Germany Reaffirms Long‑Term Development Partnership With Cambodia

PHNOM PENH, June 2, 2026 (KPT) — Germany has reaffirmed its long‑term commitment to supporting Cambodia’s socio‑economic development, governance reforms and public service modernization during a farewell meeting with outgoing German Ambassador Stefan Messerer, officials said Monday.

Deputy Prime Minister and Finance Minister Aun Pornmoniroth met Messerer at the Ministry of Economy and Finance as the ambassador concluded his diplomatic mission. The meeting was also attended by Werner Gatzer, leading a mission under the Improved Service Delivery in Cambodia – Phase 2 (ISD 2) program.

Pornmoniroth praised Germany as one of Cambodia’s most important European development partners, noting that Berlin has provided about $887 million in cooperation financing over the past three decades through institutions such as KfW and GIZ.

The support includes $762 million in grants and $125 million in concessional loans across education, healthcare, governance, rural development, energy, trade, demining, social protection and public financial management reform.

He also highlighted Germany’s role in decentralization and administrative reforms, including programs to improve accountability and strengthen local governance. ISD 2, launched earlier this year with €18.4 million in grant financing, focuses on enhancing service delivery and fiscal decentralization.

Pornmoniroth briefed the German delegation on Cambodia’s economic outlook, citing 5.3 percent growth in 2025 but forecasting a slowdown to 4.2 percent in 2026 amid global uncertainty, Middle East conflicts and border tensions with Thailand. He outlined new government measures to safeguard socio‑economic stability.

Messerer praised Cambodia’s proactive economic management and reaffirmed Germany’s commitment to long term partnership. Gatzer said his mission would assess Cambodia’s sub national financial systems and share international best practices.