Seed funding and support from RECOFTC have enabled Cambodian communities to build forest funds that sustain livelihoods and protect forests.

In Cambodia, community forest development funds (CFDFs) support forest protection, restoration, local development and investment in forestry enterprises. With technical support and seed grants from RECOFTC, 117 community forestry groups across the country have established CFDFs, opened bank accounts and set up locally managed credit schemes. These CFDFs are enabling communities to generate and manage their own small-scale finance.

The CFDF in Trapeang Lapeak, Kampong Thom province started in 2014 with a seed grant of USD 1,000. A decade later, the fund has grown to over USD 10,500 and supports 84 members, including 57 women. “Having the CFDF in our community has made a big difference,” says Heng Seng, a member. “We know we can turn to it when we need to borrow money.” The group uses the fund to provide loans for farming and medical expenses. Interest revenue is reinvested in forest patrols, forest restoration, agroforestry, expanding road networks and other community forestry activities.

In Ou Tanoeung, Kratie province, we helped establish a CFDF in 2017, also with a USD 1,000 grant. By 2024, the fund had reached USD 11,220, with 111 members, including 47 women. The CFDF draws income from deadwood and pole harvesting and offers loans to local families. They are currently constructing a community office building using CFDF revenue, member contributions and construction materials sourced from the community forest.

In Trapeang Totoem, Preah Vihear province, we provided a USD 1,000 seed grant to help establish a CFDF in 2019. By 2024, the CFDF had grown to over USD 10,200 and supported 139 members, 70 of them women. The fund helps farmers invest in cassava production while the income from repayments covers patrols and firebreaks, which are particularly important during the dry season from February to March. “Without the CFDF, we would not be able to patrol our forests regularly,” says Kong Channy, a local group member. “The fund allows our community to take action.”

These three CFDFs operate on a simple, transparent principle – income from loan interest, resource-use fees and donations is pooled and reinvested. Our seed funds and ongoing guidance have enabled communities to create sustainable financial systems that reduce reliance on external support and strengthen forest management from the ground up.