Cambodia : Leader in ethical microfinance?

Agence Francaise de Developpement



AFD is continuing to support microfinance in Cambodia and is helping the main microfinance institutions to obtain Smart Campaign certification. The result: 4 new certifications which show they comply with the client protection principles.

For ethical and responsible microfinance

It is in the context of the project to support the Cambodian Microfinance Association (an association gathering the country’s 61 microfinance institutions and NGOs) that AFD is financing the Smart Campaign certification process of several of the country’s microfinance institutions.

The NGO Smart Campaign has launched a global campaign which aims to give microfinance institutions (MFIs) the tools they need to deliver transparent, respectful, and prudent financial services to all their clients.

The microfinance industry can consequently strengthen its social nature, while remaining financially sound.

Seven client protection principles

Seven core principles have been defined by sector stakeholders (microfinance associations, microfinance institutions, international networks, NGOs and international investors) in order to establish practices that respect and protect clients :

• Appropriate product design and delivery;
• Prevention of over-indebtedness;
• Transparency;
• Responsible pricing;
• Fair and respectful treatment of clients;
• Privacy of client data;
• Mechanisms for complaint resolution.

Cambodia: Leader in the Smart Campaign initiative

In 2015, LOLC (which was called TPC at the time) was the first Cambodian microfinance institution (MFI) to be certified.
On 11 July 2016, four new Cambodian MFIs obtained the certification granted by the NGO Smart Campaign: Amret, HKL, Sathapana and VisionFund.



This is a major success for these MFIs, but also for the rapidly growing microfinance sector in Cambodia. With six MFIs now certified, the country can pride itself on being the world leader in this client protection principles initiative (62 MFIs certified to date).

Priority sector for AFD in Cambodia

AFD has been active in the development of the microfinance sector in Cambodia since the early 1990s. Today, AFD is continuing its support in order to help microfinance address new challenges (supervision of the risk of client over-indebtedness, diversification of its products and sources of financing).