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Rabo Development within the Rabobank Group
Rabobank Foundation
- Development of cooperatives, microfinance and sustainable agri value chains in rural communities of developing countries - Project based through grants, guarantees, (soft) loans and consultancy
Rabo Development
- Create access to financial services in developing countries with F&A potential through rural retail banks - Investment in, and development of partner banks through financial investment, delivery of management services and technical assistance
Rabobank Group
- Rabo International - F&A Banking - Local Member Banks - Retail banking - Group entities - Leasing, insurance, etc.
Sustainable cooperative banking with involvement in the F&A value chain
Rabo Development
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Context of Rabo Development’s activities
Financial Services
Multilaterals
NGOs
Government
Access to
financial services
Equity Technical Assistance Management Services
Sharing international and cooperative banking knowledge and experience
Enabling Environment Policy Dialogue
Financial Instruments
Rabo Development
Figures partner banks 2013
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Country Bank Start Share Rabo
Offices Staff Customers Total Assets in € mln.
Tanzania NMB 2005 35% 152 2,860 1,481,000 1,396
Zambia Zanaco 2007 46% 64 1,643 619,000 728
China URCB 2007 9% 144 2,146 1,906,000 11,878
Paraguay Banco Regional 2008 40% 38 711 76,000 1839
Mozambique Banco Terra 2007 45% 9 157 25,000 43
Brazilië Sicredi 2011 19% 1,249 16,258 2,502,000 12,274
Uganda DFCU 2013 28% 30 665 133,000 351
Rwanda BPR 2008 35% 191 1,450 285,000 174
Mexico (2014) Miami (2014)
Finterra LAAD
From: To: • 600,000 customers 1,800,000 customers • No farmers reached 125,000 farmers reached • 1,500 staff 2,700 staff • 0 ATMs 500 ATMs • 0 cards Over 1.2 million cards • No mobile banking users 600,000 registered mobile banking
users • Limited product range Full product range
- Savings account - Payments / Collections/Trade finance - Payments - Lending - Savings and deposits - Treasury
• 100 branches 149 branches • Limited technology Real time online nationwide
Financial inclusion: example NMB 2005-2012
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Development Partner bank relationship
8
time
volu
me
Business partnership
Development partnership
Commercial links • Trade & Commodity
Finance
• Corporate F&A clients
• Introduction of Dutch SMEs
Management services & TA
Commercial links
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Agribusiness Advisory (RIAS): focus areas
Agri finance Capacity Building
Supply chain Development
Agri Credit & Risk management & tools
Value chain financing
Agri commodity finance/WHR finance
Risk Sharing & Guarantee Instruments
Agri strategy development
Cooperative financing
Value chain projects & studies
Financial management
Agribusiness Advisory
Cooperative Capacity building
Cooperative governance
Member communication
Bankability
Legal & Regulatory issues
Capitalization Policies
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Ivory Coast – Cooperative development in cocoa sector
A 3-year Cooperative capacity building project with ECOM & PACTS
10 cooperatives in this program are trained in the areas of governance,
capitalization and cooperative management.
The program activities have significantly contributed to improve the
knowledge of farmers at section levels on their role and obligations within
the cooperative.
This has resulted in an increase of number of members fulfilling their
obligations such as paying their shares.
Introducing input financing scheme through Rabobank Foundation
Introducing cashless banking via Caisse D’epargne
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Vietnam – Agribusiness & cooperative development
Coffee sector: Cooperative capacity building project (Douwe Egberts, IDH,
RF)
Cocoa sector: Design financing solutions for coops (Mars, Cargill, RF)
Dairy sector: Supporting the largest dairy cooperative & supplier of
Friesland Campina Vietnam
Horticulture: Design finance scheme for investments by emerging farmers
Sacom Bank: MoU for technical support (Rabo Singapore/RD)
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Enabling environment is critical to agriculture & agri finance
Competitive Agri
finance
Legal & regulatory framework
Collateral availability
Capital markets
Business culture
Government support framework
Skill level
Infrastructure
Value chain organisation
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Agri Knowledge Transfer is Key
Knowledge Collection
Product/scheme Development
Agri Credit & Risk
Framework
Capacity Building
Agri Department HQ Strategy, Coordination & Control
Macro Sector policies Internal
Micro Credit manuals External
Branches & Agri Commercial Officers Operations & monitoring
Agri Wholesale
Agri Retail
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Dairy partnership Zambia
Milk Processor
Project structure
Dairy Coooperatives & Emerging farmers
RIAS
Rabobank Foundation
• Dairy partnership Zambia develop financing schemes for dairy farmers to buy cows score cooperatives on eligibility support Zanaco in financing process and provide working capital /investment loans to
cooperatives / emerging farmers. • Impact: Approx. 320 smallholder farmers and 7 coops financed • Target financing of USD 6 mln for w/c support and capex to facilitate production capacity
expansion
Raw Milk
Proceeds
WC loans & investment loans
50% risk sharing
Project advisory