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Building and organizing self-reliant communities through integrated credit unions program in Cambodia

Requested by

Farmer's Life Improvement and Future Light Youth Organization (FLIFLY)

Who are you trying to help? What issue are you trying to address?

1. Lack of capital

Capital input for farming (raise animal and poultries, fishing) and for small business is the main steam for increasing incomes for our target beneficiaries. Nowadays poor people are dependent on money lenders and private banks who charge a lot of interest (private money lenders charge 5-10% per month and private banks charge 3-5% per month). Quite often their properties have been taken from them as repayment while the borrowers do not have enough capacity to repay the loans. Besides the high interest rate, the lenders also require flat rate repayment which makes more profit for the lenders but and push the poor more into debt, and they become poorer and poorer. Therefore we are trying to form the credit unions (CUs) in order to serve poor people.

2. Lack of qualified people

When the beneficiaries do not understand about development and try development activities, they face lack of skills and capacity to establish and/or to extend the activities. FLIFLY conducted a meeting with the communities, local authorities and commune’s volunteers about credit unions and other related issues on September 20, 2010, and the results indicated that the communities have not got skills from other NGOs that built and organized credit unions.

3. Access to soft credit by formation of credit union

As mentioned above, we have seen that there is only one way that we can provide the soft loan to beneficiaries – we need to establish the Credit Unions.

What is your project and how will it help?

1. Benefit to individual

They can earn more income by learning and developing new concepts for creating new jobs for their families, or they can join with credit unions where many people are participating. Each individual can help their families and children in improving their own future. Through learning skills and joining credit unions, the members can make themselves into good members and serve as model for their children. This way they can relief themselves from poverty and improve their standard of living. Therefore, the project can really respond to the needs of the people as well as solve the problem of lack of capital for professional jobs of our beneficiaries. Students will learn knowledge about policies and by-law, saving mobilization, lending, accounting, credit union management and business plan of CUs from project areas that are run by FLIFLY.

2. Benefit to community

The individual belongs to a community and they can serve as examples to their neighboring families to have better characteristics and join in our project. The neighboring families can also relief themselves from poverty. They can see that there are many chances to gain new jobs and incomes for their own families. When many individual members have good attitude and join the project, the community can become a good and self-reliant community. Other communities will learn and benchmark from these Credit Unions and practice in their own communities.

3. Social and economic 

While the communities change, society is also changed. Communities from undeveloped provinces / social standing will become developed and help to improve the province. The province will move from poor economy to rich economy, but it will take time for reaching this target point, where there are enough food for consumption and enough capital for professional jobs.

4. Benefit to future of their children

Credit unions that we are going to organize will become the community financial institution in the future, and the children of the beneficiaries can join this institution. Therefore, not only the parents, but also the children can be members and they can earn save money for their children’s schooling and enable them to look for jobs in the future. Credit union can make a bright future for them all. Credit Unions are involved to reduce unemployment and reduce poverty of farmers. Credit unions are also institutions for education of the participants and their children.

How can other people partner with you on your project?

Farmer’s Life Improvement and Future Light Youth Organization (FLIFLY) works in partnership with universities, companies, international and local NGOs to strengthen and promote credit unions, sustainable agriculture practices and vocational training skills as effective instruments for socio-economic development of farmers in Cambodia.

We welcome universities, companies, international and local NGOs, donors agencies and government of other countries to collaborate with FLIFLY to promote credit unions in in all provinces and the capital of Cambodia. Partners of FLIFLY can contribute technical and financial support for FLIFLY to implement this project smoothly.

Please detail the resources that you need.

- Premises
- Overheads
- Rent (Contribution)
- Utilities (electricity and water and air con, Internet, Telephone)
- Household Costs
- Repairs and Maintenance
- Stationary
- Auxiliary Staff
- Insurance (Health and Workers’ Compensation)
- One motorcycle
- Gasoline (motorcycle)
- Buy computers
- Project leader and project officers (1 Project leader, 4 Project offers)
- Health and accident Insurance (4 persons)
- Transportation ($48 return way for 4 persons)
- Accommodation ($15/night for 4 persons)
- Food ($10/day)
- Printing/copying
- Stationary
- Internet
- Phone Card
- Motor Taxi at Field
- Petrol
- Stakeholder’s Expense
- Gifts for committees of all credit unions
- Shacks of committees of credit unions
- Printing books and receipts for credit unions
- Monitoring and Evaluation
- Monitoring Visit
- Audit firm
- Attend credit unions forum per-year that are comprising the cost of three years from 2013-2015
- Total = US$135,710

For more details, please refer to the attached project proposal.

Further information

Contact details

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Partnership types

Project funding; Provision of services / personnel

Regions / countries / territories

Asia: Cambodia

Global issues

Financial accessibility and management


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