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Netherlands P06
Developing countries P14
‘Proud of our cooperative
ventures’Pierre van Hedel Key figures
P03
Statistics
Jacques Diouf AwardReal commitment to smallholder self-reliance p.12
NetherlandsP06
Developing countriesP14
‘Proud of our cooperative
ventures’cooperative
ventures’cooperative
Pierre van Hedel Key figures P03
Statistics
Jacques Diouf AwardReal commitment to smallholder self-reliance p.12
RABOBANK FOUNDATION
SOCIAL IMPACT
REPORT 2017
Netherlands P07 FINANCIAL SELF-RELIANCE
P09 SOCIAL ENTREPRENEURSHIP
Developing countriesP15 AFRICA
P17 LATIN AMERICA
P19 ASIA
Together withP08 GELDFIT
P10 I-DID
P15 MUSONI
P17 CENCOIC
P19 PRADAN
Cooperation with the FAOP13 REAL COMMITMENT TO SMALL-
HOLDER SELF-RELIANCE
This magazine is published by Rabobank in cooperation with
Avance. The data in this publication refer to the 2016 fi nancial year
and are taken from an extensive research report. Those interested
in obtaining a copy of the report can email
Text: Schrijf-Schrijf
Design: Volta_thinks_visual
Copyright: 2017 Rabobank Foundation
People who want to get ahead. Who are fi nancially vulnerable, but working as
hard as they can to become self-suffi cient. It’s those people that we at
Rabobank off er a helping hand.
In the Netherlands, we’re working to help almost 600,000 men, women and
children. And in Africa, Asia and Latin America our eff orts benefi t some fi ve
million smallholders. Which programmes and resources are we deploying to
this end? And what kind of impact are we making? You can read all about it
in this magazine.
We’re not only one of the largest corporate foundations in the Netherlands; at
43 years old we’re also one of the oldest. As managing director I’m often asked
what I’m most proud of. That’s a diffi cult question, because there’s so much to
be proud of. But if I have to name just one thing, it would be: cooperation.
The cooperation within our team, that’s tight-knit and well-informed. And the
cooperation between this team and the professionals who off er us the benefi t
of their expertise. The cooperation between our foundation and partner
organisations. And of course, the cooperation among smallholders who see that
unity is strength, combining forces with one another and with our partners.
I’m also impressed by the fi nancial support we receive. And the trust and
confi dence it refl ects in us. Support that comes from local Rabobanks, from
Rabobank Netherlands and from Rabobank clients such as companies and
wealthy members of the public. And last but not least from Rabobank staff
who donate several euros every month. Without this support, we wouldn’t be
able to do what we do, and we’re very grateful for it. We hope that the results
we have achieved will bolster that commitment. So that we can extend our
work. And so that yet more people will be able to become self-reliant.
Pierre van HedelManaging director, Rabobank Foundation
‘Proud of our cooperative ventures
- internally and externally’
2 Rabobank Foundation content
SUPPORTED 43 Dutch organizations
23 focus countries* incl.Netherlands
288 foreign organizations
PROJECTS DEVELOPING COUNTRIES
TRAINING
4,681 staff and board members trained
208,945 farmers gained 70% were women
PROJECTS NETHERLANDS
109,329VOLUNTEER WORKERS
1,231 PEOPLECOMPLETED EDUCATION AND TRAINING
NUMBER OF PEOPLE GAINING ACCESS TO
SPORT 63,736NUMBER OF CHILDREN OFFERED SUPPORT
Almost 5,5 million people
TOTAL OUTREACH
INVESTED €27,967,240
(including investments by the Rabo Foundation Client Fund and
the Rabo Foundation Employees’ Fund)
Through our project partners
A V E R A G EINCREASE IN FARMER INCOMES13 c
KG
596,907 vulnerable people
Netherlands
4,886,869smallholders
Developing countries
* In 2016 we made exceptions in four extra countries Burkina Faso, Burundi, Mali and Myanmar.
5,608MINIMUMINCOME F A M I L I E S
RABOBANK FOUNDATION
Impact Insights 2017 Each year Rabobank Foundation measures the impact of its activities. We do this together with our project partners, who contribute to our research.
3Rabobank Foundationimpact
See the i-did project on page 10
596,907 VULNERABLE PEOPLE
109,329 VOLUNTEER WORKERS
Foundations Social enterprises
Donations
Loans
€2,739,000
€290,000
Together with: 103 local banks
43
€ 3 million
Rabobank Foundation: what we do
How we workBoosting people’s self-reliance all over the
world. That’s Rabobank Foundation’s most
important objective. To achieve our goal, we
support organizations in the Netherlands and
in 22 developing countries in Africa, Asia and
Latin America. We do so with funds, expertise
and the active deployment of our network.
4 Rabobank Foundation What have we achieved?
How we help people in the NetherlandsIn the Netherlands, we work together with
non-profi t organizations and social enterprises
working for and with vulnerable people.
That way we ensure that people who are
disadvantaged on the labour market fi nd a
suitable job. Or that people regain fi nancial self-
suffi ciency. Just as we do abroad, this is done
through the deployment of funds (donations or
loans), expertise and our network.
Paid and/or meaningful work
Financial health
Social network
Vitality
ULTIMATE OBJECTIVE: CONTRIBUTING TO SELF-RELIANCE THROUGH
Prospects Self-confidence Pride Self-esteem
PEOPLE WHO GAIN SUPPORT THROUGH OUR PROJECTS HAVE MORE
Go to page 16-17
See collaboration with Musoni on page 14-15
5Rabobank FoundationWhat have we achieved?
€ 25 million€10,170,000
€6,306,000
€3,749,000
€3,696,000
€1,018,000
INCOME
SELF-RELIANCE 4,886,869 FARMERS
Healthcare Food Housing Education
Producer organizations
Savings and credit organizations
Investments in 22 countries
Microfinance
Trade finance
Technical assistance
Guarantees
Donations
Latin America Africa Asia
54% 32%
24% 38%38%
TRAININGENTRAININGENTRAININGENTRAININGEN
208,945 farmers
4,681 board members and sta�
30% men70% women
288
How we support farmers in developing countriesIn developing countries, smallholders such
as dairy or coff ee farmers are often affi liated
to savings and credit cooperatives or
producer organizations. These organizations
are on hand to help them with loans, training
and sales support services that promote their
self-reliance.
Unfortunately, such organizations often lack
suffi cient funds and expertise to be able to off er
optimum support. With money, know-how and
an extensive network, Rabobank Foundation
helps these organizations to work more
professionally and effi ciently, so that they can
off er farmers better services.
We off er the organizations support and fi nancial aid in fi ve diff erent ways1. Guarantees, which enable organizations
to obtain loans more easily from local
fi nancial institutions.
2. Loans, which enable the organizations to
extend micro-credits to farmers. The
farmers use these loans to invest In their
business.
3. Trade fi nancing, which enables
organizations to bridge the gap between
purchasing produce from farmers and
selling it on the local or export market.
Thanks to this short-term fi nancing,
organizations are in a position to buy
more produce from farmers and to pay
them on time.
4. Technical assistance, we hire experts to
train smallholders and management so that
they can boost productivity and enhance
their self-reliance.
5. Incidental donations, to help farmers
initiate new activities.
coffee dairy cocoa horti-culture
fruit & cotton
other
Financial self-reliance
Roelie van Stempvoort
was one of the founder
members of the Rabobank
Foundation’s programmes in
the Netherlands. She is
programme manager for the
programmes ‘All kids take
part’, ‘Financial self-reliance’
and ‘Sport without limits’
‘We help people to become fi nancially self-reliant’The Netherlands numbers more than 3,4 million people in fi nancial diffi culties. Together with
other organizations, Rabobank Foundation aims to boost Dutch people’s fi nancial self-reliance.
Programme manager Roelie van Stempvoort explains how.
‘All kids take part’The number of children reached by a project5,608
society some €11 billion annually, for example
through absenteeism caused by fi nancial
worries plus the costs incurred by local
authorities for social relief or youth care.’
QA
How does Rabobank Foundation
attempt to prevent � nancial problems?
‘By, for example, supporting programmes that
help people to budget successfully. In the
‘Financial Self-suffi ciency’ programme, we’re
working together with national partners such
as the National Institute for Family Finance
Information Nibud, community organization
Humanitas, debt aid foundation
QA
How big is the problem of debt and
poverty in the Netherlands?
‘There are a large number of problem debts in
the Netherlands. One in fi ve Dutch households
are so far in arrears that they can be termed as
having problem debts.’
QA
How debilitating is it to have � nancial
problems?
‘Financial problems can happen to anyone, and
the impact is huge. People can become socially
isolated and stop using healthcare services.
Children are unable to join in with their peers.
What’s more, fi nancial problems cost Dutch
SchuldHulpMaatje and social inclusion
cooperative Mee.nl.
We support initiatives that contribute towards
building fi nancial awareness as well as
helping to further develop fi nancial awareness
programmes. In this way, we reached out to
some 54,000 people in 2016. We trained
volunteer workers in Thuisadministratie,
which supports people in managing their
household accounts, so enhancing their ability
to respond to requests for help. And we
boosted money awareness among young
people through a series of lesson programmes
on managing money.’
53,658 people helped
31,352 Lessons programme/awarenessDealing with money
17,056 Assistance with home �nances
5,000 Other �nancial self-reliance
SpecificationNumber of people reached:TOGETHER WITH 5 ORGANIZATIONSOUTREACH TO:
53,658P E O P L E
6 Rabobank Foundation
QA
Why is awareness so important in
tackling � nancial problems?
‘People only become fi nancially self-reliant
once they know or learn what healthy money
behaviour is – and why it’s important. It’s also
key they gain an insight into their fi nancial
situation, the possible consequences of being
in debt and what kind of fi nancial products and
services are available. We always support
projects and programmes that help to foster
such awareness.’
QA
What does Rabobank Foundation do
for children growing up in minimum-
income households?
‘That holds true for one in eight children in the
Netherlands. For them we run the ‘All kids take
part’ programme, working together with the
Youth Culture Fund, Youth Sport Fund and the
Leergeld foundation. Thanks to this
programme, more than 5,500 children were
able to take part in school activities or become
members of a sports club or cultural institution
in 2016.’
QA
How do you keep your programmes up
to date?
‘Through ongoing dialogue with our project
partners. For example, last year we organized a
brainstorm session with our partners Nibud,
SchuldHulpMaatje and literacy promotion
foundation Stichting Lezen en Schrijven. We
also invited health insurers Zilveren Kruis and
Achmea as well as telecoms provider T-Mobile
and energy company Nuon. Together we
wanted to explore the issue of how we could
identify money problems at an even earlier
stage and help prevent them.’
QA
What insights did you gain from the
session?
‘Two key insights came to the fore. Stichting
Lezen en Schrijven showed us how many
fi nancial problems stem from poor literacy.
And SchuldHulpMaatje contributed valuable
insights into Dutch neighbourhoods where
the risk of problem debts is greatest. Using
this information we were able to reach out to
people in fi nancial diffi culties. At the end of
the day we came to the conclusion that it was
time for a fresh initiative, and that’s led to the
creation of a new online platform: Geldfi t.nl.’
(See box).
QA
Rabo Foundation as a driving force?
‘Certainly. As a foundation we’re in a
position to give new initiatives a chance and
to foster awareness within the Rabobank
organization. We played a key role in setting up
Geldfi t.nl by facilitating the dialogue and
fi nancing the pilot. That was important, but we
haven’t stopped there. We’re now involved in
helping to devise a way of rolling out the
initiative further nationwide and making it
independent.’
Geldfit – How it works in practice
Financial problems resolvedA family from Zwolle with three children was in fi nancial diffi culties. Matters were made worse when their debt administrator failed to pay their health insurance premiums for six months as a result of which the family looked to be forced to foot the bill for their children’s high care costs themselves.
Via the online platform Geld� t.nl the family came into contact with SchuldHulpMaatje Zwolle. The organization helped them to stabilize their � nancial situation and to change their administrator. What’s more, SchuldHulpMaatje Zwolle had close contacts with health insurer Zilveren Kruis’s escalation team, which allowed all the parties involved to
work together in � nding a solution. The family received restitution for the cost of the children’s medical care and was able to work towards a debt-free future.
How Geldfi t.nl worksThe objective of Geld� t.nl is that people with money worries don’t end up In � nancial di� culties. They � ll out a short questionnaire on the website, and are given a list of tips, tools and voluntary organizations in their area able to help them with their � nancial a� airs. Partners in the initiative comprise national and regional organizations such as SchuldHulpMaatje, Huma-ni tas, Stichting Lezen en Schrijven, Zilveren Kruis, Sallandse Dialoog and Rabobank Foundation.
7Rabobank FoundationNetherlands
Social entrepreneurship
Alongside selling products or services, many companies are keen to
serve society – by supporting the vulnerable in society, for example.
‘The number of social enterprises is growing and they represent a
key player in society,’ says Nynke Struik, programme manager at
Rabobank Foundation.
1,231 Training completed
395 On-the-job training
508 Fixed and temporary employment contractd
131 Sheltered placement
217 Internship
Transition into workEducation completed
Nynke: ‘The state has too few resources to
solve all of society’s problems. That’s why
it’s good that the number of social
enterprises in the Netherlands is growing. They
off er added value for society. After all, social
entrepreneurs off er innovative solutions for
social challenges.’
Focus and expertise‘We help social entrepreneurs to become self-
suffi cient’, Nynke explains. ‘We focus particularly
on companies that off er places within their
organization to people who are disadvantaged
in their eff orts to fi nd work. Examples are men
and women who have been on welfare for a
long time, young people without qualifi cations
and people who are learning impaired, have a
physical impairment or suff er psychological
problems.’
The majority of social enterprises train these
vulnerable people and supervise their transition
into paid work. ‘We feel it’s important that
everyone has the opportunity to work’, says
Nynke. ‘Because having a job means having an
income, access to a social network and
generates self-esteem.’ Among other things,
Rabobank Foundation supports social
enterprises by off ering them expertise. ‘Through
us, they can follow a Rabobank MiniMaster
course or a course in Social Entrepreneurship at
Nyenrode Business University’.
That’s very useful, says the programme manager:
‘Social entrepreneurs who are starting out can
often use extra help in business management.’
Money and respect‘Businesses starting out often have high initial
costs due to the fact that they invest heavily in
training their workforce. That means they can’t
always easily access fi nance,’ says Nynke. In many
cases they can obtain credit from Rabobank
Foundation. ‘We agree targets with them – such
as the number of people that they manage to
transition into paid work via their enterprise.’
For Rabobank Foundation in the Netherlands,
extending credit is new. ‘Up until 2016, we only
gave donations to this type of enterprise,’ says
Nynke. ‘My background is in commercial lending
and I believe that social entrepreneurs, too,
should work towards a profi table business
model and thus should be in a position to pay
interest and redeem the principal. By giving
them a loan, Rabobank Foundation is taking
social entrepreneurs seriously, viewing them as a
real business. That’s a form of respect. What’s
more, when loans are paid off it means we have
more funds to support a greater number of
initiatives as a result of which we can make an
even bigger impact.’
‘Helping entrepreneurs achieve their goals’
Nynke Struik
has been working at Rabobank
Foundation since 2016 as
programme manager social
enterprises. Prior to joining the
foundation, she worked in the
commercial credit sector and has
always been active in fi nancing
enterprises from small to large. Number of people who successfully completed a course of education or went on to find work 2,482
8 Rabobank Foundation
1. What is i-did?Founder Mireille Geijsen: ‘i-did makes a wide
range of design products, from handbags to
laptop sleeves, which are sold throughout the
Netherlands. We make them using recycled
textiles. The goods are produced in part by
vulnerable people who have diffi culties in
gaining a foothold on the labour market. At i-did
they acquire employee skills, grow as people
and rediscover their enthusiasm for work.’
2. Why does Rabobank Foundation support i-did?Rabobank Foundation programme manager
Nynke Struik: ‘i-did’s social objective dovetails
with the Foundation’s mission. And we saw
that they urgently required fi nancing. Mireille
had attracted furniture giant Ikea as a new
client, and for this she needed to ramp up
production and train new staff . So we aided
her enterprise with a loan, as part of a
co-fi nancing arrangement with the DOEN
Foundation.’
3. What was the social impact generated by the loan?Mireille Geijsen: ‘We made an agreement with
Rabobank Foundation that through our
company more people would transition into
education or paid work. To achieve this
objective, we take people on for six months of
work and training. We help them gauge where
their talents lie and what steps are required
for progress on the labour market. During
this time, we ready them for participation in
training and education or to apply for a job.
Onward placements are already up from 0 to
25 percent.’
4. And what does the future bring?Nynke: ‘i-did is achieving good results. The
challenge now is for the enterprise to remain
profi table and to grow, so that it can
generate an even greater impact.’ Mireille
Geijsen: ‘We look forward to a bright future.
The cooperation with Rabobank Foundation
is an important support. They’re accessible,
enthusiastic, think along with us, identify
opportunities and act as ambassador. The
Foundation is an unbelievably good partner
to have.’
4 QUESTIONS ABOUT I-DID Social enterprise rekindles people’s will to work
Netherlands 9Rabobank Foundation
Highlights
6 highlights Molly Koyekyemga (UGANDA)ACPCU member
‘Producer organization ACPCU taught me
how to boost the yield and quality of my
coff ee crop. I learned for example that coff ee
benefi ts from being grown alongside other
crops. That’s why I now also grow bananas
and eucalyptus trees. I was also able to get a
loan via the ACPCU which I used to invest in
soil improvement.’
Worldwide, we reached almost 5,5 million people.
Here we share some of their personal stories.
10 Rabobank Foundation
Walter (NETHERLANDS)Participant in ITvitae training programme
‘ITvitae’s Software Development training programme gave
me a fresh start. Due to my autism, I ended up on welfare
support several years ago. Getting off benefi ts is diffi cult but
this course will help me. I’m going to work like crazy for a job
as an ICT professional!’
Bui Thi Hoa (vietnam)Member of VietED
‘My husband and I were able to get a loan from VietED, that we
used in part to buy artifi cial fertilizer. I was also able to follow a
training course at VietED. That course taught me how to use the
right amount of fertilizer to boost production and what the best
time is for sowing to obtain bigger fruit. Our yields have increased
and our income has gone up.’
James Owino (KENYA)CFO, Musoni
‘Musoni could never have become so successful without the
help of the Rabobank Foundation. We are keen to further
strengthen and expand our partnership so that we can
have an even greater social impact on the lives of small-scale
farmers in Kenya.’
11Rabobank FoundationHighlights
Ujang Jalaludin ( INDONESIA)KPGS member
‘During one of the KPGS training courses I learned how to grow
a better type of grass to boost milk yields. Thanks to this grass
and the concentrate feed from the cooperative, my cows now
produce one to two more litres of milk daily.
Vilma Moscoso Ayte (PERU)Member of Qori Wasi
‘It’s imperative for us as producers to have a
communal place for the sale of our produce and
to be able to borrow money. Banks are not willing
to lend to us, or set impossible requirements as
regards collateral. Thanks to Qori Wasi we’re able
to take out small loans on reasonable terms. That
way I was able to obtain a loan to build a shed for
my chickens.’
Sociaal ondernemen
to farmer self-reliance’
FAO
In 2015 Rabobank Foundation decided to take
part in the Improved Productivity and Profi tability
Program of the United Nations’ Food and
Agriculture Organization (FAO). The farmers
taking part in the programme require capital to
invest in their agricultural businesses. Thanks to
fi nancing from the Rabobank Foundation and
training programmes by FAO, the participating
farmers are able to buy good seed and hire
people to sow and to weed. As a result, they are
able to utilize more of their land as well as
boosting the productivity per square metre. One
of the women to benefi t from the scheme is
Beatrice Nthambi Kimilu.
GOAL 1An end to poverty
In 2016 Rabobank Foundation reached almost 4,9 million small-scale farmers in developing countries and 590,000 vulnerable people in the Netherlands.Rabobank Foundation invested almost €28 million in total over 2016, of which €25 million in projects in developing countries and €3 million in projects in the Netherlands.
GOAL 2An end to hunger
In 2016 Rabobank Foundation invested in 155 producer organizations and 91 savings and credit institutions in 22 di� erent countries. As a result, these organizations were able to o� er more services to small farmers. In this way Rabobank Foundation stimulates technological development among farmers, enabling farmers in developing countries to produce more and to produce more e� ciently.
GOAL 3To foster the health and welfare of people of all ages
In 2016 Rabobank Foundation supported seven organizations in the Netherlands that promote sporting activities for people with physical and/or learning disabilities. Together these seven organizations reached over 60,000 people.
GOAL 8Decent jobs and economic growth
In 2016 Rabobank Foundation invested in technical support for farmers in developing countries. More than 208,000 small-scale farmers bene� ted, among others through training courses on agricultural methods.
GOAL 17Partnerships for the objectives
Rabobank Foundation actively seeks partnerships to work together to achieve the sustainable development goals. A good example of this is the partnership with the Food and Agriculture Organization (FAO).
OUR CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS
12 Rabobank Foundation
13Rabobank Foundation
Rabobank Foundation is working together with the world food
organization of the United Nations (FAO) to boost the self-suffi ciency
of farmers in developing countries. The FAO rewarded us for our
contribution with the Jacques Diouf Award 2016-2017.
to farmer self-reliance’ ‘Real commitment
Rabobank Foundation wins Jacques Diouf Award
Once every two years the FAO
presents the Jacques Diouf Award
to organizations that have made an
important contribution to improving food
security. Rabobank Foundation was awarded
the prize for its technical and fi nancial
support to producer organizations. These
organizations don’t qualify for micro-
fi nancing or donations, but fail to obtain
funding from commercial banks. ‘Rabobank
bolsters the self-reliance of small-scale farmers
and boosts global food security,’ according to
the jury.
Our impact Together with the FAO Rabobank Foundation
works on projects that off er smallholders access
to fi nancial services, agro-inputs (such as
pesticides and natural and artifi cial fertilizers),
agricultural technologies and other services. As a
result the farmers are able to produce more
effi ciently and boost their incomes. In this way
we contribute to the Sustainable Development
Goals (SDGs) of the United Nations (UN). The UN
objectives focus on ending extreme poverty, on
health, education, clean drinking water,
sustainable energy, reduction of inequality and
tackling climate change.
Improved income Together with the FAO the Rabobank
Foundation aims to make a diff erence for
thousands of farmers in developing countries.
Examples of the impact we had include the
realization of trade fi nancing for 1,500 farmers
in Kenya and training 400 farmers in Ethiopia. In
Tanzania 500 farmers gained access to a new
trading system, as a result of which they now
enjoy an improved income. And 2,000 young
farmers in Uganda gained fi nancing.
Weakest link Annamaria Pastore, responsible at FAO for
cooperative partnerships with the private
sector, says that the cooperation with the
Rabobank Foundation is one of the most
successful to date. ‘The Rabobank Foundation’s
work is very concrete and hands on – the
organization works primarily at a local level.
In addition, the Foundation is always prepared
to look for innovative solutions and to tailor its
approach. Their commitment to supporting
farm businesses that are not easily fi nanced is
commendable. Rabobank Foundation is
really committed to the self-suffi ciency of
these farmers, who represent the weakest link
in the chain.’
‘The Rabobank Foundation’s work is very concrete and hands on, and they are always prepared to look for innovative solutions’
ANNAMARIA PASTORE FAO
via a mobile phone’‘Access to money
Through Rabobank Foundation’s aid to 91 savings and credit organizations and micro-fi nancing
institutions, small-scale farmers from Africa and elsewhere gain access to fi nancial services
more easily. That facilitates their ability to borrow and invest in their businesses. ‘One of the
organizations making this possible is Musoni. And what’s more, they do it in a very
innovative way,’ says Madelon Pfeiff er, programme manager at Rabobank Foundation.
In Kenya, many smallholders have few savings
and live in remote areas. That makes access to
fi nance even more diffi cult. In 2009 Musoni
came up with an interesting concept for issuing
credit to this target group in particular. Via a
mobile phone. That way it’s easier to borrow,
because no cash or paperwork is required. In
addition Musoni visits the farmer with a tablet
to make the credit application so that the
farmer needn’t go to the bank which is often
situated many miles away. In this way Musoni
launched a new method of fi nancing for small-
scale farmers onto the market.
Very fi rst fi nancial backer‘We believe in Musoni’s innovative solution.
That’s why we decided in 2009 to become
their very fi rst fi nancial backer,’ says Pfeiff er.
‘The support was key to Musoni’s growth in
Kenya. Because fi nancing via a mobile phone
didn’t yet exist in practice, the organization
found it diffi cult to attract funds from other
parties. Rabobank Foundation took part
because we believe that good innovation
can benefi t farmers and their families. A key
condition for our loan to Musoni was that they
would off er farmers equitable interest rates.’
This is an example of how Rabobank
Foundation also focuses on innovative projects.
Innovation is crucial, because it can off er
solutions to small farmers, such as easier access
to loans, improved insight into the terms of a
loan and the ability to gain credit faster. ‘But
innovation costs both time and money,’ says
Rabobank Foundation Rabobank Foundation works together with Musoni* in Kenya
Pfeiff er. ‘This new way of gaining credit was also
new for the farmers. Many farmers weren’t used
to mobile money and initially thought that they
needn’t pay it back. So Musoni off ered
workshops to create the awareness that it
wasn’t possible to borrow without repayments.
Musoni also found it helped to send sms
messages to remind farmers they needed to
make repayments. In addition farmers can
check the status of their loan via their mobile.’
Families benefi t‘Farmers not only benefi t fi nancially from a loan
from Musoni. It also has positive results socially.
As soon as the farmer’s business improves, he’s
able to pay his children’s school fees, for
example. Other farmers see that and want the
same. In this way, savings and credit
organizations or micro-fi nancing institutions
that do their work well garner more and more
members, who increasingly become more
prosperous. That leads to more savings being
managed for them by the organization, that can
in turn support more farmers and, in the longer
term, stand on its own two feet.’
Madelon Pfeiff er
has been working at
Rabobank Foundation
since 2015 as programme
manager Africa.
How does Musoni work?Each member fi rst registers with mobile money platform M-PESA, which is extremely popular in Kenya. Musoni has linked its systems to M-PESA. After registration, members are able to apply for a loan from Musoni, either individu-ally or as a group. Loan offi cers help them with their applications; monitoring their investment plans, explaining how ‘mobile money’ works and checking the required documents and/or digital documents. Once everything is in order, Musoni furnishes the credit.
*Musoni: an abbreviation of ‘mobile usoni’, which is Swahili for ‘mobile future’.
14 Rabobank Foundation Financing
REACHED 1,410,421SMALL FARMERS IN AFRICA
1. What are they?Internationally they’re known as Savings and
Credit Cooperatives (SACCOs). Small-scale
farmer can become members of a SACCO. This
organization off ers them fi nancial services such
as loans (often micro-fi nancing), savings
accounts and insurance policies. The farmers are
also off ered training to help them to prudently
manage money and risks.
2. How do they help farmers? The services off ered by SACCOs allow small-scale
producers to grow their farming businesses and
to improve their standard of living. Savings and
credit organizations are particularly popular in
areas where mainstream banks fail to off er small-
scale farmers any suitable fi nancial services.
3. In what ways does Rabobank Foundation support these organizations? We help 91 savings and credit organizations in
Asia (29%), Africa (45%) and Latin America (26%)
to grow, to professionalize and to become more
effi cient. To this end we off er expertise, for
example on good management. In addition we
extend loans to SACCOs so that they can issue
microfi nancing. In 35% of cases we are the initial
fi nancial backer.
SAVINGS AND CREDIT ORGANIZATIONS
3 QUESTIONS
Uganda
Rwanda
Tanzania
Senegal
Ivory Coast
Ghana
109project partners
8number of focus countries in Africa where projects are operating
1,410,421farmers reached
€8,138,856in investment
85,739people were trained
AfriCa
% of savings and credit organizations off ering the service 2014 2015 2016
Crop insurance 4% 4% 5%
Life insurance 23% 26% 30%
Health insurance 12% 13% 13%
Credit insurance 46% 40% 53%
Advances on credits receivable 14% 5% 13%
Money transfers (national) 38% 32% 36%
Money transfers (international) 14% 13% 10%
Financial education 57% 63% 59%
Agricultural training and supervision 20% 14% 24%
Product processing 9% 11% 14%
Training 74% 79% 74%
O� ering services to members is key for savings and credit organizations. It’s an investment in the self-su� ciency of members and a way of boosting members’ trust. In addition, these services can help members to repay loans on time or to save more. That’s in the interest of both the savings and credit organizations and their members.
Ethiopia
Kenya
15Rabobank FoundationDeveloping countries
45%
Global region where savings and credit organizations operate
91savings and credit organizations
Latin America Africa Asia
29% 26%45%
Global region where savings and credit organizations operate
91savings and credit organizations
Latin America Africa Asia
29% 26%
Knowledge
a better future’‘Better coffee =
Rabobank Foundation supports 155 producer organizations. Of these
44% are coffee cooperatives, mostly from Latin America. Our expertise
can be of immense value in helping cooperatives expand, as in the case
of CENCOIC in Colombia. A chance encounter during a coffee trade fair in
Seattle marked the start of a partnership.
‘A a small coffee farmer in Colombia you
come up against a range of obstacles,’
says Isabel van Bemmelen, programme
manager at Rabobank Foundation. ‘Take the
Cauca region, for example, an area that for many
years has been ravaged by rebel movement
FARC. Many farmers there have been driven off
their land. Nor are banks willing to lend to the
indigenous population. The CENCOIC
organization offers solutions, and we help them.’
‘Our support for producer organizations is
growing. In Latin America, we’re mainly involved
with cooperatives for small-scale indigenous
coffee farmers. Like the Central Cooperativa
Indigena de la Cauca – CENCOIC for short.
During the Specialty Coffee Expo in Seattle in
2013 the manager of CENCOIC told me that his
cooperative lacked access to financing. His
account had such urgency that just a week later I
was on my way to the Colombian region to pay
them a visit. That’s when our partnership began.’
Better coffee‘Our aid to CENCOIC included financing for a
coffee laboratory. In this lab the cooperative
tests the quality of the coffee. That’s imperative
in order to distinguish between the different
qualities of coffee and subsequently to identify
the best markets for the different coffee grades:
export or local. That’s because exporters pay
more than buyers on the local market, and also
more than the Colombian government, which
buys up all the unsold coffee at a standard rate,
regardless of its quality.
‘CENCOIC helps all its members to produce
good quality coffee; preferably organic because
that’s better for the environment and often
more attractive for export. An increasing
number of farmers are managing to attain the
required level of quality, but not all. Coffee that
CENCOIC is unable to sell on the export market,
in part because of this poor quality, it sells
locally and to the FNC.
‘Together CENCOIC and Rabobank Foundation
conducted research into the type of financial
support most suited to this differentiation in
sales markets. It transpired that loans in local
currency were the best for sales on the local
market, while trade financing in US dollars was
best for export. We adhere to these insights in
furnishing credit. As a result CENCOIC is able to
find buyers for its coffee, even though the
demand for fair trade coffee has since declined.’
Better future‘CENCOIC’s approach has attracted an
increasing number of farmers from the region.
They are keen to become members of a
cooperative that will always buy their coffee –
even if that’s partly at local market prices or
below. The price is higher and above local
market rates when the coffee is of good quality.
‘Thanks in part to our support, CENCOIC has
grown from 2000 members in 2013 to three
thousand now. The different types of loans
enable the cooperative to sell differing qualities
of coffee on the most appropriate market. This
strengthens the cooperative’s bargaining power.
By offering technical support to farmers around
agronomics, the cooperative also promotes the
production of better quality coffee. That
ultimately results in a better coffee price for
CENCOIC’s members, so helping them to
achieve self-sufficiency sooner.’
Isabel van Bemmelen
worked as programme
manager Latin America
until November 2017,
when she became a
director at Progresso.
16 Rabobank Foundation
3 QUESTIONS
1. What are they?They’re cooperatives made up of small-scale
producers: farmers who frequently farm less than
a single hectare. These cooperatives buy up the
production of all their members and can therefore
bring large volumes to market. That sparks the
interest of large-scale buyers and can generate
advantages of scale that an individual farmer
would never have been able to achieve.
2. How do they help farmers?Producer organizations sell their members’ produce
at the best possible price on the best possible
market. Many organizations utilize part of the
profi ts to improve their services, off ering members
training and advice about new production methods
and other issues. In addition members may be able
to borrow farm implements or gain credit.
3. How does Rabobank Foundation support these organizations?We support 155 producer organizations; in Asia
(43 percent), in Africa (28 percent) and Latin America
(28 percent). We do this by helping them grow and
become more professional and effi cient. To this end
we provide expertise, via Rabobank experts or from
others. In addition we deploy our international
network and make funds available for technical
assistance and loans for micro-fi nancing.
PRODUCER ORGANIZATIONS
Brazil
Peru
Bolivia
Ecuador
Colombia
NicaraguaMexico
LATIN
AMERICA
Export figures 2015 2016
Number of � rst-time exporters 4 4
Average export volume (in kg) 519,814 670,465 kg
Average % export 29% 37%
% of organizations with higher exports No data available 62%
Average % export 29% 37%
Producer organizations (POs) can often gain higher prices for their produce on the export market, as a result of which they can pass on a better price to the farmer.We see a growth in export at the POs we support.
Coffee Dairy CocoaBananas and cotton
Rice, maize and other grains
+ 0,25 - 0,01 + 0,33 + 0,05 + 0,02
Average premium over the local market price, in euro’s per kilogram
The farmer bene� ts from selling his produce to the PO because the organization is able to sell it on a better market. In this way the farmer gets a better price and boosts his income.
70project partners
7number of focus countries in Latin America where projects are operating
620,190farmers reached
€9,236,219in investment
7,029members of cooperatives trained
17Rabobank FoundationDeveloping countries
28%
Global region where producer organizations operate
155producer organizations
Latin AmericaAfrica Asia
43% 28%
in less than 10 years’ ‘Financially self-suffi cient
How do you help organizations really get ahead? Together with Indian
NGO Pradan, Rabobank Foundation set up a cooperative: Madhya
Pradesh Women Poultry Producers Company. Thanks to the partnership,
in 2018 the cooperative can stand on its own two feet fi nancially.
Rishabh Sood explains how. Rishabh, an Indian,
is a local staff member for Rabobank Foundation.
QA
Why did Rabobank Foundation team up
with Pradan in 2009?
‘Pradan is a non-governmental organization
(NGO) in India. Together with them we set up a
cooperative model, to which thousands of
small poultry farmers are affi liated. Around
10,000 women are organized in over twenty
poultry cooperatives that together generated
more than €45 million turnover in 2016.
Rabobank Foundation decided to partner
Pradan in 2009 when farmers appeared to lose
interest in the poultry sector. The poultry
farmers needed to invest in their businesses,
but were unable to obtain loans.’
QA
In what ways do you work together with
Pradan?
‘Indian legislation prohibits Rabobank
Foundation from extending direct loans, but
we are able to stand as guarantor. Because
Rabobank Foundation assumes part of the risk,
local fi nancial institutions are more inclined to
lend to farmer cooperatives and in this way,
they are able to build up a track record with a
local fi nancial institution. However, to realize
this a strong local network is required, that also
closely monitors loan repayments. In addition,
we advise the cooperative on how it can
develop further, we share our expertise on the
agricultural sector and we bring Pradan into
contact with Dutch poultry experts.’
QA
What have the cooperatives achieved
over the last eight years?
‘A lot. With the initial loans of €1500 per farmer,
the farmers built poultry sheds and the
cooperative improved its operational and
fi nancial systems. The farmers also shared their
know-how with other farmers via the National
Smallholder Poultry Development Trust, which
we helped set up. In addition, Dutch poultry
experts on an exchange instructed the farmers
on various aspects of housing poultry, feed,
drinking water systems and vaccinations. The
latest long-term loan has been used by the
farmers to set up a modern feed concentrate
facility, aimed at boosting their production.’
QA
How out of the ordinary is this project
for Rabobank Foundation?
‘Pradan’s type of cooperative model is unique
and so it’s diff erent from the normal cooperatives
we work with. With our cooperative roots, we felt
it would be interesting to help evolve this model.
But our quest to fi nd a way of off ering fi nancing
products to our Indian partners was also interest-
ing. We’re now using the outcome of that search
– the guarantee – extensively throughout India.’
QA
What have your learned from the
partnership with Pradan?
‘That a cooperative should maintain suffi cient
reserves to be able to cope with extreme price
fl uctuations. Only then can you off er farmers
stable prices as a cooperative. If prices fl uctuate
too much, farmers can suff er major problems.
At Pradan we also remarked how important it is
that the affi liated poultry businesses act as one.
A cooperative is like a family, because you have
the same objectives. And you’re dependent on
one another because you’re investing together.’
QA
What does the future hold?
‘It’s looking good! Our aim was to render
the Madhya Pradesh Women Poultry Producers
Company self-suffi cient. We expect this to be
achieved in 2018. That would mean that the
cooperative has become fi nancially independent
in less than ten years. And that the partnership
can justifi ably be labelled a success.’
Rabobank Foundation works together with Pradan in India
Rishabh Sood
is manager of rural and
development banking. He
lives and works in India,
where he has been
Rabobank Foundation local
staff member since 2012.
18 Rabobank Foundation Co-operation
Rabobank Foundation
Rabobank Foundation in IndiaOur know-how and our networks. That’s what
gives Rabobank Foundation added value in
developing countries. We know all about
cooperatives, banking and the agricultural
sector. We deploy this know-how and
expertise to off er opportunities to
smallholders in developing countries. The way
we do this in India diff ers somewhat from in
other countries because by law we cannot
extend direct credit to farmers. However, we
do act as guarantor for loans to groups of
farmers. Over the last four years Rabobank
Foundation issued fi fty guarantees worldwide,
of which most in India. We’re proud of being
the fi rst foundation to launch a guarantee
product for farmers. Our way of working
makes us unique in India. We have gained the
trust of fi nancial institutions because of our
eff ective due diligence and because we
shoulder part of the risk should things go
wrong. And that’s not all. We are closely
involved with the local fi nancial institutions
and the cooperatives we work with. That can
only be achieved because we have our own
presence in India. Rishabh Saood works locally
in India together with two other colleagues.
Azie
‘It’s almost literally a matter of life and death that the partners in the network learn to seek one another out and support one another’
RISHABH SOOD / PROGRAMME MANAGER
Rabobank Foundation
% organizations where board members and members of sta� have received training
Training for management and members of sta�
Average number of board members who received training
2015
30 39
109project partners
7number of focus countries in Asia where projects are active
2,856,258farmers reached
€8,137,857in investment
116,177members of cooperatives trained
ASIA
26 41
2016
2015 38% 2016 28%
Philippines
LaosIndia
Vietnam
Indonesia
CambodiaSri Lanka
Professional organizationsThe support o� ered by Rabobank Foundation can help organizations professionalize so that they gain more con� dence from their members and can expand further. Training management and board members is an important � rst step in professionalizing an organization.
19Developing countries
We can ’t say i t better :
‘The chances of finding paid work are enhanced, so that refugees no longer have to rely on welfare benefits: 30 people already have jobs.’
VLUCHTELINGENWERK NEDERLAND
‘Because youngsters in secondary vocational education are aware of their income and outgoings when they turn 18, they have fewer problem debts and as a result they don’t experience the consequences arising from financial difficulties.’
CODENAME FUTURE, NETHERLANDS
‘The biggest transformation is that farmers gain entrepreneurial vision. Our organization is increasingly being valued as a key element in improving their production conditions and marketing.’
CAFE COLIMA, MEXICO
‘The organization has succeeded in professionalizing its management and in increasing access to markets. The organization is now Utz certified.’
MRERE KIRWA, TANZANIA
‘Rabobank Foundation helped us to fund more micro-credit applicants. And showed us how regulation and advantages work with external commercial parties. And all this at attractive interest rates, enabling us to reduce the organization’s costs.’
ANNAPURNA, INDIA
‘Thanks to the financing we were able to expand the acreage for the cultivation of organic coffee.’
ASOCIACIÓN DE SERVICIOS FINANCIEROS CAFETALEROS, BOLIVIA
‘Thanks to the support from Rabobank Foundation, our organization is able to meet its members’ need for credit. This support has also enhanced the confidence of our members in our organization. We’ve been able to grow and to boost our self-sufficiency.’
CLECAM EJOHEZA, RWANDA
‘Prior to Rabobank Foundation’s support we were unable to run a shop where farmer members could obtain inputs and artificial fertilizer. Our results have improved and we no longer experience difficulties in procuring inputs and artificial fertilizer.’
KOPERASI SERBA USAHA BRITANI SEJAHTERA, INDONESIA
‘The customary procedure of selling the coffee before it’s been dried is changing. Farmers now supply more processed coffee, which fetches a good price. What’s more, farmers are now using coffee’s waste products to fertilize their land. And that’s all thanks to the fact that we’ve become suppliers of Fairtrade coffee.’
BUZAAYA, UGANDA
‘Sportspeople with learning difficulties are socially more assertive and self-confident and as a result have become more self-reliant. Care (and security deposits) have declined. For example, the sportspeople are now using public transport rather than specialized local taxi services.’
BEST BUDDIES FOUNDATION, NETHERLANDS