The joint AUD 18 million initiative to support sustainable and inclusive development through 2027
Cambodia Investment Review
Australia and Germany have launched a new multi-million-dollar initiative to bolster Cambodia’s social protection and healthcare systems, marking a significant move to address inequality, improve institutional capacity, and support the country’s sustainable growth trajectory.
Under the newly signed arrangement, Australia’s Department of Foreign Affairs and Trade (DFAT) and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) will co-finance the Improving Social Protection and Health II (ISPH II) project. Germany is contributing €9.7 million (approx. AUD 15.6 million), while Australia will provide AUD 4.5 million in funding, with the project running until September 2027.
A Shared Commitment to Inclusive Growth
Implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the project will provide targeted technical assistance to key Cambodian institutions and support national efforts to build a more resilient and inclusive social protection and health system. Priority areas include gender responsiveness, climate change resilience, and disability inclusion.
“Through this collaboration, we aim to deliver solutions that enhance Cambodia’s social protection system and provide essential services for those in need,” said Bridget Collier, Chargé d’Affaires to the Kingdom of Cambodia. “In line with Australia’s development priorities, this project is focused on strengthening institutional capacity in order to tackle poverty and inequality.”
Jost Kadel, Deputy Head of Mission and Head of Development Cooperation at the German Embassy in Phnom Penh, added that the initiative “reflects our shared commitment to enhancing social protection and health systems in Cambodia,” highlighting the project’s potential to “foster resilience and promote inclusive growth in the region.”
The Improving Social Protection and Health II project follows earlier cooperation between the two countries and responds to direct requests from Cambodian partners to scale up efforts in the social sector. It aligns with broader development strategies from both governments aimed at improving living standards and access to services for vulnerable populations.
Institutional Strengthening at the Core
GIZ will lead the project’s implementation, working closely with the National Social Protection Council (NSPC)—the government’s central coordinating body on social protection—and other ministries including the Ministry of Planning, Ministry of Social Affairs, Veterans, and Youth Rehabilitation, and the Ministry of Health. Additional key partners include the National Social Security Fund (NSSF), National Social Assistance Fund (NSAF), Social Security Regulator (SSR), and National Payment Certification Agency (NPCA).
Kristina Knispel, Programme Director at GIZ for the project, noted that “the co-funding support will allow us to apply innovative approaches tailored to partner needs.” She emphasized GIZ’s goal to deliver systemic impact by “fostering collaboration across institutions, communities, and service operators.”
GIZ brings a long-standing track record of delivering technical assistance in Cambodia and other countries through its international cooperation programs. More about GIZ’s broader engagement in Cambodia can be found here.
A Regional Development Model
The project is also seen as a model for regional cooperation on sustainable development. By combining resources and technical expertise, both Australia and Germany are reaffirming their commitment to supporting Cambodia’s economic and social transformation—particularly as the country moves closer to its goal of achieving upper-middle-income status by 2030.
The initiative builds on Australia’s broader development strategy in Cambodia, which includes priorities around human capital development, inclusive economic growth, and governance reform. More details about DFAT’s engagement in Cambodia can be found on its official site.
The ISPH II project’s launch comes at a critical time as Cambodia continues to rebuild after the COVID-19 pandemic and work toward more equitable and sustainable public services. For a full project overview, including technical details and focus areas, the official project factsheet is available here (PDF).
