Rabobank Foundation
Rabobank Foundation provides support to savings and credit organisations and farmers'
organisations in rural districts, focusing on microfinance and sustainable chain development.
Support is mainly provided by means of financial tools, but technical assistance is also hired
in, preferably locally or from Rabobank Group. Rabobank Foundation has its origins in a
cooperative organisation and is the product of that organisation's strength. For this reason,
it primarily supports cooperatives active in rural areas in 25 selected developing countries.
In 2009, Rabobank Foundation approved 166 applications received from abroad, providing
support worth EUR 21.1 million. The tools used outside the Netherlands by Rabobank
Foundation during the year were trade finance (29%), microfinance (33%) and donations
and technical assistance (38%).
Rabobank Foundation focused on adoption projects in 2009, under which the foreign
projects it supports are linked to contributions made by specific local Rabobanks.This allows
the local Rabobanks to identify with projects and creates extra opportunities for engaging
employees, members, and new and existing clients.
In 2009, Rabobank Foundation noted an upward trend in the average sum granted per loan
application. Owing to the state of the economy, importers and traders of agricultural products
that are based in Europe and the US are not pre-financing small producers in developing
countries to the extent they used to. Microfinance institutions are also experiencing a shortage
of finances in those areas where they depend on funding from the market or commercial banks.
Rabo Development
Rabo Development helps rural banks active in developing countries to become professional,
modern financial institutions. Strategic alliances enable a large section of the population to
access financial services provided by partner banks. Partner banks remain autonomous but
receive support in the form of capital, management and technical assistance. In 2009, banking
specialists spent over 200 man-months working on location on Rabo Development projects.
In December 2009, Rabo Development had 22 expats working abroad.
Increasing sustainability in chains and production methods
Cooperation within Rabobank Group allows influence to be exercised over specific parts of
the value chain, ranging from producers to multinationals. Rabobank clients often do not
have direct contact with farmers at the start of the production chain, but they can cooperate
with Rabobank Foundation and Rabo Development to help improve productivity levels,
sustainability and product quality among farmers. For example, Rabo Development and llovo,
a client of Rabobank International, provide farmers with advice on selling and processing
sugar cane. In Vietnam, Rabobank Foundation and Rabo Development are identifying ways in
which coffee growers can organise themselves in cooperatives and can adopt more sustainable
production methods.
Rabobank Sustainable Agri Fund
The Rabobank Sustainable Agri Fund, which was set up by Rabobank International in
association with Rabobank Foundation, is another example of sustainable banking in
developing countries.The guarantee fund forms strategic alliances with local commercial
banks aimed at helping businesses and cooperatives that are unable to arrange enough
trade finance to export their products, despite being profitable. In 2009, funding was
doubled thanks to additional contributions from Rabobank International and Rabobank
Foundation. At the end of 2009, the fund had issued guarantees totalling more than
EUR 5 million.
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Report 2009 Rabobank Group
