12.40

6.40

6.80

5.80

0.80

1.20

7.80

8.80

9.00

0.20

0.20

12.40 7.90

7.50

Guides for gutter

Text colours

R 27 G 66 B 152

R 0 G 0 B 0

R 127 G 127 B 127

Background shading

R 242 G 242 B 242

R 225 G 235 B 244

R 227 G 244 B 236

8.40

Colour order (left to right, top to

bottom) R 59

G 110 B 143

R 251 G 193 B 119

R 115 G 198 B 161

R 103 G 153 B 200

R 186 G 163 B 171

R 191 G 191 B 191

R 127 G 127 B 127

R 201 G 48 B 146

R 27 G 66 B 152

R 84 G 7 B 91

R 248 G 152 B 29

R 241 G 237 B 238

R 254 G 234 B 210

R 211 G 227 B 237

Rabo Development A story on finance for food

Pierre Schonenberg Finance for Food

2

Rabo Development’s roots and mission

Rabobank was founded 110 years ago by farmers who did not have

access to financial services. Today, more than four billion people

worldwide still lack access to these services.

Rabo Development’s mission:

Drawing on Rabobank’s cooperative heritage and banking knowledge

in the Netherlands, Rabo Development aims to increase access to

financial services in developing countries that have substantial

potential in the food and agri sector.

Rabo Development

3

Rabo Development partner banks and advisory projects 2012

-

Rabo Development

Partner banks

Advisory projects

4

What does it take to become a successful F&A bank?

5

What does it take to become a successful F&A bank?

6

What does it take to become a successful F&A bank?

Emerging farmers

Commercial

farmers

Subsistance farmers

Commercial smallholders

(cash crops)

Relationship approach, often USD lending

Retail/SME approach with “agri twist”

lack of financials, need for benchmarking,

technical assistance on agro & financial skills

Scheme based approach (e.g. out grower

schemes), use Coops for coordination and

aggregation

Via SACCOs, coops, saving based loan schemes, etc

Traditionally

bankable

Traditionally

Unbankable

7

Macro:

Micro:

Sector

Policies:

Agri-

finance

products

Internal:

External:

AGRI Department HQ -

Branches

Agri-loan officers & Risk management

Product development Knowledge collection

& dissimination

Sector

policy making

Capacity building

8

Value chain approach should be leading

Farmers Coops Processors Traders

Asset Finance

• Input financing

• Raw Material

Collection Financing

• WHR financing

• Cooperative capacity

building

• Save For Loan

• Credit score cards

• Outgrower schemes

• Emerging farmer

programs

• Working Capital

• WHR financing

• Trade & Commodity

Finanance

Working capital

9

But a bank needs to serve more than only F&A:

Strategy review

Distribution channel management

Risk management

Information Technology (IT)

Product management

Human Resources

Agri value chain solutions

Agri sector knowledge

Value proposition(s)

Customer segmentation

Cooperative building

Etc.

10

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

11

• Develop a supportive legal and regulatory framework

• Building consistent and reliable data sources

• Building capacity of financial institutions in partnership

• Funding / smart subsidies / risk sharing

• Networker/matchmaking

Role public sector:

12

• A F&A bank needs commitment and investment for the sector

• A F&A bank sees long term business in development

• A F&A bank in a developing country can only be successful in cooperation with carefully

selected (public) partners.

• Partnership must be based on the principle that each partner does what it can do

best;

Key messages

12.40

6.40

6.80

5.80

0.80

1.20

7.80

8.80

9.00

0.20

0.20

12.40 7.90

7.50

Guides for gutter

Text colours

R 27 G 66 B 152

R 0 G 0 B 0

R 127 G 127 B 127

Background shading

R 242 G 242 B 242

R 225 G 235 B 244

R 227 G 244 B 236

8.40

Colour order (left to right, top to

bottom) R 59

G 110 B 143

R 251 G 193 B 119

R 115 G 198 B 161

R 103 G 153 B 200

R 186 G 163 B 171

R 191 G 191 B 191

R 127 G 127 B 127

R 201 G 48 B 146

R 27 G 66 B 152

R 84 G 7 B 91

R 248 G 152 B 29

R 241 G 237 B 238

R 254 G 234 B 210

R 211 G 227 B 237

Thank you for your kind attention https://www.rabobank.com/en/rabo_development/index.html

Rabo.development@rn.rabobank.nl

Rabo Development