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Cambodia’s graduation from the least developed country (LDC) category in December 2029 will mark a significant development achievement. Making that progress last requires action now - to safeguard jobs, strengthen export competitiveness and finance the country’s next phase of development.

With support from the United Nations Peace and Development Fund (UNPDF), UN-OHRLLS is helping Cambodia strengthen its capacity to access and effectively use support measures and financing available beyond LDC status. The objective is clear: translate the priorities of Cambodia’s Smooth Transition Strategy (STS) into practical, financed and coordinated action.

Cambodia, Senegal and Solomon Islands are the three beneficiary countries of the UN-OHRLLS-led UNPDF project on mobilizing resources and means of implementation for sustainable graduation through South-South cooperation. Running from 2025 to 2027, the project contributes to the Sustainable Graduation Support Facility (iGRAD) and advances the Doha Programme of Action and the Sustainable Development Goals.

Connecting national priorities with financing

Working closely with Cambodia’s Ministry of Planning, the United Nations Resident Coordinator’s Office and ESCAP, UN-OHRLLS is supporting the development of an integrated country diagnostic and a financing strategy for STS implementation.

The diagnostic will assess graduation-related risks, institutional capacity gaps and opportunities for economic transformation. Alongside exposure to changing trade preferences, it will examine the requirements for maintaining competitive market access, including rules of origin, product standards, and labour, environmental and sustainability requirements.

Sector-level analysis will identify where reforms, investment and technical assistance can deliver the greatest benefits across garments, footwear, agriculture and emerging industries. Employment, gender equality and environmental sustainability will inform both the assessment and its recommendations.

Building on these findings, the financing strategy will match priority actions with suitable funding sources. These will include domestic public resources, development cooperation, climate finance, private and blended finance, Aid for Trade, regional mechanisms, and South-South and triangular cooperation.

Strengthening capacity for implementation

Access to finance requires more than identifying available funds. It depends on institutional readiness, sound project preparation, effective coordination and the ability to meet each instrument’s requirements.

The UNPDF-supported work will assess which opportunities Cambodia can realistically pursue, what capacities need strengthening and which institutions should lead.

Recommendations will connect STS priorities with sequenced reforms, financing pathways, clear responsibilities and measurable results, aligned with national development and financing frameworks.

Consultations with government institutions, businesses, financial institutions, civil society and development partners will ensure that the analysis reflects implementation realities. The broader project will also facilitate peer learning and partnerships with graduating and graduated countries and other partners from the Global South.

Through this support, UN-OHRLLS and UNPDF are helping Cambodia build the foundations for a smooth, sustainable and irreversible graduation - one that sustains development gains and creates new opportunities for its people.

Graduation marks achievement. Investing in its implementation will help make that achievement endure.

For further information: please contact Mr. Nirupam Dev Nath, Programme Management Officer, UN-OHRLLS, nirupam.devnath@un.org