LOLC Cambodia has committed to addressing the growing challenges of climate change, especially for those in the agricultural sector. According to the 2024 Client Self-Perception Survey, 22 per cent of respondents have reported a drop in income due to extreme weather events such as heatwaves and droughts.
The situation is being felt even more severely in areas like Battambang province’s Samlot district, where 72 per cent of clients, mostly rice farmers, have been hit hard by crop failures, caused by extreme weather.
In response to these pressing issues, LOLC Cambodia has introduced and bought weather index rice crop insurance t, to provide financial protection and support to the rice farmers who are most at risk in Prey Veng, Kampong Thom, and Battambong Provinces. By the end of 2024, this programme will have already supported 3,859 rice farmers, offering them compensation for losses caused by climate-related disasters.
The policy acts as a safety net, allowing farmers to recover faster and continue supporting their families and communities despite the uncertainties brought by climate change.
Sok Voeun, Chief Executive Officer of LOLC (Cambodia) Plc, explained the company’s motivation.
“Farmers are on the frontlines of climate change, we understand the challenges they face, and our mission is to give them the tools they need not just to survive, but to thrive in the face of environmental risks,” he said.
“Our rice crop insurance is designed to provide a critical safety net for farmers, helping them not only recover from losses but also build resilience for the future. By standing with our farmers, we are reaffirming our commitment to sustainable growth and a more secure future for Cambodia’s agricultural communities,” he added.
This bold move underscores LOLC Cambodia’s commitment to building resilience in the Kingdom’s agricultural sector. By safeguarding the livelihoods of farmers and helping them face climate-related risks head-on, the institution is playing a vital role in promoting sustainable development and economic stability.
As the agriculture sector faces ongoing climate challenges, the company’s proactive initiatives, such as rice crop insurance, demonstrate its dedication to empowering communities and securing their financial futures. This programme highlights LOLC Cambodia’s broader mission to support sustainable growth while solidifying its role as a reliable partner in Cambodia's journey towards climate resilience.
Through its forward-thinking approach, the institution isn’t just meeting the immediate needs of farmers today but is also helping pave the way for a more sustainable and secure future for Cambodia’s agriculture sector and its hardworking farmers.
“Here at LOLC Cambodia, we recognise that farmers are the backbone of our economy, and they are the ones most affected by the unpredictable impacts of climate change,” added Sok Voeun.