Rabobank Foundation by pengtt

VIEWS: 711 PAGES: 24

									15 June 2009




2204058        Rabobank Groep
     Rabobank is a cooperative bank

    • Rabobank does not have shareholders; the capital of the bank
      is in a „dead hand‟. Not maximizing profitability is being
      pursued, but the delivery of „customer value‟.


    • Members of the 153 local banks appoint their board and are
      represented in CKV („Rabobank parliament‟), which meets
      quarterly with the executive board to decide on major issues.


    • Rabobank is now a large, international bank with EUR 612
      billion of assets and the only privately owned AAA rated bank.



2204058   2                                                        Rabobank Groep
          Rabobank International
          World wide leading food and agri bank

     • Rabobank‟s international market niche is food- & agri business
     • Customer Network: many of the global food companies
     • Expertise: dedicated agri-research team (80 professionals)
     • Agri products: weather derivatives, price hedging instruments
     • Rural retail banks in various countries




2204058    3                                                 Rabobank Groep
          Rabo Development
          Develop network of partner banks in Africa


   • Equity participation (minority position) in a bank that remains local
   • Board will be strengthened by Rabobank professionals
   • Rabobank will provide managers for Executive Board to
     complement local managers
   • A comprehensive technical assistance program will be executed through
     the deployment of Rabobank banking specialist
   • Aiming to expand lending to agriculture by combining Rabo agri finance
     expertise with local expertise


   For Rabobank this is a long term commitment, in which the development
   into a leading rural bank prevails over short term profitability



2204058    4                                                          Rabobank Groep
  Mission Rabo Development


          Rabobank was         Today, more than     It is our mission
          founded 110 years    4 billion people     to support
          ago by small         world-wide do not    financial sector
          farmers who did      have access to       development in
          not have access to   financial services   developing
          financial services                        economies




2204058   5                                                   Rabobank Groep
   Partner Banks Rabo Development in Africa




        Rwanda                           Tanzania
         BPR                               NMB




       Zambia                           Mozambique
       Zanaco                           Banco Terra




abobank Group
  2204058                                 Rabobank Groep
          Rabobank Foundation

          • 35 years history

          • Funding from profit of Rabobank Group

          • 25 focus countries

          • Member based producer organisations and
            savings / credit cooperatives




2204058   7                                           Rabobank Groep
          African Agri Sector: mission of
          Rabobank Foundation
          • Use experience and network of Rabobank to
            improve income of rural population

          • Focus points:
             – Cooperatives more than 100 years experience
             – Food & Agri
             – Banking / business experience
             – Banking networks
             – Client networks




2204058                                                      Rabobank Groep
           Activiteiten
           Rabobank Foundation India en Afrika
                                                          Burkina Faso            Uganda




                                           Mali
                                                                                                Ethiopië


                                     Senegal
                 India                                                                                  Rwanda

                                       Ivoorkust
                                                                                                    Kenia
                                                  Ghana
                                                            Kameroen

                                                                                                      Tanzania

            Landen waar de                                    Burundi
          Rabobank Foundation
                actief is                                                                   Mozambique
                                                                  Zambia

           9
               Rabobank Foundation       Rabobank Development            RI (klanten)   Terrafina      Progreso   (potentie)
2704093
          Approach:
            – „Business approach‟ to clients in developing
                countries (financial projections, annual
                targets, organisation structure etc.) in line
                with banking methodology
            –   Ensure long term impact through economic
                viability

          Instruments:
            –   Loans
            –   Guarantees (funded / unfunded)
            –   Grants for capacity building
            –   Technical assistance



2204058                                                  Rabobank Groep
          Four models of supporting agricultural sector in
          developing countries

             1.Traditional cooperative development

             2.Linking with (Rabobank) partner banks

             3.Linking with Rabobank International clients

             4.Combination 1,2 and/or 3




2204058                                                  Rabobank Groep
          1. Traditional approach

             – Assisting starting or growing marketing
               cooperatives with grants and TA
             – Emphasis on capitalisation and bankability
             – RF provides loan when cooperative is ready
               to absorb this
             – Often cooperation with local implementing
               party

          Bottlenecks:

             – Follow up in local banking system


2204058                                                  Rabobank Groep
          Succesful example: Dairy Sector
          Promotion in Tanzania




          • Supporting farmers cooperative (3300 members) to
            purchase shares in dairy processing
          • Investing in cattle breeding company to ensure supply of
            crossbred cows


2204058                                                         Rabobank Groep
  2. Linking with Partner banks of Rabobank

          – More effective monitoring and
            implementation through local presence
          – Contact with local bank from beginning
          – Early adaptation to local banking standards
            and requirements
          – (funded) Risk participation between RF and
            Bank

  Bottlenecks:

          – In some countries lack of viable economic activity and
            related technical and market knowledge
          – Local support structure needs further development
2204058                                                         Rabobank Groep
          Succesful example Rice Mozambique
          (proposal)

          • RF: risk sharing for loans to start-up cooperative
          • Banco Terra: lending and monitoring
          • Other donors: donated equity, supporting local
            organisations




2204058                                                  Rabobank Groep
          Succesful example: Emergent Farmers
          Project Zambia

     - There is a growing class of mid-sized farmers in Africa (“emerging
       farmers”)
     - They have the potential to develop into “commercial” farmers
     - Growth of agri-production should especially come from this farmer
                                   segment
     - They form an interesting target to our partner banks as they are
       open to innovation, growth oriented and need various financial
       services
     - One of the main bottlenecks to develop into a “commercial” farmer
       is lack of WC and technical expertise/management skills
     - Rabo & IFC believe that a combination of advisory & direct financing
       is the best approach to bridge the gap



2204058                                                           Rabobank Groep
          Where does the Emergent Farmer Fit in
          the Farmer Profile



                               COMMERCIAL   Considerable support
   No financial                             both financial and
   opportunities and not                    technical
   recognized by support       EMERGENT

   providers
                                                    Considerable
                              SMALL SCALE
                                                    support both
                                                    financial and
                                                    technical by
                              SUBSISTENCE
                                                    NGOs and
                                                    Government




2204058                                                  Rabobank Groep
          Current status + lessons learned


          - Program is partnership between Rabobank, Zanaco, ZNFU and IFC

          - Pilot launched in Zambia this season, now comprises 14 farmers

          - Yield improvement (maize) was significant especially at the higher
            end of the farmer group

          - Decision taken to expand to >50 farmers for 2009/2010 season

          - Target 300 farmers in +/- 5 years

          - Tight monitoring is key to success

          - Control is only feasible through branch network of Zanaco

          - Average loan is some USD 40k but growing

          - Discussions started with Banco Terra (Mozambique) for program
            roll-out
2204058                                                                 Rabobank Groep
          3. Involve private sector

             – Introduce viable economic activity to group
               of farmers
             – Formation of cooperatives / associations
               around this activity
             – Private sector provides technical know-how
               and marketing / processing outlet
             – Careful selection of private sector parties,
               often well-known clients of Rabobank




2204058                                                  Rabobank Groep
          Role of Rabobank Foundation

          – Support for capacity building of farmers
            groups to become independent member-
            based organisations
          – Reduced transaction costs for private sector
            as cooperative takes over technical tasks
          – Loan to farmers through private sector
            and/or cooperative
          – Linking with local banks (model 2)



2204058                                                Rabobank Groep
          Example: Cameroon Cacao and
          Paraguay Cotton

          • Technical and marketing knowledge provided by
            Rabobank International clients.
          • RF provides funding for support of farmers
            (Paraguay)
          • RF facilitates finance
          • Cameroon: additional key role for Rabobank
            Agribusiness consultancy RIAS




2204058                                              Rabobank Groep
          • Combination of these models is a new concept within
            Rabobank Foundation

          • Required is a committed private party, clear economic
            benefit for farmers and presence of local bank with the
            right attitude

          • Aim for triangle relationship between processor/off-taker,
            the outgrower/coop and the local partner bank

          • Shifting repayment risk from outgrower/coop to the higher
            rated off-taker/processor (tri-partite agreement)



2204058                                                           Rabobank Groep
          Example Mozambique Sugarcane

          • RF: support cooperatives, rehabilitation of land,
            risk sharing for loans
          • Banco Terra: financial infrastructure, lending,
            monitoring
          • RI Client (international sugar co): technical,
            marketing and processing support
          • RIAS: agribusiness knowledge




2204058                                                  Rabobank Groep
          Rabobank Foundation
          “ Making a difference “




2204058                             Rabobank Groep

								
To top