Rabobank in developing countries
In Brief
THE WORD 13
EXOTIC
BANKING
Rabobank is a typical Dutch company, with that
traditional Dutch entrepreneurial spirit that has taken
it all over the world. Not only to places with healthy
mature economies, but also to the chalienging world
of developing countries where various specialised
Rabo operations are at work. Generally forprofit,
sometimes out of pure human generosity.
TEXT Sharon Klein PHOTOGRAPHY Merlijn Doomernik
The world is constantly changing. And countries that
are seriously underdeveloped can, - with wisdom
and energy - change within a decade to a respect-
able economie power. Rabobank recognises this and
thus gives special attention to such regions. Three
Rabo operations direct their gaze towards develop
ing countries: Rabobank Foundation, Rabo Develop-
ment and Rabobank International. Each ploughs its
own furrow, but increasingly with an eye to where
the others' furrows are leading.
The Rabobank Foundation is an institution opera-
ting without profit motive. It seeks to improve the
lot of those short on opportunities, both in the
Netherlands and further afield. Outside its home
land, the Foundation principally attacks poverty and
stimulates communities to encourage economie
independence. "We do it generally by providing
know-how and financial resources", explains Bart
Jan Krouwel, Managing Director Corporate Social
Responsibility. "For example, we organise small-scale
farmers into co-operatives and provide microcredits.
Standing together, they can sell their crops to the
large buyers at a greater profit".
Rabo Development works differently. This part of the
Rabo group supplies financial services in develop
ing country locations where they are thin on the
ground. "Actually, what we are doing is creating new
Rabobanks in other parts of the world", says Arnold
Kuijpers, Managing Director Rabo Development.
"Banks that are well represented in country areas and
that can serve all the many markets". Rabo Develop
ment does this by taking a financial interest in a
local bank and supplying parallel management and
technical expertise, (the latter often under the name
of Rabo International Advisory Services, or RIAS, the
consultancy arm of Rabo Development).
Rabo Development aims for profits. Kuijpers: "While
profits in the short term are subordinate to the
longer term development potential, we certainly do
cover our costs. At the same time, our partner banks
grow into mature and self-confident institutions
contributing to Rabobank's presence in countries
that will surely ultimately become important in the
worid's economy". Rabo Development thus has a
purely business objective but in the process gives
a helping hand to rural economies, again especially
in developing countries. Only when people have
savings accounts, loans and insurance are they in a
position to invest and grow.
Also operating in developing countries around the
world, Rabobank International provides corporate
and retail banking to expand others' commercial
activities and generate profits at home. In retail
banking, the emphasis lies with expanding existing
corporate services to farmers and the purchase of
country banks. Here, the target is helping banks gen
erate the returns expected by Rabobank. In the case
of corporate banking in developing countries,
Rabobank International targets - more than else-
where - the food and agribusinesses. Consider, for
instance, the financing of money flows, which ena-
bles farming products to find their way to western
consumers.
Rabobank Foundation
Ag e - 35 years
Goal - improve the position of underprivileged
groups
Method - provide financial resources (usually
as micro-credits) and know-how
Profit motive - none
Operational in - 25 countries including
the Netherlands (75% of work is in developing
countries, 25% in the Netherlands)
Annual Budget - some EUR 12 million.
Local banks contribute voluntarily;
Rabo Nederland adds up to 0.5% of the profit
of the Rabobank Group. Within 18 months the
budget will reach EUR 15 million thanks to loan
interest income
Staff - four country visitors and five back-office
staff- total nine
Rabo Development
Age - 3 years
Goal - developing 'Rabobanks' in selected
countries and support economies of developing
countries
Method - risk-bearing participation in strong
banks in rural areas and providing them support
Profit motive - profit targets in the longer term
Operational in - Tanzania, Zambia, China,
Mozambique, Paraguay and soon also Rwanda
Balance sheet total - EUR 4,510 million
Staff - 20 expatriates, up to 30 by year-end 08.
Some 120 Dutch staff are seconded annually
on short work visits for periods from one week
to three months.
ISSUE 15 JANUARY