Rabo Development supports rural banks in developing countries
Rabo Development helps rural banks operating in developing countries to transform themselves
into professional, modern financial institutions. In this way, Rabobank succeeds in providing
millions of clients in other parts of the world with access to financial services, in line with its
original mission in the Netherlands. Rabo Development's partner banks differ from other
banks as their market is specifically seen to include rural areas. While retaining their autonomy,
these banks benefit from Rabobank's capital, expertise, products, network and management
capabilities. To this end, Rabo Development uses the knowledge and experience of Rabobank
staff from all parts of the organisation. Experts in the areas of credit management, risk
management, product development, distribution, ICT, HR and other areas of specialisation
are sent on assignments on an ongoing basis.
Banking services for millions via partner banks
Bank Country Equity interest (in Branches Employees Customers
National Microfinance BankTanzania35 134 2,4812,055,000
United Rural Cooperative Bank of HangzhonChina10 136 1,728 1,400,000
Zambia National Commercial Bank Zambia 46 55 903 235,000
Banco TerraMozambique319 129 7,040
Banco RegionalParaguay40 35 630 55,000
Banque Populair du RwandaRwanda35 194 1,443 1,075,000
Totaal 563 7,314 4,827,040
The strategic alliances of Rabo Development enable a large section of the population in
developing countries to access financial services provided by the partner banks. At the same
time, this helps strengthen Rabobank's international position in the food and agri sector.
At year-end 2009, Rabo Development had non-controlling interests in the following six partner
banks: National Microfinance Bank ofTanzania, Zambia National Commercial Bank, United Rural
Cooperative Bank of Hangzhou, China, Banco Terra of Mozambique, Banque Populaire du
Rwanda and Banco Regional in Paraguay. The former ABN AMRO operations in Paraguay were
acquired from Banco Santander in the second half of 2008. These operations were physically
integrated into Banco Regional in November 2009. In addition to the capital increase in Banco
Regional, capital in Banco Terra was increased in 2009 as well. Overall, the six partner banks
have created jobs for more than 7,300 local employees. Boasting over 560 branches, they
serve more than 4.8 million customers in developing countries.
Besides contributing to the development of partner banks, Rabo Development also supports
certain other financial institutions, including the Principle Bank for Development and
Agriculture Credi in Egypt, the AGRO Bank in Malaysia and the First Merchant Bank in Malawi.
Responsible loans to food and agribusinesses
Rabobank Group wants to contribute its share to making the food and agribusiness more
sustainable. A draft policy, which is based in part on the Food Agribusiness Principles, was
developed in 2009 for twelve value chains. A decision on the implementation plan for the
Principles and the value chain policy will be taken in the first half of 2010.
A corporate social responsibility assessment has been a requirement in the loan approval
process for some time now. We assess what ethical issues are at play in the countries or value
chain in which a customer operates, how they affect its business and what commercial
opportunities there are to be grasped. The CSR assessment was fully revised in 2009, so that
customer relationship managers are supported even better in their dialogue with customers.
Access to loans in agri business chains
Rabobank can offer added value for making production in the value chains of soft commodities
as sustainable as possible by introducing clients to each other and giving insight into the
chain. This is what the Sustainable Agri Fund (SAGF) does. This guarantee fund, which was
established by Rabobank International and Rabobank Foundation, offers select small and
medium-sized producers of sustainable agricultural products in developing countries easier
access to working capital based on commercial and sustainable terms.
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Report 2009 Rabobank Group
