriers to growing the impact investment ecosystem is the cost associated with measuring impact. “Businesses want to do good, but without proper impact measurement tools, it’s difficult for them to demonstrate their contributions to social and environmental goals, which is critical for attracting impact investors,” she stated. Dahome stressed the importance of making this commitment despite the financial burden, as it builds credibility and investor trust.
Nexus for Development: Targeting Underserved SMEs
Ms. Laura Alsenas of Nexus for Development shared how her organization has evolved to support small and medium-sized enterprises (SMEs) in accessing climate finance and carbon credits. Originally focused on helping SMEs access climate finance, Nexus now manages a fund that integrates gender lens investing into its strategy to target underserved businesses.
“Impact investing is about more than ESG. It’s about whether a company’s intentions are focused on measurable positive impact,” Alsenas explained. While Nexus has successfully helped SMEs scale through impact investments, the broader market in Cambodia is still catching up. Many companies remain unaware of the full potential of ESG and impact investing, largely due to the lack of tools and resources available for data-driven impact measurement.
Mr. Parth Borkotoky of Azaylla, an agriculture-based company, explained how Azaylla’s efforts in governance, food waste reduction, and plastic minimization have resonated with investors. “Strong governance attracted the attention of impact investors even before our environmental and social initiatives became a focus,” Borkotoky mentioned. However, he also highlighted the underdeveloped state of Cambodia’s venture capital market, which he believes limits the growth of impact-focused businesses. “For impact investors, financial performance is only part of the equation—what they want to see is real, measurable impact alongside profitability.”
Overcoming Challenges in Cambodia’s Impact Investment Ecosystem
The panelists also addressed several challenges that Cambodia faces in growing its impact investment sector. Ms. Vuthy Chea remarked that while interest in gender lens investing (GLI) and climate finance is rising, Cambodia still lacks a cohesive framework to facilitate these investments. “To avoid ‘impact washing,’ it’s essential to set clear intentions for impact and establish measurable goals,” she said. Incofin has been at the forefront of integrating ESG factors into their investment decisions, employing tools such as universal social performance standards to assess potential investments.
Ms. Dahome from Sevea Consulting added that many Cambodian companies still lack the necessary knowledge and resources to gather the data required for impact measurement. “There is a need for better education and tools to help entrepreneurs and companies understand how to measure and demonstrate their impact effectively,” she pointed out.
Mr. Borkotoky echoed these sentiments, stating that international impact investors bring not just capital, but also networks and expertise in ESG integration, which could help Cambodian companies scale their operations regionally. He expressed hope that with the right support, Cambodia could become a key player in Southeast Asia’s impact investment landscape.
Future Outlook: Building a Stronger Impact Investment Ecosystem
The event concluded with group discussions where participants explored ways to improve collaboration among investors, entrepreneurs, and intermediaries to further strengthen Cambodia’s impact investing ecosystem. One of the major recommendations that emerged was the need for innovative financing mechanisms tailored for startups and early-stage SMEs. Additionally, the establishment of public-private partnerships to deliver entrepreneurship training programs was emphasized as a critical step to fostering a culture of innovation and investment readiness.
Networking opportunities followed the group discussion, allowing attendees to continue conversations and explore potential partnerships. The Give a Day initiative continues to provide a platform for ecosystem actors to connect, collaborate, and support Cambodia’s entrepreneurial ecosystem, with upcoming events planned in Battambang and Siem Reap later in the year.
As Cambodia’s entrepreneurial and impact investment ecosystem matures, events like Give a Day will play a critical role in fostering the relationships and trust needed to drive the sector forward.
The Give a Day event is co-financed by the Swiss Agency for Development and Cooperation (SDC), the Korea International Cooperation Agency (KOICA), and Khmer Enterprise and co-implemented by Khmer Enterprise and Swisscontact through the Enhancing Entrepreneurial Ecosystem and Investments (3Ei) initiative.
