Rabo Development: reaching the unbanked
accounted for 50.2% (47.7%) of total lending. Loans to the TIS sector fell by 5% to EUR 48.2
(50.6) billion. The economic slowdown was felt strongly in the industrial sector and the
wholesale industry. Loans to private individuals stood at EUR 5.4 (5.2) billion.
Rabo Developments mission is to provide developing societies with improved access to
financial services, employing cooperative principles and banking expertise. To achieve its
mission, Rabo Development is creating an extensive network of partner banks, which provide
access to financial services to a growing customer base, and are specifically equipped to
finance agriculture. These partners serve clients in all market segments, from for instance
individual farmers to small and medium-sized enterprises. Rabo Development offers three
types of development support: capital, management services and technical assistance.
Strategic alliances are formed with partners in Brazil, China, Mozambique, Paraguay, Rwanda,
Tanzania and Zambia, providing capital for the long term. The approach is to collaborate as a
minority shareholder and engaged board member, rather than acting as a controlling majority
shareholder. By holding a minority interest, the partners benefit from Rabobank insights while
remaining domestically owned.
Equity
interest
Customers
Bank
Country
(in
Outlets
Employees (x 1,000)
14 Numbers of Banco Cooperativo
Sicredi are based on the total
cooperative system.
National Microfinance Bank Tanzania
United Rural Cooperative
Bank of Hangzhou China
Zambia National Commercial
Bank Zambia
Banco Terra Mozambique
Banco Regional Paraguay
Banque Populaire du Rwanda Rwanda
Banco Cooperativo Sicredi" Brazil
Total
35
46
49
40
35
26
147
141
123
9
38
189
1,208
2,777
1,976
1,220
158
686
1,455
1 5,098
1,855
23,370
1,525
1,720
636
26
68
1,486
2,265
7,726
Access to finance for millions of customers
In 2012, Rabo Development has been approached by various financial institutions in
upcoming markets, ranging from Latin-America to Africa and Asia, for its specific know-how
on building sustainable financial institutions and agrifinance. This has led to a number of new
advisory projects. Together with the International Finance Corporation (IFC), a consultancy
project has started to restructure the State Cooperative Bank, one of the leading financial
institutions in the state Andhra Pradesh in India. At the same time, Rabo Development has
continued its support to its partner banks. Overall, these banks have been able to strengthen
their position in respective markets. The trend of increasing information and commercial
exchange between partners continues, now also linking to Rabobank International's Rural
Retail activities. The cooperation between Rabo Development and the Ministry of Foreign
Affairs of the Netherlands Government, in its efforts to promote financial inclusion and food
security, has been sealed by a mutual secondment of senior staff.
Active role in enhancing the sustainability of food and agri value chains
Rabo Development continued its active role in enhancing the sustainability of food and agri
value chains. In Rwanda, the intensive technical assistance program funded by World Bank for
BPR was extended to various sectors such as beans, maize, dairy and horticulture. Experts from
Rabobank International Trade Commodity Finance, Credit Risk Management, Legal Affairs
and Rabobank Westland played an active role in improving the agri knowledge and credit
framework of BPR. Together with the World Food Program (WFP), another project has started
with BPR to train 60 maize/been cooperatives that supply to WFP. At least 20 cooperatives will
be selected for an intensive capacity building program providing raw material collection
financing through BPR under an off-take agreement with WFP. This project is co-sponsored by
Rabobank Foundation and WFP.
In Tanzania, Rabo Development - in a partnership with Rabobank Maas Waal - supported
NMB in developing a financing model for emerging farmers in the seed, beans, rice and dairy
sector. In Mozambique, a twinning program was launched between Banco Terra and Rabobank
Brazil to improve the credit monitoring cycle in farmer financing.
48 Annual Report 2012 Rabobank Group
