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Introduction Rabo Development & RIAS

Increasing access to financial services

October 7th, 2014

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Rabo Development within the Rabobank Group

Rabobank Foundation

- Development of cooperatives, microfinance and sustainable agri value chains in rural communities of developing countries - Project based through grants, guarantees, (soft) loans and consultancy

Rabo Development

- Create access to financial services in developing countries with F&A potential through rural retail banks - Investment in, and development of partner banks through financial investment, delivery of management services and technical assistance

Rabobank Group

- Rabo International - F&A Banking - Local Member Banks - Retail banking - Group entities - Leasing, insurance, etc.

Sustainable cooperative banking with involvement in the F&A value chain

Rabo Development

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Segmentation drives financing approach

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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

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Rabo Development partnerbanken en advieswerk in 2014

Figures partner banks 2013

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Country Bank Start Share Rabo

Offices Staff Customers Total Assets in € mln.

Tanzania NMB 2005 35% 152 2,860 1,481,000 1,396

Zambia Zanaco 2007 46% 64 1,643 619,000 728

China URCB 2007 9% 144 2,146 1,906,000 11,878

Paraguay Banco Regional 2008 40% 38 711 76,000 1839

Mozambique Banco Terra 2007 45% 9 157 25,000 43

Brazilië Sicredi 2011 19% 1,249 16,258 2,502,000 12,274

Uganda DFCU 2013 28% 30 665 133,000 351

Rwanda BPR 2008 35% 191 1,450 285,000 174

Mexico (2014) Miami (2014)

Finterra LAAD

From: To: • 600,000 customers 1,800,000 customers • No farmers reached 125,000 farmers reached • 1,500 staff 2,700 staff • 0 ATMs 500 ATMs • 0 cards Over 1.2 million cards • No mobile banking users 600,000 registered mobile banking

users • Limited product range Full product range

- Savings account - Payments / Collections/Trade finance - Payments - Lending - Savings and deposits - Treasury

• 100 branches 149 branches • Limited technology Real time online nationwide

Financial inclusion: example NMB 2005-2012

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Development Partner bank relationship

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time

volu

me

Business partnership

Development partnership

Commercial links • Trade & Commodity

Finance

• Corporate F&A clients

• Introduction of Dutch SMEs

Management services & TA

Commercial links

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Agribusiness Advisory (RIAS): focus areas

Agri finance Capacity Building

Supply chain Development

Agri Credit & Risk management & tools

Value chain financing

Agri commodity finance/WHR finance

Risk Sharing & Guarantee Instruments

Agri strategy development

Cooperative financing

Value chain projects & studies

Financial management

Agribusiness Advisory

Cooperative Capacity building

Cooperative governance

Member communication

Bankability

Legal & Regulatory issues

Capitalization Policies

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Ivory Coast – Cooperative development in cocoa sector

A 3-year Cooperative capacity building project with ECOM & PACTS

10 cooperatives in this program are trained in the areas of governance,

capitalization and cooperative management.

The program activities have significantly contributed to improve the

knowledge of farmers at section levels on their role and obligations within

the cooperative.

This has resulted in an increase of number of members fulfilling their

obligations such as paying their shares.

Introducing input financing scheme through Rabobank Foundation

Introducing cashless banking via Caisse D’epargne

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Vietnam – Agribusiness & cooperative development

Coffee sector: Cooperative capacity building project (Douwe Egberts, IDH,

RF)

Cocoa sector: Design financing solutions for coops (Mars, Cargill, RF)

Dairy sector: Supporting the largest dairy cooperative & supplier of

Friesland Campina Vietnam

Horticulture: Design finance scheme for investments by emerging farmers

Sacom Bank: MoU for technical support (Rabo Singapore/RD)

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Enabling environment is critical to agriculture & agri finance

Competitive Agri

finance

Legal & regulatory framework

Collateral availability

Capital markets

Business culture

Government support framework

Skill level

Infrastructure

Value chain organisation

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Agri Knowledge Transfer is Key

Knowledge Collection

Product/scheme Development

Agri Credit & Risk

Framework

Capacity Building

Agri Department HQ Strategy, Coordination & Control

Macro Sector policies Internal

Micro Credit manuals External

Branches & Agri Commercial Officers Operations & monitoring

Agri Wholesale

Agri Retail

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Dairy partnership Zambia

Milk Processor

Project structure

Dairy Coooperatives & Emerging farmers

RIAS

Rabobank Foundation

• Dairy partnership Zambia develop financing schemes for dairy farmers to buy cows score cooperatives on eligibility support Zanaco in financing process and provide working capital /investment loans to

cooperatives / emerging farmers. • Impact: Approx. 320 smallholder farmers and 7 coops financed • Target financing of USD 6 mln for w/c support and capex to facilitate production capacity

expansion

Raw Milk

Proceeds

WC loans & investment loans

50% risk sharing

Project advisory