12.40
6.40
6.80
5.80
0.80
1.20
7.80
8.80
9.00
0.20
0.20
12.40 7.90
7.50
Guides for gutter
Text colours
R 27 G 66 B 152
R 0 G 0 B 0
R 127 G 127 B 127
Background shading
R 242 G 242 B 242
R 225 G 235 B 244
R 227 G 244 B 236
8.40
Colour order (left to right, top to
bottom) R 59
G 110 B 143
R 251 G 193 B 119
R 115 G 198 B 161
R 103 G 153 B 200
R 186 G 163 B 171
R 191 G 191 B 191
R 127 G 127 B 127
R 201 G 48 B 146
R 27 G 66 B 152
R 84 G 7 B 91
R 248 G 152 B 29
R 241 G 237 B 238
R 254 G 234 B 210
R 211 G 227 B 237
Rabo Development A story on finance for food
Pierre Schonenberg Finance for Food
2
Rabo Development’s roots and mission
Rabobank was founded 110 years ago by farmers who did not have
access to financial services. Today, more than four billion people
worldwide still lack access to these services.
Rabo Development’s mission:
Drawing on Rabobank’s cooperative heritage and banking knowledge
in the Netherlands, Rabo Development aims to increase access to
financial services in developing countries that have substantial
potential in the food and agri sector.
Rabo Development
3
Rabo Development partner banks and advisory projects 2012
-
Rabo Development
Partner banks
Advisory projects
4
What does it take to become a successful F&A bank?
5
What does it take to become a successful F&A bank?
6
What does it take to become a successful F&A bank?
Emerging farmers
Commercial
farmers
Subsistance farmers
Commercial smallholders
(cash crops)
Relationship approach, often USD lending
Retail/SME approach with “agri twist”
lack of financials, need for benchmarking,
technical assistance on agro & financial skills
Scheme based approach (e.g. out grower
schemes), use Coops for coordination and
aggregation
Via SACCOs, coops, saving based loan schemes, etc
Traditionally
bankable
Traditionally
Unbankable
7
Macro:
Micro:
Sector
Policies:
Agri-
finance
products
Internal:
External:
AGRI Department HQ -
Branches
Agri-loan officers & Risk management
Product development Knowledge collection
& dissimination
Sector
policy making
Capacity building
8
Value chain approach should be leading
Farmers Coops Processors Traders
Asset Finance
• Input financing
• Raw Material
Collection Financing
• WHR financing
• Cooperative capacity
building
• Save For Loan
• Credit score cards
• Outgrower schemes
• Emerging farmer
programs
• Working Capital
• WHR financing
• Trade & Commodity
Finanance
Working capital
9
But a bank needs to serve more than only F&A:
Strategy review
Distribution channel management
Risk management
Information Technology (IT)
Product management
Human Resources
Agri value chain solutions
Agri sector knowledge
Value proposition(s)
Customer segmentation
Cooperative building
Etc.
10
Context of Rabo Development’s activities
Financial Services
Multilaterals
NGOs
Government
Access
to
financial
services
Equity Technical Assistance Management Services
Sharing international and cooperative banking knowledge and experience
Enabling Environment
Policy Dialogue Financial Instruments
Rabo Development
11
• Develop a supportive legal and regulatory framework
• Building consistent and reliable data sources
• Building capacity of financial institutions in partnership
• Funding / smart subsidies / risk sharing
• Networker/matchmaking
Role public sector:
12
• A F&A bank needs commitment and investment for the sector
• A F&A bank sees long term business in development
• A F&A bank in a developing country can only be successful in cooperation with carefully
selected (public) partners.
• Partnership must be based on the principle that each partner does what it can do
best;
Key messages
12.40
6.40
6.80
5.80
0.80
1.20
7.80
8.80
9.00
0.20
0.20
12.40 7.90
7.50
Guides for gutter
Text colours
R 27 G 66 B 152
R 0 G 0 B 0
R 127 G 127 B 127
Background shading
R 242 G 242 B 242
R 225 G 235 B 244
R 227 G 244 B 236
8.40
Colour order (left to right, top to
bottom) R 59
G 110 B 143
R 251 G 193 B 119
R 115 G 198 B 161
R 103 G 153 B 200
R 186 G 163 B 171
R 191 G 191 B 191
R 127 G 127 B 127
R 201 G 48 B 146
R 27 G 66 B 152
R 84 G 7 B 91
R 248 G 152 B 29
R 241 G 237 B 238
R 254 G 234 B 210
R 211 G 227 B 237
Thank you for your kind attention https://www.rabobank.com/en/rabo_development/index.html
Rabo Development