Promoting self-sufficiency
We make efforts to improve the future prospects of disadvantaged populations by teaching
them the importance of self-sufficiency. This form of development cooperation'dovetails
seamlessly to our bank's principles, history and background. It is why Rabobank Foundation has
been dedicated to empowering the weaker members of societies all over the world for forty
years. In the Netherlands, the Foundation focuses on vulnerable populations and in developing
countries in Africa, Asia and Latin America it helps small farmers to achieve independence.
To support them in doing just that, we provide this group access through cooperatives to loans
and other financial services, including savings accounts. They can use these funds to invest in
their farm, which helps them to improve themselves and develop the local economy.
In many rural areas, banks are thin on the ground. And even if there is a bank, it does not
provide loans to small farmers who have no fixed income or are unable to provide security.
In these cases, banks simply consider the risks involved too high. Shut off from other sources of
finance, farmers have no choice but to turn to high-interest lenders, which only lands them in
deeper financial trouble.
The Rabobank Foundation therefore provides loans for working capital, investments and other
purposes to cooperatives. It may do this in the form of a guarantee through a local bank or one
of Rabo Development's partner banks, with the objective of giving the cooperatives the funds to
lend to their members at fair market terms. Farmers can then use this capital to invest in livestock,
fertiliser, equipment or other essentials. The cooperative may also decide to professionalise its
own business operations and add more value to the supply chain. Rabobank's social fund
supported more than 400 projects at the end of 2014 involving more than 300 project partners,
the majority of which were producer cooperatives and savings and loan cooperatives spread
across 29 countries. Rabobank Foundation had more than EUR 28 million outstanding in loans
and guarantees at the end of 2014 and approved an amount in excess of EUR 3.8 million for
technical support and small donations during the year.
In order for organisations and farmers to become self-sufficient, they must be able to keep track
of their finances, which will allow them to save money and, over time, to make further
investments to increase their production levels, processes or other resources to help them raise
their standard of living. This is why financial education is a central focus for Rabobank
Foundation, along with training courses to help farmers improve their productivity.
Through one of its projects in Tanzania, Rabobank Foundation donates EUR 250,000 a year to
the NMB Foundation, which provides training in finance and organisation to hundreds of small
cooperatives.This initiative consequently coincides with agronomic projects organised in
cooperation with bank customers or a collaborative partner such as the FAO.
O Read more about forty years of Rabo Foundation here.
Partner banks in developing countries
Many people in developing countries, particularly in rural areas, do not have access to financial
services. Payments, savings and lending are far from commonplace for people in large parts of
the world, while these financial services are a key prerequisite for economic growth.
107 Meaningful cooperative
