A new partnership between Cambodia, the EU and Germany is set to boost the sustainability, competitiveness and inclusiveness of the country’s cashew nut and pepper industries. 

The initiative aims to elevate local value addition, enhance national food safety systems and promote climate-resilient agriculture, ultimately creating decent jobs and sustainable growth in the sector.

The project was launched today, September 5, by EU ambassador to Cambodia Igor Driesmans, Chargé d’Affaires and head of German development cooperation at the German embassy in Cambodia Jost Kadel and Minister of Agriculture, Forestry and Fisheries Dith Tina, and falls under the Cambodia Partnership for Sustainable Agriculture and Food Systems (EU CAPSAFE) initiative. 

The partnership aligns with the Team Europe Initiative (TEI) and seeks to improve productivity by encouraging green technologies, agro-ecology and responsible investment in the country’s agricultural landscape.

Funded with $27 million from the EU and Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), the five-year CAPSAFE project will focus on increasing local capacity to meet international export standards, particularly in four provinces: Kampong Thom, Kratie, Tbong Khmum and Kampot.

Commitment to green growth

At the launch event, Driesmans stressed the importance of Cambodia’s commitment to sustainable growth. 

"This initiative reflects the EU and Germany’s commitment to promoting green growth and creating decent jobs in Cambodia in response to Cambodia’s increased commitment on green transition," he stated. 

"We hope to improve the cashew nut and pepper value chains for the benefit of farmers and SMEs, while promoting environment and social standards for exports to, and investments from, the EU," he added.

Kadel echoed the sentiment, highlighting the project’s potential to support Cambodia’s economy. 

“Our primary objective for this project is to enhance Cambodia’s competitiveness and climate resilience in the agricultural sector, resulting in greater incomes, expanded processing capacities and enhanced market access for all stakeholders involved,” he said.

Focus on climate resilience

Tina noted the project’s contribution to the country’s broader goals of modernising agriculture and addressing climate change. 

"As Cambodian agriculture progresses toward modernity with inclusive community practices and sustainable techniques, the CAPSAFE project represents a crucial step in strengthening our cashew and pepper value chains," he remarked. 

"By embracing green growth and enhancing export competitiveness, we are not only improving the livelihoods of our farmers but also ensuring that Cambodia contributes to carbon [neutrality] and remains resilient in the face of climate challenges," he added.

According to a September 5 joint press release, the event also served as a platform to showcase the successful outcomes of the Strengthening the Climate Resilience of Agricultural Systems in Cambodia and Vietnam (CRAS) project, which will conclude this month.

Funded by Germany, CRAS has provided farmers with enhanced techniques and supply chain improvements to better adapt to climate challenges and access new markets. Through public-private dialogue, the project has helped align interventions across the selected agricultural commodities.

The release highlighted that with the EU CAPSAFE initiative and other projects under the Team Europe approach, Cambodia is well-positioned to strengthen its agricultural sector and achieve green growth while contributing to global climate goals.