CAC News

PHNOM PENH, October 26, 2026 — The Cashew Nut Association of Cambodia (CAC), in cooperation with Canadia Bank Plc., organized an online workshop to explore potential financing solutions for Cambodia’s cashew industry, bringing together 48 participants to discuss access to finance and the challenges facing businesses across the sector.

CAC represents four categories of members: 19,802 cashew farmers, 25 processors, 239 cashew traders, and 30 agricultural input companies. These businesses require appropriate financing to sustain operations, expand production, invest in equipment, and strengthen Cambodia’s domestic cashew value chain.

During the workshop, Silot Uon, president of CAC, highlighted the financial difficulties confronting local cashew processors. He said that 13 member processing companies had suspended operations because of internal financial constraints, underscoring the urgent need for accessible financing to help businesses remain operational and develop their capacity.

Silot noted that conventional bank lending requirements, particularly collateral requirements based on borrowers’ assets and liabilities, remained difficult for many cashew businesses to meet. As a result, promising local processing investments have struggled to move forward.

“Access to finance remains one of the major barriers to developing Cambodia’s cashew processing industry. We hope financial institutions can introduce more flexible lending conditions that reflect the realities of local processors,” he emphasized.

Canadia Bank Introduces the Khmer Support Khmer Program

In response to the financing needs of Cambodian businesses, Canadia Bank presented its Khmer Support Khmer (KSK) Program, an initiative designed to support and empower Cambodian small and medium-sized enterprises (SMEs).

The program offers financing solutions to address working capital requirements, business expansion, equipment investment, and cash-flow needs through a range of flexible loan products. Eligible businesses must have been operating for at least one year.

The program also allows borrowers to seek financing to pay off or refinance existing loans from other banks. However, Canadia Bank reserves the right to modify or discontinue the program without prior notice, while the standard terms and conditions of its general SME loan program continue to apply.

The initiative could provide an opportunity for businesses across Cambodia’s cashew value chain to obtain the capital needed to maintain and expand their operations.

Bridging the Financing Gap for Local Processors

Despite the potential benefits of the KSK Program, the workshop indicated that financing conditions may not yet fully address the needs of all businesses in the cashew sector. Traders showed interest in the loan policy, while local processors appeared less interested, reflecting the challenges they face in meeting existing lending requirements.

Silot called on Canadia Bank to consider adjusting certain loan conditions to make financing more accessible to domestic cashew processors. He stressed that suitable financing arrangements are essential to encourage processors to resume operations, invest in modern equipment, increase processing capacity, and create greater value within Cambodia.

He also expressed concern about the limited progress in developing the domestic processing industry and emphasized the important role banks could play in helping businesses overcome financial barriers.

For CAC, stronger cooperation between the banking sector and cashew businesses is an important step toward reducing reliance on raw cashew nut exports and promoting domestic processing. While international non-governmental organizations and development projects can contribute technical assistance and other forms of support, sustainable access to commercial financing remains critical for businesses seeking to grow and compete.

The workshop marked an opportunity for CAC and Canadia Bank to exchange perspectives on financing challenges and explore ways to better align lending products with the needs of Cambodia’s cashew industry. More accessible and appropriate financing could help local processors restart operations, strengthen the broader value chain, and support the sector’s long-term industrial development.